All Forum Posts by: William Hurd

@Erik Estrada, @Nate Sanow, @Kirsten M., Thank you all for your insight. These are definitely some questions I will bring up as we continue to explore all options with banks. 

My brother and I are just getting started out in real estate investing and are looking to follow the BRRRR strategy and looking to acquire our first property within the next 6 months. We are trying to be diligent on the front end and are reaching out to potential lenders to discuss financing options for when we get to the "refinance" portion of the BRRRR strategy. After talking with multiple traditional lenders, we noticed that there are multiple options in terms of lending outside of the traditional fixed rate loans. Options such as 10-, 15-, and 30-year loans, 10/6 arm, 10/1 arm, 5/6 arm, 5/1 arm loans are available. One common issue that we see from most lenders is that the 30-year fixed loan comes with a price (e.g. costs 3.5 - 5.5 points to obtain the loan). The second issue is that most of the lenders that we call will not allow for an LLC to have the loan and it has to be in an individual's name.

My question is 1) Do you have any recommendations on lenders who are investor friendly? 2) Do you advise agains ARM loans, and what are the pros and cons? 3) Any advise on purchasing properties as an individual vs as an LLC?

Thanks,

@Katie House thank you for your input. I would love to pick your brain on some do’s and dont’s for our market area. Did you purchase a turn key rental? What were some of the considerations and requirements you looked for in purchasing to ensure you got a good deal? I agree with waiting until the winter to purchase down there in that area.

@Brian Gerlach I am looking at Orange Beach, AL; Gulf Shores, AL; Dauphin Island, AL areas right now. Those are close enough for me and my wife to manage of something is needed. What are some of the ways to do market research? I’ve been going through VRBO and Airbnb looking at the size condos I’m interested in and gaging the average number of weeks rented with the varying prices. I plan on reaching out to a few of the owners to see if they will talk with me on some of the ins and outs and lessons learned that they have done with there property.

@Joseph Bafia thank you for your input. The biggest thing I am looking at for this investment will be a turn key rental with a history of positive cash flow. One of the areas I will have to do a lot of research in is how to find that right motivated seller that will make the purchase worth it.

I am a new investor looking to get started in real estate. The area that I am located in has a fairly high volume of tourist that visit for vacations. Are vacation rentals a good way to get started in the real estate investing market?