All Forum Posts by: Zach Hubert-Allen

@Cheryl Jones First off, excellent post! A few things to comment on here. I work for a HML and know the space fairly well at this point. We do indeed check for a minimum FICO. In my company's case it is 550. However, people with a 550 FICO and 700 FICO are subject to similar interest rates/terms. Some HML's (mine included) lend based on experience in the REI industry.

Note: "Experience" at my company is based on titles held for investment purpose.

I have heard of lenders increasing their LTV or reducing points based on FICO but would argue this isn't common practice. All in all, HML's can operate very differently. I will echo your statement that FICO does come into play! It is also reassuring to us(the lenders) when it is in good standing. That being said, it doesn't always affect rates/terms. Thanks again for sharing the post! Think it is a good conversation to have, and one that I am asked frequently.

@Aaron Smith Have you considered doing a cash out refi with a HML?

Hey BP!

So I'm creating this post to get my feet wet and try and see how other investors in the SF Bay Area approach their valuations on properties in the area. I'm currently living in San Mateo but am interested in purchasing a duplex or multifamily home in the city. My plan is to live in one unit, and rent out the other while making improvements to both units. Below is the example property. 

http://www.realtor.com/realestateandhomes-detail/1...

I would live in one of the units and rent out the second bedroom in my unit, as well as rent out the second unit. 

Here are a few of my questions.

1. What would you offer for this property? How do you formulate your valuation of this property? 

2. What rent would you have to charge to achieve a positive cash flow?

3. How do you calculate the expenses of the property? 

4. The property looks nice outside of the kitchen and bathroom. Over time I would make plans to rehab both. Are you worried that because the house was built in 1947 there may be complications in the rehab? (Old wiring, outdated sewage lines, etc)

5. How would you formulate an estimation as to how much a rehab would cost?

6. Because I'm planning on living in the property, would tax benefits am I subject to?

Any information you have would be greatly appreciated. I am interested in house hacking and would love to hear more about strategies, experiences, general tips, etc. Thanks for your time!

Best,

Zach

Hey BP! 

I have recently completed all of my course work and am now ready to take the California State Exam. It appears that I have the option to apply for the exam and license at the same time. $60 for the exam, $240 for the actual licensing. Is this the recommended move, or should I just apply for the exam? Is that $240 refundable if I don't pass the exam?

Lastly, how did you all study for the exam? Any study guides or tips would be greatly appreciated!

Best,

Zach

Thanks so much @Patrick Robb ! I've been listening to a ton of them and will certainly look into these.

Hey BP!

Just wanted to learn a bit more about private lending firms. What are the advantages and disadvantages for going with this financing route? Which niches do you think best align with using private money lenders? (flipping, buy and hold, etc) Really any information you have would be appreciated. 

Best,

Zach

Thanks so much for all of the responses and warm welcomes everyone! I listened to my first podcast tonight and certainly learned a few things. Great learning tool! And @John Chin, I want to be a real estate investor because I think I have the mindset, character, and drive required to become one. I graduated from college with a degree in business administration so have a basic understanding as to what makes businesses successful. Obviously still A TON of things to learn but I'm hungry and willing to roll up the sleeves, learn from mistakes, and do the extensive research/financial analysis needed. On a more personal note, I was given plenty of opportunities growing up, which I think a large portion of my generation takes for granted. My family was of the middle class variety but I never "wanted" anything. I was fed, enrolled in sports(which can be expensive), my parents helped fund half of my first car, college expenses, etc. I guess what I'm getting at is that I want to give my children all of the opportunities and advantages that I had. From what I've learned so far, REI seems like the path best suited for me to accomplish that. Again, thanks for the response!

Hey BP!

Prospective investor here. I'm right at the beginning of my journey in REI! I've gotten some great advice so far and am thrilled to have you all as a resource. One of the best pieces of advice I have gotten so far is to educate myself! I'm currently enrolled in RE courses and will be a licensed agent within the next two months. I plan to couple my license with my investing prowess in order to grow my business and brand. I've heard the podcasts are great and I plan on listening to plenty of them on my commute from San Mateo to San Francisco. My question is: Which podcasts do you recommend beginners/someone in my particular position to listen to? General favorites would be appreciated as well. Thanks everyone!

Hello BP!

I am currently trying to login to my account on my android phone. However, it keeps telling me that the password or username is incorrect. I have logged into BP on my computer and my phone(outside of the app) and have had no issues. Anyone else having this problem or know of a fix?

Thanks!

Hey there everyone! My name is Zach and I recently graduated from the University at Buffalo. My degree was in Organizational Behavior and Business Management. After graduating from school I moved out to San Mateo, California to live closer to family and launch my career. I'm currently taking Real Estate courses and am looking to be licensed within the next couple of months. I'm incredibly interested in the investment side of real estate, and am really eager to learn all I can!