Hello All,I am a considerably a new real estate agent that wants to start investing in multi-family units.

Lean what trigger are (one of my favorite's is Joe Sugarman's book by same name).Don't let your letter house dictate the lists.

I just wish I knew this going in so I would take that into consideration with my repair costs .

1) If you live in it (Ex. buy a duplex and rent out the other side) you an use can FHA loan at 3.5% down.2) If you are not going to live in it you will get an investment loan which usually requires a 20-25% down payment.Other possible considerations: closing costs (a few thousand $), repair costs, insurance/property taxes, Several months reserve loan payments

#1 will violate the due on sale clause and trigger an acceleration of the outstanding balance. #2 creates a second layer of ownership (via the trust) that is unnecessary if you are still using the LLC.

So, I did the following: - Gave her a lease option agreement, taking her 8% as Option Consideration, and taking out a "Note" on her car for another 12%.

I will explore more and take your advice into consideration moving forward.

But, as long as your clients get to keep the NROC (and buyer doesn't do major damage), that's not such a bad deal.For a house is listed at $329,900, I'd ask for $10-15K in non-refundable option consideration and then see if the buyer is still interested.

Which can trigger you to payoff the loan or switch you to a commercial rate. . .

I'll certainly take your words of wisdom into consideration.