All Forum Posts by: Zachary Ware

Great context Steve. This is the first time I have heard of a tenant asking for a W9 and my first concern would be that they are running a business out of the unit or a pseudo business.

Welcome to BP! Is your first home purchase an investment property or for your residence? Either way, congratulations.  

Welcome to BP and congratulations on the purchase! 

Hey Pablo, 

Hard Money loans are typically 6-12 months long. 10-12% rate depending on how experienced you are. If you are using your friends' money and not an established HM lender, they should file a lien on the property for the amount they provide you. You should work with a lawyer to have the lien filed, a promissory note drawn up, and any other necessary legal documentation. 

Hey Kevin, 

Would love to get a copy! Thanks.

Great Post Devin! I relate to this very closely and think both are great options but it really depends on what your goals. As Caleb said, starting your own business will require less money down and the return upside is typically significantly better than buying a small property. But the business will be a lot more time and effort than RE. If you can find a property to househack that you only have to put down 10k-20k, this might be a great option if you are comfortable growing your wealth slowly. 

I think you already have some great advice here. Talk with some DSCR lenders about your options and what they will accept. You will find lenders who can refinance the STR with their current state and look at projected revenue or the market rent on the appraisal. I think that leasing the property to yourself to qualify does not sound like a great idea and I would disclose this upfront with your lender if this is the route you go.

If you can make a better return by putting your money into something else, it makes sense to sell even at a loss.

You will look for liability, property, and loss of use. I would recommend getting your coverage at 100% of the replacement cost. If you plan on using a lender for the purchase, ask them what their minimum requirements for insurance are. 

Some rental property software will allow you to do this for free such as RentRedi. I prefer to use DocuSign but neither is a free service. I have not come across a good free E-Signature software.