All Forum Posts by: Tyler Herman

Thanks. Yeah the DSCR out is a lot easier. It's the initial loan that's more the issue. Would be nice to work with one person for both.

Who is a hard money lender doing fix and rent and DSCR loans sub $100k?

Would love if I could find someone willing to lend on $60k-$80k fixers and dscr out with an ARV of $90-120k. Can find these all day but most lenders have a $100k minimum.

Haven’t had luck looking to local banks/credit unions because I know I’ll get that response. 

So if I setup an LLC, setup a self directed 401k, transfer money from traditional IRA into the 401k, use that to take out a 401k loan of $50k, how does that work with crossing streams and tax conflicts?

Can that money be used for renovations on a property within the LLC?

Can that money be used for renovations on a property I bought in my name via conventional financing? This is the one I'd probably do first if that's not a conflict.

Spent a year living in abnbs and never turned on a tv if there was one. I was always after the cheapest places possible so there were times when there wasn't a tv, or I wasn't paying attention and didn't notice.

For a 3/2 its probably needed, unless it's a vacation rental and you're focused on "getting away"

Stock isn’t a singular thing. 

There are companies that are overvalued and some that are not just like there are properties listed for more than they’re worth. 

When you think of your investment options with generalities you’re never going to find anything to invest in. 

There are formulas and rules of thumb for both types of investing and neither involve speculating about what the market might or might not do. 

So you're a turnkey operation. Go look at their websites and see what they do. I'm guessing its more about marketing and the #s than anything specific you do to the house. 

I'm in a similar situation; buying rentals but it feels so slow saving up for the next down payment. Just sitting on your hands waiting with nothing to do. So I end up reading online and watching videos seeing if there is SOMETHING else I can be doing to get the next property a little faster. 

Maybe a flip, hard money, wholesaling, private lender, live-in, fix and refinance, but it just ends up not being the right thing for me, or no properties in the local market, or the risk doesn't seem worth it in the long run.

Along the way you see endless amounts of bad/the same content. Pretty much everything on Youtube is garbage, including the BiggerPockets stuff. Most podcasts are more entertainment than actual substance. Either that or this business just isn't that complicated and there isn't much else to learn unless you want to be a general contractor or tax professional. 

Ultimately, if real estate is just a side thing and you're collecting rentals its a decent way to build wealth but its just going to be boring and that's the way it is. Maybe not as boring as index fund investing but still along the same vein. 

Just throwing out an example. $30K down payment on a single $100k house. 

I'm not saying the bay area isn't real life but reality is different in other areas of the country. You basically have enough money if you decided to do real estate investing full time to do that. Or a lot of other things if you felt so inclined. Or just go buy that home and keep on with what you're doing. 

I would think if you are a successful wholesaler you’d eventually keep some of the deals for yourself.

I’d pick somewhere where there are easily defined good middle and bad areas. Some of the cities people are flocking to here on BP are a real mixed bag and honestly I think a lot are buying into bad areas someone who lives in the area would probably have avoided. 

I’d pick somewhere you’ve at least been too once or twice and/or is cheap to fly to. 

After that it’s more about having good people to manage for you.

The grass is not always greener. If you can get your numbers within 2 hours of where you live it’s always better to do that.