All Forum Posts by: Ty Coutts

Of course! I hope you're able to make the best of this situation.

In this situation, the responsibility for back taxes typically lies with the seller, but the title company's role is crucial. Title insurance is meant to protect you from such issues, and it seems the title company may have failed in their due diligence by not rechecking the tax records closer to the closing date. You should first contact the title insurance company to file a claim, as they should address any issues missed during the closing process. If the title company remains uncooperative, consulting a lawyer to pursue legal action may be necessary to resolve this matter and ensure you're not held liable for the previous taxes. Please feel free to reach out if you have any further questions/just want to discuss!

It's generally advisable to have a guarantor in such lease agreements, as it provides an additional layer of security. While the company's legal counsel is confident in their financial stability, having a guarantor ensures that you're protected if the company fails to meet its obligations. Your attorney's advice aligns with standard practices to mitigate risk. If the company is hesitant, consider their financial statements to assess their stability or negotiate other security measures like a larger security deposit. Ultimately, having a guarantor offers added peace of mind. Hope this helps. Feel free to reach out to me directly if you have any other questions/just want to discuss!

Hello Dan Breen,

It sounds like you've received notifications about your VA guaranteed loan potentially being eligible for the VA IRRRL (Interest Rate Reduction Refinance Loan) program. The VA IRRRL is a refinancing option offered to veterans and service members with existing VA loans to lower their interest rates and reduce their monthly payments. While the VA IRRRL program itself is legitimate and beneficial for eligible borrowers, it's crucial to verify the authenticity of the communications you receive. Take steps to confirm the source independently before proceeding further.

My best piece of advice would be to contact your lender instead of relying on callbacks from letters or unknown numbers, contact your current mortgage lender or a trusted VA-approved lender directly. They can verify your eligibility for the VA IRRRL and guide you through the process without the risk of dealing with potential scams.
If you have more questions or need further assistance, feel free to ask. Good luck!

Shifting your focus to out-of-state markets like Texas and Ohio can be a good strategy. Texas cities like Austin, Dallas, and Houston are experiencing population growth, have strong job markets, and are generally landlord-friendly. Ohio, particularly cities like Columbus and Cincinnati, offers lower property prices with decent rental yields and growing populations.

Both states meet your criteria, but Texas might have higher property prices compared to Ohio. Consider factors like flight convenience, property management options, and your comfort level with the local market conditions. Research specific neighborhoods for safety and rental demand to ensure they align with your investment goals.

Hope this helps. Feel free to reach out if you have any other questions

Hey Rowan, 

It's impressive that you're diving into real estate investing at such a young age. To achieve your goal of owning one or two single-family homes before finishing high school, focus on building credit and saving aggressively. Consider partnering with your parents to co-sign a mortgage or exploring creative financing options like FHA loans or private money lenders. Continuously educate yourself through resources like BiggerPockets, and network with local real estate groups to gain insights from experienced investors. Lastly, plan to leverage your future income from working at your dad's business to support your investment goals.

If you want to discuss further, or would like to talk about taking out a loan in order to buy an investment property, or for any other purpose please feel free to DM me.

Hello, Sonja Montielh, congratulations on your upcoming closing and welcome to the forum! It's wonderful to hear about your new home and your plans to venture into rental property investing. As a loan officer, I'm here to help guide you through this exciting journey. Here are some tips and insights to consider as you begin building your real estate portfolio:

Options:

Refinancing: If you have equity in your condo, consider refinancing to access funds for future investments.
Investment Loans: Explore options like conventional loans for financing future rental properties.
HELOC: Depending on your equity and financial situation, a Home Equity Line of Credit (HELOC) could provide flexible financing for down payments or renovations on new properties.

Build a Financial Strategy:

Budgeting: Create a detailed budget that includes mortgage payments, property taxes, insurance, and maintenance costs for your rental property.
Cash Flow Analysis: Calculate expected rental income versus expenses to ensure positive cash flow.
Emergency Fund: Set aside funds for unexpected repairs or vacancies.

Research the Rental Market:

Location: Choose rental properties in areas with strong rental demand and potential for appreciation.
Tenant Profile: Understand the demographics and preferences of renters in your target market.
Market Trends: Stay updated on rental market trends and local regulations affecting landlords.
Property Management:

Self-Management vs. Hiring a Manager: Decide whether you'll manage the property yourself or hire a property management company.
Tenant Screening: Develop a tenant screening process to find reliable renters who meet your criteria.

Legal and Tax Considerations:

Legal Structure: Consider forming an LLC or another legal entity to protect your personal assets.
Tax Implications: Understand tax deductions available for rental properties, including mortgage interest, property taxes, and depreciation.

Networking and Education:

Real Estate Forums: Participate in forums like this one to learn from experienced investors and ask questions.
Local Real Estate Groups: Join local investor meetups or associations to network with professionals in your area.
Continued Learning: Attend seminars, webinars, or workshops to stay informed about real estate investing strategies and market updates.

Starting with a rental property while keeping your condo as an investment is a great way to begin building wealth through real estate. Remember, every investment comes with its challenges and learning opportunities. By educating yourself, planning carefully, and leveraging the expertise of professionals, you're setting a solid foundation for a successful rental property portfolio.

Feel free to ask any questions or seek advice as you embark on this exciting journey as I am a loan officer. Best of luck with your closing tomorrow and your future endeavors in real estate investing!

Glad to help, I do think this would hold up. Please shoot me a message or send your number so we could clarify though. I'm here to help.

Hello Damion Brown,

When deciding between a HELOC and a hard money loan for your BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy in Philadelphia, there are several factors to consider beyond the interest rates. Each option has its pros and cons that can impact your investment strategy and overall success.

HELOC (Home Equity Line of Credit)
Pros:
Lower Interest Rates: HELOCs typically offer lower interest rates compared to hard money loans.
Flexible Terms: You only pay interest on the amount you draw, providing flexibility in how much you borrow and when.
Revolving Credit: As you pay down the principal, the available credit replenishes, allowing you to use it for multiple projects.
Longer Repayment Periods: HELOCs often have longer repayment periods, which can make managing payments easier.

Cons:
Qualification Requirements: HELOCs require good credit and sufficient equity in your primary residence.
Secured by Your Home: Your primary residence is collateral, which means a default could risk your home.
Variable Interest Rates: HELOCs often have variable rates, which can increase over time.

Hard Money Loan
Pros:
Easier Qualification: Hard money lenders focus more on the property’s value and potential rather than your credit score.
Speed of Funding: Hard money loans can be approved and funded quickly, which is beneficial in competitive markets.
Flexible Use: These loans are designed for real estate investments, making them suitable for purchase and renovation costs.

Cons:
Higher Interest Rates: Hard money loans typically have higher interest rates and fees compared to HELOCs.
Short-Term Loans: They usually come with short repayment terms (often 12-24 months), requiring a quick turnaround on your project.
High Fees: Origination fees and other costs can add up, increasing your overall project expenses.

For a BRRRR strategy, a HELOC might be the better option if you qualify and have sufficient equity in your primary residence. It offers lower costs and greater flexibility, which can be crucial when managing rehab projects. However, if you need fast access to funds or have difficulty qualifying for a HELOC, a hard money loan could be a viable alternative, especially if you have a clear plan to refinance quickly. I hope this helps you out. Feel free to message me with more questions as they come.

Hello, Steve Schmidt, selling a partial note can be a great way to generate some immediate cash flow while retaining ownership of the remaining note balance. Here are some suggestions on where to list your note and how to find legitimate buyers:

Online Note Marketplaces
Paperstac: A well-known platform for buying and selling mortgage notes. It offers a secure and transparent process for both buyers and sellers.
NoteTrader Exchange: An online marketplace where you can list your note for potential buyers.
LoanMLS: A marketplace for buying and selling mortgage loans and notes.
FCI Exchange: Another platform where you can list and sell your notes to investors.

Note Investing Forums and Communities
BiggerPockets: A popular real estate investing community where you can network with potential note buyers.
LinkedIn Groups: Join groups focused on note investing and real estate to connect with potential buyers.
National Note Group: An online community where you can connect with other note investors.

Note Brokers and Buyers
Note Brokers: Engage with reputable note brokers who have access to a network of note buyers.
Local Real Estate Investor Groups: Attend meetings and network with local investors who might be interested in purchasing your note.

Financial Institutions
Credit Unions and Community Banks: These institutions may be interested in purchasing performing notes.
Private Equity Firms: Some firms specialize in acquiring performing mortgage notes.

I hope this give some direction regarding your situation. Feel free to message me with more questions as they come.