Looking to Help Beginners ! (Investing , Financing, Managing)

https://www.biggerpockets.com/renewsblog/what-is-a...

OP

Upstate, NY · Member since 2016 · 200 posts · 277 votes

9y

@Tera Carter Honestly when you call your agent you will want to be a bit careful. Wholesalers and agents are kind of in competition with each other (not 100% the case but agents can get defensive) You really don't want to just find contractors you want to find the flippers and the ones acquiring the deals. While the contractor may be able to tell you who call, a good portion of the time they are just working on the job not purchasing the buildings. further more your next question is about short sale type deals and thats a topic that can not be answered in a post. I would recommend spending more time in the short sale. wholesaling parts of BP and connect with some wholesalers in your area. I would go in to more depth but I am not a wholesaler by trade (yet) and do not want to give you poor advice.

check out the ultimate guide to wholesaling https://www.biggerpockets.com/renewsblog/2015/01/3...

they talk a ton about how to start and has some great links

also check out the short sale page

Hope I helped a little !

15 Reply

Tera Carter

Radiologic Technologist and Real Estate Investor · Severn, MD · Member since 2016 · 57 posts · 31 votes

9y

@Account Closed

You have really helped me and thank you. I just understood what a short sale is... I will spend more time on this subject as well as other strategies.

OP

Upstate, NY · Member since 2016 · 200 posts · 277 votes

9y

@Tera Carteranytime !

Brian Linton

Toronto, Ontario · Member since 2017 · 7 posts · 7 votes

9y

Hey @Account Closed! Thanks for taking your time out your day to help beginners like us!

After i find a property that interest me and i can start looking for financing, What do i do? Do I just walk into my local bank and say this is what im looking at how much can you finance or is the some things i should do first prior?

5 Reply

OP

Upstate, NY · Member since 2016 · 200 posts · 277 votes

9y

@Brian Linton Great Question ! do you currently work and have income to show to help get your first property? If you do this is a great start because getting a loan will be much easier.

As a banker I would recommend speaking to a MLO (mortgage loan officer) at your local bank to see what kind of financing you would be eligible for and kind of feel the MLO out. I would do this even before you have a deal in front of you. I am not saying delay looking for deals but go see your banker while you look. MLO's typically can give a good idea of what you qualify for without even running your credit, futhermore I do not recommend running your credit until you have a deal you want to pounce on.

also make sure you know what you are looking for when you speak to your MLO . Are you looking to get a single family or a 2-4 unit or bigger? are you planning to move into this unit? these questions change the lending conversation and you will want to have a plan when you meet with a MLO.

One more small tip. I have found small banks and credit unions are a bit better to deal with when looking at investment properties !

20 Reply

Pao Yang

Real Estate Professional · Oak Creek, WI · Member since 2016 · 4 posts · 9 votes

9y

Hello,

I'm new to REI, just graduated from college, and fell upon Robert Kiyosaki's books. It lead me to start watching REI webinar, and and attend seminars. Learned a great deal, and they keep saying take action. Only problem is, where do I even start?! REI is and has so many strategies and topics, where does a beginner even begin to take action? I'm currently enrolled in Rich dad's seminar 3 day beginners real estate program ( Plan to stop due to high fees for the program). I've been reading REI books, mostly general strategies. And I've been analyzing properties mostly on the MLS. I'm trying to connect with local REI clubs, and meets with local BP, as well as local REI investors/agents. All of this is a load of great information, but doesn't really have a decent structure on where someone like me with no experience even begin. Any suggestions would help.

9 Reply

Benjimen Elliott Johnston

OP

Upstate, NY · Member since 2016 · 200 posts · 277 votes

9y

@Pao Yang First I will say get out of those classes they are IMO a joke and a huge waste of money. Honestly those things are just evil. Everything you need is right here. When I started right out of college like you I had nothing but a copy of rich dad and a hope it would work lol ! did you read Brandon Turners book on real estate investing ? have you read his ultimate beginners guide. I know its silly to plug this on here but they are real honest books and guides. His book on real estate investing is so spot on . anyways what are you looking to do ? buy and hold? if so SFR or Multi families? do you own a home ? if not do you plan on moving into your investment ?

9 Reply

Eufaula, AL · Member since 2016 · 14 posts · 2 votes

9y

My question is about approaching the bank on a bank owned property. I am working a deal with a partner to rehab an old hotel into apartments. I have worked all my numbers and the deal is only good if I can get the property for a fraction of what they are asking. The property is 3.4 acres with lake access and view. It has five buildings two of which need to be torn down and three which can be rehabbed. The property is listed for $259,000. Recently two acres on the water sold for just $60,000. The bank is giving no value to the buildings but I've been told it would cost $70,000 to tear down and remove the buildings. To be fair the bank property is in a great location, but to make any cash flow from the conversion we can't pay more than 90,000 and would like to get it for less of course. Bank says it has only been on the market 8 months and they have five years to Wright it off. Any thought on approaching this over time.

Brian Towner

Hampton, VA · Member since 2017 · 4 posts · 0 votes

9y

Bryant Schur Hey how's it going man, My question to you is that I am interested in buy and hold/ house hack. My plan is to buy a house at a good deal and rent out rooms to pay for my mortgage. Should I go about looking at "pretty" houses priced at 200-300k as long as my roommates can pay my mortgage and I get it at a good deal? Or go for something lower end in the 100-200k range. I plan on holding it for 5+ years. I know it all depends on the market and what not but how do I go about starting? Should I use my VA loan or a FHA loan or go for something that's not under me as in owner finance or taking that route? Very Respectfully, Brian

Benjamin Burket

Realtor · Canandaigua (Rochester area), NY · Member since 2016 · 87 posts · 37 votes

9y

Hi @Account Closed, where are you located? I love what you're doing here. I am 27, and my wife and I area really trying to get our real estate business off the ground this year. From your first-hand experience, would you recommend one of us getting our agent license?

OP

Upstate, NY · Member since 2016 · 200 posts · 277 votes

9y

Brian Towner so you are looking at a single family residence and to rent rooms out and not a multi family ?

Ryan Hilbun

Investor · Scottsdale, AZ · Member since 2016 · 40 posts · 19 votes

9y

@Account Closed In your experience, what are hard money and private money lenders looking for from a beginner investor? Does it help to have several deals with conventional lending under your belt before they will lend to you? Are they looking for a good business plan or just the deal you bring to them? Thanks in advance for your advise.

Ryan

3 Reply

Brian Towner

Hampton, VA · Member since 2017 · 4 posts · 0 votes

9y

Bryant Schur Correct sir.

Tavaris Little

Greenville, SC · Member since 2016 · 105 posts · 16 votes

9y

Hey Bryant Schur , what would be the best route to get into Real estate if a person has no funds to purchase a property other than wholesaling?

OP

Upstate, NY · Member since 2016 · 200 posts · 277 votes

9y

Benjamin Burket Hey ! We are on about 30-45 mins from Albany in a quit more rural area . I would strongly recommend one of you get your license simply just for the kickbacks when you close a deal and also the mls access . The one HUGE deal breaker with becoming an agent is you need to work with a flexible broker. Some brokers charge so much in fees to work for them it would not be worth it . Luckily my wife works for a great broker in the area that doesn't charge them desk time or any bogus fee she just pays her MLS dues for the most part . Anyways we house hacked our first few deals and between low down payments , sellers concession( money given by seller to buyer to help with closing costs ), and receiving commish at close we have had to put very little money down on those deals . On top of the cash the ability to be plugged into the community , and having mls access are great benefits . My wife ended up being a real estate agent full time . This was huge pro for us was it gave my wife the ability to be more flexible in her day to day so she could be available for the properties just incase. This turned out to be short lived since we outsource almost everything at this point but it helped for a while. Lastly we have stumbled upon a couple deals before they caught traction with the market . I just closed on a 2 family that we purchased the day it came on the market and I never would have known the house was coming on and have been able to get my offer out that quick if she wasn't the agent . I hope this helps I know I just threw a ton at you !

4 Reply

OP

Upstate, NY · Member since 2016 · 200 posts · 277 votes

9y

Ryan Hilbun hard money lenders definitely care about your track record and the actual deal . Hard money lender analyze the deal more than anything . I do personally believe In getting a traditional loan for the first deal or taking a bit less risky approach . Hard money lenders can be really expensive if you don't exit the property right away and the first deal could be a nightmare . I personally like the buy and rehab a house that you could exit by renting for a profit or selling for a profit this way you are not stuck . In my area flips just don't sell quick so most people buy a fixer upper fix it up over a year or two list it sell it and then move out and do it again . If possible I think something like that is more ideal for a first deal but my risk tolerance isn't as high as some others.

3 Reply

OP

Upstate, NY · Member since 2016 · 200 posts · 277 votes

9y

Tavaris Little I think of someone is working and has decent credit and no home they should try to house hack . Basically in this situation you could get a loan for a 2-4 unit building with very very little money down with an FHA loan with seller concessions . Basically this loan allows you to only put down 3% towards the purchase Price but you can request a 6% credit to help with closing cost so on a 100k loan you would have a 3k down payment but they would allow 6k to get financed and put towards the down payment and closing costs ! It's a huge help and this is how I started with very little dollars down . After this I recommend putting what you would be paying in rent away for the next deal!

12 Reply

Tavaris Little

Greenville, SC · Member since 2016 · 105 posts · 16 votes

9y

Bryant Schur thanks a lot

Kyle Guida

Landscaper · Bloomingdale, IL · Member since 2015 · 34 posts · 5 votes

9y

got any tips for me . I have 2 properties and now my DTI won't let get a loan on another . I am not "seasoned" landlord yet so that income doesn't count yet.

I'm self employed so much tax returns show lower then a normal person be ause my deductions and write offs . So I'm in a pickle . I always put down 20 percent or more . I have reserves for both properties as well

OP

Upstate, NY · Member since 2016 · 200 posts · 277 votes

9y

Kyle Guida most investors end up in this spot after a while. My advice is create local relationships on here or in a your local RIA. For me I was able to connect with local landlords and ended up doing an owner financed deal when I was stuck. You could also look for a partner who maybe can get the loan and you can help with capitol etc. when you network locally really only good things happen. Also you can have your agent scrub the mls for deals that have owner financing available and see if any of them interest you . Last but not least I have asked owners who have listed a property if they will do owner financing and surprisingly some are very open to it ! You just have to keep grinding and don't give up that next deal is out there right now !

Jon B.

Maspeth, NY · Member since 2016 · 75 posts · 62 votes

9y

Hi @Account Closed and thank you for offering your help with us newbie investors.

I'm looking to purchase my first property in the coming months, and have been looking at Orange County, NY.. In particular Port Jervis and Middletown. I'm looking to start off by getting a multi-unit property financed thru FHA, and living there for a year and then venture off into cheaper properties upstate in areas like Kingston, Albany, Troy, and Saratoga Springs. What areas of upstate NY do you have experience in? If you have any experience in these towns, would they be good for a rehab flip, buy and hold rental, or a BRRRR?

Also, a question that I've been trying to research lately is what fees can and can not be rolled into an FHA mortgage upon closing a deal? I have good cash reserves but I want my first deal to be as cheap as possible out of pocket so that I can ensure 25% down payment on 1 or 2 properties once the 1 year wait time in the FHA property is complete.

I have spent a few months doing a ton of research into books, blogs, podcasts, forums, and just crunching numbers to project cash flow after all expenses. I'm determined to succeed in real estate as it seems no matter which way the market and economy goes, there's money to be made in either cash flowing properties or a rehab flip.

Thanks for making yourself available to us newbies!

4 Reply

Dave Caccia

Contractor · Ellwood City, PA · Member since 2017 · 10 posts · 1 vote

9y

Jon, Thanks for offering your help. I to am new to RE as well , I do have some experience as owner and landlord, Currently have 2 SFH and would like to expand our business,

I recently found what in think is a pretty good deal in my area , and I also think it would be a good flip, It is a forclosure , I'm not sure how to proceed.

Would this be like any other deal, Because it is bank owned would they be willing to negoitate?

Also thinking of bringing a partner in on the deal and not sure how to structure the agreement, any suggestions.

Thanks .

Ian WalshBusiness Member

Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes

9y

Always good to have experienced people in the mix.

OP

Upstate, NY · Member since 2016 · 200 posts · 277 votes

9y

Jon Brandt I am going to private message you. Those areas all have different advantages but I consider them all investable areas ! I really like this area a lot ! I will PM you shortly .