All Forum Posts by: Tyler Sweet

Congrats!

Looks like you used traditional financing for this deal. Is that the case?

Also, did you find this on the MLS, or off-market?

I know BP has a rookie Facebook group that's associated with their rookie podcast. Also, is there a specific niche you are looking for, or want to be associated with? For example, I'm a military guy so I'm in a mastermind group that is all military real estate investors. Whatever niche you want to be in, I'm sure there is a mastermind for you. 

Trevor, 

I haven't had personally used seller financing. However, the BiggerPockets podcast episode 554 goes into some details about how you can use it. That podcast alone has turned me onto the idea. 

Hey Travis,

Ill give you my best answers here, albeit, they'll be very broad since there are a lot of options:

How are people finding properties that are below market value? 

- Realtors (sometimes), wholesalers, direct mail campaigns, cold calling/emailing owners, and networking.

How are you financing them? 

- Depends. The most desirable financing (in my opinion) is long-term conventional loans with a low fixed rate. Now, how you get there is a different story. You can BRRRR into a conventional loan, refi from another loan product, or straight up use a 20-25% down from the jump...there are a mass number of lenders with different products, so this all depends. Also, seller financing is available depending on the situation.

I don't know if we have enough equity to refinance out of our FHA, but that could be an option?

- You could, depending on the loan product you are going into. for a traditional loan product, you would need an LTV of 75-80%.

Just my takes, but I would do two things. 1) check with a lender and pick their brain. 2) look into services like PropStream to get owners' info so you can reach out to them directly. 

@Seth Mattox,

I'm an active duty guy myself! Shoot me a message, I can give you my take, but most importantly, I can point you in the direction of other military real estate investors. 

Hey Stephen,

I'm an Active duty guy myself and just closed on my third property (a triplex). 

The answer is, it depends....

Depends on the lender or on the financing you are using. In my case, I just had to show that I had a "sufficient" amount of cash reserves. Of note, your TSP does count as cash reserves! You can also take out a general-purpose loan from your TSP up 1/2 of the balance. This could be helpful for a downpayment (that's what I did). Since you are borrowing from yourself, this loan does not appear on your credit report or impact your DTI.

For me, it's all about the power of economies of scale. Let's say I have a triplex:

- If I increase rents by $100 a unit, I'm increasing revenue by $300. 

- When I replace a roof, I'm replacing 1 instead of 3.

The list goes on and on, but those are some basic examples.

@Doug Spence sure am! Putting about $350 a month aside. 

Makes sense. My lender was willing to use crypto on a deal (once converted into USD). However, there was a lot of additional paperwork, and I had the capital...So I just opted for the more traditional path instead.  

Has anyone purchased Real Estate with cryptocurrency? Did you sell first into cash, then purchases? What do you wish you knew then that you know now? Would you do it again?