All Forum Posts by: Ty Coutts

Hey Darius, 

I am a loan officer in CO but I am licensed in Colorado, Arizona, Arkansas, California, Florida, Kansas, North Carolina, Tennessee, Texas and Wyoming. Good luck on your move! If you want to discuss or have any questions feel free to reach out to me directly!

Starting out in real estate with a focus on Section 8 rentals, the BRRR method, and Airbnb properties is a strategic approach. Here's how to get started and advice on each area:

Section 8 Rentals:

Education: Learn about the Section 8 program, including eligibility requirements and benefits for landlords.

Networking: Connect with local landlords who have experience with Section 8 rentals for practical advice and insights.

Property Selection: Look for properties in Raleigh, NC, and surrounding areas that meet Section 8 housing standards and have potential for rental income.

BRRR Method (Buy, Rehab, Rent, Refinance):

Research: Study the BRRR method to understand how to find undervalued properties, finance renovations, and refinance to pull out equity.

Partnerships: Consider partnering with contractors, lenders, and real estate agents experienced in BRRR to streamline the process.

Market Analysis: Analyze local market conditions to identify neighborhoods with potential for property value appreciation and rental demand.

Airbnb Properties:

Regulations: Familiarize yourself with local regulations and zoning laws governing short-term rentals in Raleigh, NC.

Property Preparation: Prepare properties to meet Airbnb standards, including furnishing, amenities, and guest experience.

Marketing: Develop a marketing strategy to attract Airbnb guests, leveraging platforms like Airbnb and optimizing property listings.

Overall Strategy:

Continuous Learning: Stay updated with industry trends, attend local real estate meetups, and consider joining real estate investor groups.

Financial Management: Manage your LLC, Opal Capital Holdings, effectively to track expenses, income, and tax obligations.

Long-Term Goals: Keep your multifamily apartment goal in mind, and progressively scale your real estate portfolio based on experience and market opportunities.

If you would like some help getting started, or just want to discuss please feel free to reach out to me directly. Hope this helps and good luck on your journey!

Investing in New Builds: Considerations and Process

New Build Investment Options:

Build and Sell (Fix and Flip):

Pros: Potential for high profits with modern appeal.

Cons: Requires significant upfront investment and market risks.

Build and Hold (Long-term Rental):

Pros: Attracts quality tenants, potential for higher rental income.

Cons: High initial costs, market fluctuations.

Process Overview:

Market Research: Identify high-demand areas.

Land Acquisition: Purchase suitable land.

Design and Planning: Work with architects and obtain permits.

Construction: Oversee build quality and manage costs.

Marketing (Fix and Flip): Highlight new features to attract buyers.

Tenant Management (Rental): Implement thorough screening processes.

Advice:

Educate Yourself: Understand local regulations and market dynamics.

Risk Management: Prepare for potential delays and cost overruns.

If you have any other questions/just want to discuss feel free to reach out to me directly!

Investing in real estate in the U.S., particularly in neighboring states like New York (Buffalo) or Michigan (Detroit), can be a promising venture for Canadian investors.

Evaluating Markets:

Buffalo, New York:

Pros: Buffalo has seen revitalization efforts, making it attractive for investment. It has a diversified economy with sectors like healthcare, education, and manufacturing. Property prices are relatively lower compared to major Canadian cities.

Cons: Certain neighborhoods may have higher crime rates or lower demand for rentals. Economic fluctuations can impact property values.

Detroit, Michigan:

Pros: Detroit offers low property prices and potential for high returns on investment. There are opportunities for fixer-uppers and BRRR strategies due to abundant distressed properties.

Cons: Some areas may still struggle with high crime rates and vacant properties. Local economic conditions can vary by neighborhood.

Key Considerations:

Local Economy: Research the economic stability and diversification of each city. Stronger economies generally support higher rental demand and property appreciation.

Neighborhood Analysis:

Safety and Crime Rates: Avoid neighborhoods with high crime rates, as these can affect property values and rental income.

Property Demand: Look for areas with growing populations or proximity to employment centers to ensure consistent rental demand.

Property Condition: For fix and flips or BRRR, assess the condition of properties carefully. Consider renovation costs and potential for adding value through improvements.

Resources and Tools:

Local Real Estate Networks: Connect with local real estate agents, property managers, and investors for insights into specific neighborhoods and market conditions.

Online Tools: Use real estate websites and platforms to analyze property prices, rental yields, and neighborhood demographics.

Tips for Canadian Investors:

Tax Implications: Understand tax implications for Canadian investors owning U.S. property, including withholding taxes on rental income and capital gains.

Legal and Financial Advice: Consult with a cross-border tax specialist and real estate attorney to navigate legal and financial aspects of investing in the U.S.

If you would like to discuss further/need financing please feel free to reach out. Hope this helped! Hit me up with any more questions if you like. 

Hi Maddy,

Step-by-Step Process for Seller Financing:

1. Identify Properties: Find properties where sellers own them outright.

2. Evaluate and Negotiate: Assess property value and financials. Negotiate terms like purchase price, down payment, interest rate, and repayment schedule.

3. Draft Agreement: Create a detailed seller financing agreement with a real estate attorney.

4. Close the Deal: Finalize the transaction with all legal documents signed and recorded.

5. Manage the Property: If renting, manage it effectively and maintain communication with the seller.

Advice and Tips:

- Educate Yourself: Understand legal and financial implications.
- Build Trust: Establish rapport with the seller for ongoing communication.
- Be Clear: Define all terms clearly in the agreement.

Mistakes to Avoid:

- Incomplete Due Diligence: Conduct thorough inspections and financial analysis.
- Unclear Documentation: Ensure agreements are well-drafted to prevent misunderstandings.
- Market Trends: Consider future market impacts on property value and income potential.

 Seller Financing on Market Properties:

- Yes, it can be used for on-market properties with motivated sellers.

I am a Loan Officer licensed in multiple states, so if you would like to discuss further please feel free to reach out to me directly! 

Hello Jim,

Evaluating prospective tenants who do not have a traditional credit score can be challenging but still feasible, and I appreciate your fairness. 

- Some credit bureaus and services (like Experian RentBureau or Esusu Rent) offer alternative credit reports that include rent payment history, utility payments, and other recurring bills. These can provide insight into their payment habits.

- Request contact information for their previous landlords to verify their rental history. Ask about their payment punctuality, behavior as tenants, and reasons for leaving.

- Since they have been paying taxes for eight years, request copies of their tax returns for the past two to three years. This will help verify their income.

- If still skeptical, ask for personal references from employers, community leaders, or other respected individuals who can vouch for their character and reliability.

By using these methods, you can make a more informed decision about renting to this couple, giving them a fair evaluation while also protecting your interests as a landlord. Good luck!

Hey Oliver,

To reduce the high interest rates on your commercial loans for single-family houses in upstate NY without changing the loan terms, consider these steps:

1.Negotiate with Current Lender: Highlight your good payment history and compare rates from other lenders to negotiate a lower rate.

2. Explore Loan Modification: Request a rate reduction or modification from your current lender based on improved property performance.

3. Look into Government and Local Programs: Check if you qualify for SBA or local economic development programs that offer lower-rate refinancing options.

4. Shop Around: Compare rates from other commercial banks, credit unions, or online lenders to find competitive offers.

5. Consult with a Financial Advisor: Seek advice to navigate negotiations and explore refinancing options that best fit your needs.

By taking these steps, you can work towards lowering your interest costs while keeping your loan terms unchanged. I am a Loan Officer so if you would like to explore options, or if you just want to discuss, feel free to reach out to me directly!

Hello David,

I use Broker Plus as a loan officer, it's great and very intuitive. 

Hi Justin, you have a complex financial situation, and your questions touch on detailed aspects of how capital gains and 1031 exchanges are treated in mortgage underwriting. 

Use of Year-to-Date Capital Gains in Income Averaging:
Fannie Mae allows for capital gains to be considered as qualifying income if it is recurring and consistent. Typically, underwriters will use an average of the last two or three years of filed tax returns to determine this income. Year-to-date capital gains can sometimes be included, but this depends on the consistency and nature of the gains. The underwriter will need to see proof that these gains are consistent with past income and not one-off events. If you can demonstrate that your year-to-date capital gains are in line with previous years and you have documentation to support this (such as brokerage statements and tax records), an underwriter might include it in the income average.

It's crucial to work with a knowledgeable mortgage broker or loan officer who understands your unique financial situation and can navigate the complexities of underwriting capital gains income and 1031 exchanges. Comprehensive documentation and a clear explanation of your investment strategy will be key to securing the HELOC. I would love to speak over the phone to answer questions or discuss the HELOC and if I can help. Please don't hesitate to schedule a time using the link below.

https://calendly.com/tycoutts

Hello Hunt Van Winkle,

Banks typically lend with a maximum LTV ratio of 75% for several reasons related to risk management, regulatory requirements, and financial stability. Although, there are a few ways to get that number up. I've found some lenders that will go up to 80% sometimes, but I think your best bet might be a government-backed loan if you want such a high LTV ratio. I am loan officer licensed in NC, so if you are interested in speaking on the phone to really discuss your situation, please do not hesitate to schedule a time to talk using the link below.

https://calendly.com/tycoutts