All Forum Posts by: Ty Coutts

Hello @Craig Fitzpatrick II,

First of all, congrats on your first Duplex. I think taking advantage of the FHA program for that was very wise of you.

To answer your direct question about personal credit -by putting a home mortgage on your credit almost always benefits your score in the long run. Obviously you have to prove that you can responsibly handle that amount of debt by never missing or being late on payments, but if you are responsibly paying off that debt than it will increase your score.

For your next purchase, you will not be able to use the FHA program again unless you refinance your current duplex into a different loan program as you cannot have more than 1 FHA loan at a time.

However, using Fannie/Freddie as a conventional loan is completely doable. You will just need a minimum of 5% down, and of course make sure all your DTI ratios are qualifiable. Good news is, there are multiple different ways to possibly include the income you are making from the duplex to offset that mortgage cost for your next purchase.

Let me know if you have more questions or would like to talk through the finer points of things as you look for your next one!

Both @Simmy Ahluwalia and @Greg Scott have good points. Scott is correct when telling you that looking at conventional (fannie or freddie) loans as your primary you will not be able to vest in the name of the LLC. You can always quit claim deed this into your LLC later, but the mortgage will always show up under your credit individually.

If you buy it as a "second home" using conventional financing you can vest it in your LLC, but again you are going to be the seen as the personal grantor for that loan regardless.

Simmy has a great point bringing up the DSCR loans which are phenomenal for investment purchases, but the obvious downside is the extra money you have to bring to the table for the higher down payment.

I personally choose to put as least money down as possible always, and care less about them being under an LLC. Beefing up the insurance policy is still going to cost you less then all the extra money you have to put down. There are a ton of different options and creative solutions out there for any financing need, so let me know if you have any questions!

Hello Tyler,

I am also located in Denver and just started my own meetup to accomplish this exact thing! We are finalizing the date for our first meeting, but it will most likely be in the next 2-3 weeks and we would love for you to attend.

What type of partner are you looking for exactly, and what are your real estate goals? I would love to help get you connected with a ton of different people all with like minded ambitions when it comes to growing wealth through real estate. Let me know if you ever want to meet up somewhere just you and I as well! 

I don't personally use a VA, but have helped aa ton of clients through the process. The benefits are truly amazing!

There are a ton of unique niches among it and it can vary for every veteran depending on their COE and if they are exempt from their funding fee or not, but almost always they can buy a home for 0% down which is incredible on it's own.

Also, a lot of people don't know that you can potentially use your VA benefits twice depending on how much was used on the first round. Also, you can refinance that first VA loan into a conventional one to be able to free up the use of your VA benefits again.

Would love to help you more with any questions you or anyone you know may have!

Hello @Andreas! 

I myself am not currently in Nashville, but love to visit often! I have quite a few clients in that area that I help analyze their different investment home ideas. I bet they would love to link up with you.

Let me know if you are hosting any events or anything and I will advise them to meet up. Or you can always message me directly and we can start a conversation!

I highly recommend Brett Nissen. https://www.biggerpockets.com/..

 He is a Bigger Pockets member himself and in the Jacksonville area. Very smart, kind and eager to help!

Let me know if you need any other help with your growing portfolio 

Great question! 

I personally use HELOC's because I enjoy the fact that I can use them over and over again for multiple deals.

Essentially think of a credit card with a very high limit (and much lower rates than a credit card). Once you pay it all off, you do not have to make payments or pay interest since you have a 0 balance. Then you can choose to take money out again for a new down payment or renovation costs and do it all over again!

Keep in mind, some HELOC's have minimum annual payments (again like a credit card), but all in all it is a wonderfully useful tool.

Let me know your thoughts!

Looks like you have some great advice and connections with Erik and Adam's responses already!

Happy to help answer any other questions you may still have on your strategies for your next property. Love helping others grow and learn! 

Hello Rebecca!

Congrats on already taking the first step in educating yourself by joining this community!

I started with a post very similar to this when I first joined the Bigger Pockets and I have connected with so many amazing people and received a ton of great advise and recommendations from here.

Have you already thought about your long term goals and your "Big Why" behind why you are wanting to invest in multi families?

Would love to chat at any time! Feel free to message me directly as well.

I agree with @Jay Thomas! Even on the lender side of things, it is all about the numbers game. Perfect your scripts, be confident in your value you can bring to others, and keep plugging away at the calls! You never know where the next yes is going to come from.