All Forum Posts by: Tyrell Proby

Based on the information you've provided, it may not be a wise financial decision to purchase a new construction SFH in Austin with the intention of renting out rooms to roommates. While owning property can be a good investment in the long term, it sounds like you may not see much immediate return on your investment with this particular property.

If you are still paying $1000-1400 to live in your own home with 3 roommates, and you would be breaking even or losing $200-300 per month if you moved out and rented out your room, this may not be a profitable endeavor. It's important to factor in all of the expenses associated with owning and maintaining a property (mortgage payments, property taxes, insurance, utilities, repairs and maintenance) in addition to your living expenses.

Have you considered looking for other types of investment properties, such as multi-unit buildings or properties that require some fix-up work? While they may require a larger upfront investment, these types of properties may offer better returns in the long run.

Ultimately, it's important to weigh the potential benefits and risks of any investment property carefully before making a decision. I would recommend consulting with a financial advisor or real estate agent to discuss your options and determine the best course of action for your specific situation.

Considering the current economic stress in the US, a mid to high 6% interest rate for a quadplex is not necessarily high or low, but it may be considered average. Interest rates are currently fluctuating due to the ongoing pandemic and economic uncertainty, and the rates offered may also depend on different factors such as loan size, and loan term. It's advisable to shop around and compare rates from different lenders to ensure that you're getting the best deal possible.

During a recession, traditional lenders always become more risk-averse and reduce their lending activity. This makes it difficult for real estate investors to secure the financing they need to take advantage of investment opportunities. Hard money loans, however, can be a better option during a recession, refer to reasons below.

1. Flexibility: Hard money Lenders are able to make quick decisions about loans. This can be especially beneficial during a recession when time is of the essence and borrowers need to act quickly to secure financing.

2. Less stringent requirements: Hard money lenders (depending on who you work with) are typically less concerned with a borrower's credit score and financial history than traditional lenders, which can make it easier for borrowers to secure financing during a recession when credit markets may be tight. But, this does not mean that Credit doesn’t play a role at all. Generally speaking, one may have a tough time finding a HM lender to lend on their project if their credit score is far below avg.

3. Availability: During a recession, traditional lending sources may be more risk-averse and reduce their lending activity. Hard money lenders, on the other hand, may be more willing to lend in uncertain economic conditions.

4. Asset-based lending: HMLS secured by real estate, which means that the loan is backed by a tangible asset. This can make hmls less risky for lenders than unsecured loans, which can be especially important during a recession when the value of assets may be volatile.

Overall, hard money loans can be a valuable financing option during a recession in real estate when traditional lending sources may be limited. By working with a reputable hard money lender and carefully evaluating the terms of the loan, investors may be able to take advantage of investment opportunities even during uncertain economic times.

Completely agree, but let's also mention that what you are saying is very relative to the HML company you are working with and where you are looking to buy. More rural projects are going to take into account different measurements and requirements for precautionary purposes.

To give you the easiest version to understand. Hard money is a type of short-term loan that is used by real estate investors to finance investment properties. Unlike traditional bank loans, which are based on the borrower's credit score and financial history, hard money loans are based on the value of the property being used as collateral.

Hard money loans are issued by private lenders, rather than traditional banks, and are designed to be fast and flexible, making them a popular choice for investors who need to secure quick funding. The loan term is usually short, ranging from a few months to a few years, and the interest rate is typically higher than that of a traditional bank loan.

If you are looking for a quick and flexible financing solution, Hardmoney allows you to take advantage of investment opportunities that may not be available through traditional banking channels.

Hello all, I am looking to connect with investor friendly Real Estate Agents in the Austin,Tx area! I work as an Investment advisor with New Western and have a handful of agents that I assist in finding their clients off market deals. If you would like to know more or if you would like to just connect in general, I am open to it! Feel free to PM me!  Have a great day!

From a frequent AirBnB with massive groups. I do not believe it would be a problem. Most of those who travel and use AirBnb aren't there to stay and hang in the AirBnb its usually only for sleeping! I think you have a great idea and should shoot for that! ADUs are the move!

PM You!

Hello all, I hope you are having a beautiful day. I wanted to reach out and ask, What are your favorite ways to find contractors in your area minus the Google Search? 

Hello, I am a Investor in Austin TX and every so often I come across people looking to invest in Phoenix. I am looking to network with other investors, lenders, contractors, over there so I can help them out along their journey. Connecting and Networking goes far so if interested please send me a PM and have a good day.