All Forum Posts by: William Arrington

I am also looking.  My CPA is downsizing his practice so I need someone.  Any luck?

So this is weird. HOAs typically can only enforce common area things and if decks are considered common area I would throw a weekly BBQ on the deck of the HOA president (no permission needed). I would have my HOA docs with me for when he calls the cops showing its a common-use area.

I looked into this last year. The British islands charge a crazy tax on your purchase if you're not a citizen. I can't remember the percentage but it was enough for me to just close the webpage and realize I would never buy. I then focused on my favorite place in the world St. John. All I can say is beware the hidden costs. Places like this grow like a jungle and you will pay an enormous amount to keep the property up (you're not there and have to hire a company full time or its built into the (HOA... not always called this) All of these are a lot more than you think they will be. Materials are also an issue... not like the mainland where you can just run down to a massive big box store and get whatever you want. By no means am I telling you not to do it... I didn't look at all the islands but a handful that were all pretty close to st john but prices are pretty elevated right now and even the math on a flood-damaged 6 bedroom 6 bath with a crazy view and me doing 50% of the work was still not workable. Also remember that its normal for something to take a year or even more to sell on some islands so you might not have an easy way out if its not working out. Condo fees in st croix run between $750 and $1100 on average per month. Do your diligence and then have it checked again.... and if you get one... send me pictures... I am always looking for new vacation spots.
https://www.seaglassproperties...
to get you started on your research.  

Quote from @Albert Bui:

Quote from @William Arrington:

Quote from @Mike Wilcher Jr:

What's up BP! So I'm looking to get into an investment property within the next 60 days (🤞🏼) preferably a multi-family. My issue is, I'm stuck when it comes to knowing what course of lending to go with (I have excellent credit, no consumer debt) but don't want to break the bank and I currently live in my primary. 

I have heard a lot of negatives about hard money lenders but I want to learn more about the process. Can anyone give advice,tips,experiences on HML, and would you recommend this for my first investment?

Appreciate ya🙏🏾

Here me out. You move out of your current home and secure an FHA loan (you dont actually have to be a first time buyer to get one.... its a common misconception) You then get a multifamily and move into one of the units and rent your home now. You satisfy the term required for occupancy and either do it again or move back into your other home and rent the unit you just vacated.

sounds great but moving out of a primary he'll encounter the 100 mile rule and if he buys 3-4 units with FHA he'll have to deal with FHA self sufficiency rule. Sure if he makes enough income he'll be fine dealing with both mortgages (on FHA 100 mile rule) but then what about the FHA SS rule ? Hopefully this is a lower priced area (not west or east coast) because most properties on the west and east coast do not even remotely meet the SS Rule due to higher rates right now (FHA SS rule = 75% of all units rents on 3-4 unit properties must be equal or greater than the monthly PITIA).

So concept is easier said than done on the east/west coasts, but if this is Enid, OK or some where a fourplex can be bought for 150-250k then sure its easier to do.

On the west and East cost the fourplex is 800-2.5M dollars so this move out and buy a MFR and ride out your occupancy requirements and do it again and again is a much tougher affair.

@Matthew Kwan @Carlos Valencia

 Not saying it will work but giving ideas... there are alot of ways to finance and people don't always explore them for some reason.  Another loan people forget about is USDA.  The maps are outdated and places you wouldn't think are sometimes eligible.  

Quote from @Mike Wilcher Jr:

What's up BP! So I'm looking to get into an investment property within the next 60 days (🤞🏼) preferably a multi-family. My issue is, I'm stuck when it comes to knowing what course of lending to go with (I have excellent credit, no consumer debt) but don't want to break the bank and I currently live in my primary. 

I have heard a lot of negatives about hard money lenders but I want to learn more about the process. Can anyone give advice,tips,experiences on HML, and would you recommend this for my first investment?

Appreciate ya🙏🏾

Here me out. You move out of your current home and secure an FHA loan (you dont actually have to be a first time buyer to get one.... its a common misconception) You then get a multifamily and move into one of the units and rent your home now. You satisfy the term required for occupancy and either do it again or move back into your other home and rent the unit you just vacated.

Quote from @Dave Wyman:

Quote from @William Arrington:

The best way I can explain this.  You're a broker.  Your client won't commit to you and is having you do a lot of work to find you properties.  Are you going to work hard for him... are you going to send him that gem or are you going to send it to the person that signed an exclusive contract with you?  I would recommend signing with a broker for a specific amount of time to try it out.  

 @William Arrington makes sense.   With what you just said my immediate thought is let's say I sign exclusively with Broker A.  During that time another broker (Broker B) that I already built a prior relationship with brings me an off market deal that Broker A didn't have access to.   I wouldn't feel right using Broker A on that deal even though we are exclusive because it was Broker B who brought me the deal.  What are your thoughts on that? 

You will naturally develop relationships inside the industry.  They will even know what you're looking for.  If someone you know finds a deal and brings it to you then that is different than what I posted above.   Just be careful.  As others have stated.  You do not want to piss off the deal makers in your area by wasting their time.  

The best list I have seen is Rob Abasolo.  He is one of the hosts on the bigger pockets real estate podcast.  Once of his youtube video has a very detailed list with quantities.  

The best way I can explain this.  You're a broker.  Your client won't commit to you and is having you do a lot of work to find you properties.  Are you going to work hard for him... are you going to send him that gem or are you going to send it to the person that signed an exclusive contract with you?  I would recommend signing with a broker for a specific amount of time to try it out.  

It might be worth looking at USDA loans there.  It sounds weird but the maps have not been updated in a while and a property that makes zero sense is now inside that bubble.  

Quote from @Edgar Sanabia:

that sounds like its going to screw over new home buyers. Making it harder to buy a house as well.

Yes and no. VA and FHA loans will still happen but you will need good credit. There are 1,564,537 real estate agents in the united states (didnt realize they tracked the number to this accuracy) so i will say 1/3 no longer exist after a bad downturn. Home prices have to fall... its really that simple. They try to say there are over 400 housing markets but honestly there are closer to 150 viable housing markets that swallow some of the ones they separate into 2 to even 5 markets sometimes. I like to use the 3x rule to determine if a market is starting to bubble. Find the median income for a household then multiply it by 3. Thats your baseline to determine if a market is getting to expensive. So right now the average age of a first-time buyer is 33 to 36 depending on where. So lets use columbus ohio for an example. average medium income for a household in $54,902. That means first-time buyers 3x number is $164,706 for a first home. Average price there as of last month was $264k. Seems little bubbled but not to bad as long as crime isnt to bad in the areas that first-time buyers can afford. The problem is that interest rates moved really fast and home prices didnt follow. Last year $164k with 20% down and 3% rate was $729 a month. Now its $963 at 6%