#3 Ask About A Real Estate Company ContributorPosted @Phil Avery Welcome! Great questions. This has been a topic that has been extensively discussed for many years now. You can search this in the forums or you can visit any one of these links below to help you get more information on your question. Feel free to reach out if I can assist in any way.
https://www.biggerpockets.com/users/ZacharyCole/references
https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review
https://www.biggerpockets.com/forums/92/topics/1116050-a-huge-win-with-cori-from-rent-to-retirement
https://www.biggerpockets.com/co/RentToRetirement
https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences
https://www.biggerpockets.com/forums/67/topics/952977-turnkey-in-indianapolis-through-rtr-case-study
https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey
https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach
#3 Ask About A Real Estate Company ContributorPosted @Alex Gerondale I'm happy to connect. Feel free to reach out whenever you are ready. We all have to start somewhere. I think the OH market would be a great starting point, and you likely have enough capital to purchase a property now based on the lower price points. You could also use the same portfolio lender to put 5% down on an OH property (or whatever amount down you would like to). So there are many options for you to take action now. Just depends on what your goals are, and what is going to get you closer to them!
#3 Ask About A Real Estate Company ContributorPosted Thank you for the kind words. I'm glad to hear you've found all our educational content beneficial! We really put a lot into presenting topics and interviewing guests that we feel will benefit our community. This is one example of interviewing an interesting concept that most have not thought about yet. Feel free to shoot me a message if you would like to jump on a call sometime. I am busy, but never too busy to find time to speak with someone eager to get started in real estate investing. I remember what those days were like. All I ask is that you take action as it wears me out to spend time passing advice to people when they end up never acting on it. To answer you question as straight forward as possible, if you have funds to buy a rental property, you 100% should do that! Tardsus is an interesting concept for people that want to take out credit lines to invest in short term notes (2-3 years), pay the note off sooner, and then repeat. It does not take a lot of capital to get started and you can start seeing some returns rather quickly. However, you need to fully understand how real estate builds true wealth over time and how the tax benefits work of real estate investing. When you combine cash flow, depreciation, leverage, appreciation, etc., you are growing your net worth with an asset in addition to cash flow. An asset that at some point in the future you will be able to trade up to future properties, sell for a large amount, pass to future generations, etc. So I encourage you to educate yourself to look beyond just creating cash flow. It's interesting to me because most new investors come in only thinking about cash flow because it's easy for them to apply a simply math equation of "if I earn x amount of dollars a month from x amount of properties or investments, I can retire by the time I'm X amount of years." They never talk about net worth growth investing in assets. I'm guessing because they don't really understand how wealth is built in things like real estate. On the contrary, when you speak to people who have created tremendous wealth in real estate, they never focus on cash flow. They talk about things like appreciation, tax benefits, accelerated tax benefits/depreciation, leverage, etc. That is how a true asset builds wealth for you over time. So I encourage you to make sure you fully understand the short and long term evaluation of anything you invest in.
Now, if you wanted a different answer about how you could do both as a more aggressive strategy, here it is. You could put your money down on a rental property and then use a LOC to invest in the program. Alternatively you could also put less down on a rental property with a portfolio lender that allows all the way down to 5% (depending on your qualification criteria) to invest earlier and have more capital. Just make sure you understand the loan and the cash flow scenario.
Main point in all of this: Nothing is going to beat real estate long term to create wealth predictably (so accept that), fully understand anything you invest in, be creative to know how you can do more than an either / or scenario, and ultimately take action. The worst thing you could do is nothing. Good luck!
To your success,
Zach!
#3 Ask About A Real Estate Company ContributorPosted Welcome! And thank you for the interest in RTR. TK is a great way for someone to easily get started, to easily scale & diversify beyond what you are currently investing in, and it's a great way to easily invest in a new market where the returns may be more attractive than your local market with a team that is already established. We have many people that invest with us to get their feet wet in out of state investing & then go on to do their own investing, but we also have many people that continue to solely invest with us long term as they like the idea of being more passive in their REI. All up to you & what fits your goals. The best piece of advice I can give you is to do something. Don't fall into the analysis paralysis as so many do here. You grow and learn by actually investing. I definitely recommend connecting with our team to answer your specific questions & see if this is a path that fits your goals. Right now is a unique time where we have a fair amount of new construction that is being offered below market value & cash flows well. This would be a scenario where you could buy TK below market value, contrary to what most people think of when they hear TK. All depends on the market cycle and location though. We also have some unique investor portfolio loan options currently that are allowing for as low as 5% down on new construction. I'm guessing this option will be at capacity within a month or two, but something worth looking into. Hope this all helps. We look forward to hopefully connecting with you soon.
Here are some other threads about RTR and TK in general that might help your research:
https://www.biggerpockets.com/users/ZacharyCole/references
https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review
https://www.biggerpockets.com/forums/92/topics/1116050-a-huge-win-with-cori-from-rent-to-retirement
https://www.biggerpockets.com/co/RentToRetirement
https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences
https://www.biggerpockets.com/forums/67/topics/952977-turnkey-in-indianapolis-through-rtr-case-study
https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey
https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach
#3 Ask About A Real Estate Company ContributorPosted @So Da We have building teams throughout both states in multiple cities, so there are many options to choose from based on your goals. You can see active inventory that is live on our website. Right at this moment, we have many options in SWFL (Cape Coral, Lehigh, Fort Myers, Tampa), outside of Orlando and Pensacola area. Alabama is mostly in areas between Huntsville and Birmingham, but we also have some costal new builds that operate well as STR or LTRs. Main point is that you will find specific answers to all your questions by simply speaking with our team. We are here to help!
#3 Ask About A Real Estate Company ContributorPosted Thanks for the interest in this portfolio loan product that allows for only 5% down for up to 5 investment properties. We are happy to put you in touch with specific investors that are currently using this product with rentals. @John Bear is one person who just closed on 5 properties. @Bernard Joseph S. is another investor looking into using this creative strategy. Please keep in mind that while you can put only 5% down on multiple investment properties (if you qualify financially), you are not required to. You can put down whatever % down you would like to, but the min is 5%. This can be a creative way for investors to stretch their capital further to acquire more properties with less money down to scale quicker. All up to you and what makes sense for your goals. Feel free to reach out to our team if you would like to speak with more people that are using this strategy. We've also put out a lot of good information on our Youtube channel that explains how this works in greater deal along with which properties/locations qualify for this. We are here to answer any questions you have!
Here are some more forum resources that might help you in your research as well:
https://www.biggerpockets.com/users/ZacharyCole/references
https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review
https://www.biggerpockets.com/forums/92/topics/1116050-a-huge-win-with-cori-from-rent-to-retirement
https://www.biggerpockets.com/co/RentToRetirement
https://www.biggerpockets.com/forums/92/topics/808479-rent-to-retirement-experiences
https://www.biggerpockets.com/forums/67/topics/952977-turnkey-in-indianapolis-through-rtr-case-study
https://www.biggerpockets.com/forums/12/topics/533693-anyone-worked-with-renttoretirement-turnkey
https://www.biggerpockets.com/forums/92/topics/581730-rent-to-retirement-zach
#3 Ask About A Real Estate Company ContributorPosted Congratulations on the primary purchase! That is very exciting.
You are correct. Primary residences you can put less than 20% down to purchase via conventional loans. You could house hack your primary by renting out rooms or if you bought a 2,3, or 4 unit property, lived in one and rented out the other units. You can also move out of your primary at some point in the future and turn it into a rental. Those are all options to eventually use your primary as a rental without putting 20% down.
When buying a pure rental property with conventional financing, you would have to put at least 20% down in most all conventional cases. If you buy a home as a 2nd home and rent it out part time, that usually only requires 10% down.
Remember, this is all talking about conventional loans. I did mention in my last post that we do have portfolio lenders in our network that offer up to 100% financing on up to 5 rental properties if you qualify financially. That is a non-conventional loan produce. I won't go through all the details on this post, but it might be something worth exploring so you are aware of all your options. Hope this helps! Keep asking the good questions to move you closer to your goals.
-To your success,
Zach & the RTR team
#3 Ask About A Real Estate Company ContributorPosted Hi @Ger Xiong! Welcome! It sounds like you are looking to purchase a rental with a conventional loan, which means you would need to hold the property in your own name and consider an LLC after closing potentially. I'm not an attorney, but we do have RE specific attorney's on staff that have advised us & our clients on this subject. Rental properties always require at least 20% down with conventional loans (fannie/freddie loans). However, there are portfolio loans and other non-conventional loans that you can close in an LLC and may not require a full 20% down. Right now, we have portfolio lender that will finance up to 5 investment properties with anywhere from 0% down to whatever % down you want to put depending on your goals and financial situation. The best advice I can give you is to fully understand all loan options to make sure you are making the best decision to meet your goals. Of course, my team at Rent To Retirement is readily available to answer all your questions on this topic to make sure you are a well informed & educated investor!
We look forward to working with you!
Zach Lemaster CEO - Rent To Retirement
Some other good forum threads that might be worth reading:
https://www.biggerpockets.com/users/ZacharyCole/references
https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review
https://www.biggerpockets.com/forums/92/topics/1116050-a-huge-win-with-cori-from-rent-to-retirement
#3 Ask About A Real Estate Company ContributorPosted @Bernard Joseph S. Thank you for the mention! It's quite amazing to see how much progress you've made in such a short period of time!
@Benjamin Su I'm the founder and owner of Rent To Retirement. I have an excellent team, but I am also readily available to answer any questions you have. Feel free to reach out at any point in time. There are a lot of options on where to invest. My best recommendation is to create a clear strategy and criteria, and then find the location AND the team that fits those goals and then to take action. It's okay if you need to refine your criteria over time. That's all part of the game we we all continue to learn and become more savvy investors. We all have to start somewhere!
Here are some additional BP threads that may be helpful in your research:
https://www.biggerpockets.com/users/ZacharyCole/references
https://www.biggerpockets.com/forums/92/topics/765347-rent-to-retirement-review
https://www.biggerpockets.com/forums/92/topics/1116050-a-huge-win-with-cori-from-rent-to-retirement
#3 Ask About A Real Estate Company ContributorPosted ACV (actual cash value) vs replacement cost is what we carry 99% of the time. NREIG, Ross Diversified, Shelter are the top insurance companies we've worked with the past. Hope this helps.