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

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

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

Hey all,

 I am on bigger pockets simply because I want to help beginners make that leap like I had to all on my own before I knew about bigger pockets.  A quick blurb on my experience : 

I am a serial House Hacker 

I am a Bank Manager for a large Bank 

My wife is a Real estate Agent specializing in Flips and Investment Properties

My friend and I have a total of 104 rentals in our area which are all self managed he owns the bulk of the 104 rentals

Also my father is an attorney and my mother is and has been a real estate agent my whole life.

I have lived with tenants , managed my own properties, helped grow and develop a property management team,  helped investors find deals,  helped investors get financing , and a bit more ! 

That all being said I have a bit of experience in buy and hold , financing traditional and creative , self managing, and MLS deals and using the MLS. I am still learning myself (always will be) but I feel like I can help people analyzing deals and making the leap into REI!

Please feel free to ask anything that comes to mind and I will try my best to answer all questions. 

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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.

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  • Jomaira Diplan
    Real Estate Agent · Jackson Heights, NY · Member since 2015 · 2 posts · 0 votes
    9y

    Hi, I have very limited funds and bad credit due to a short sale I had to do with my properties. I tried investing with my own credit, money, got taken advantage of by realtors and mortgage brokers back in 2006 and lost everything I had. Also because I was new and my lack of knowledge in real estate.

    I've recently been learning about creative/owner financing and would love to become an owner/investor once again. I was wondering if it's uncommon or even possible or do 100% owner financing deals here in New York especially in my area of Queens, New York?

    Thanks!

    0Reply
  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    9y

    @Jomaira Diplan

    Good evening Jomaira,

    I would say its is possible in our area but with the low inventory, most sellers are taking their $ and running! If you get to the sellers before they decide to list or sell to someone else, you have a chance. If you know seller financing in and out, I would suggest building a direct mail campaign.

    Best of luck to you!

    -Abel

    REbuild Team - eXp Realty5234 Reviews
    WebsiteView Page
    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Originally posted by @Jomaira Diplan:

    Hi, I have very limited funds and bad credit due to a short sale I had to do with my properties. I tried investing with my own credit, money, got taken advantage of by realtors and mortgage brokers back in 2006 and lost everything I had. Also because I was new and my lack of knowledge in real estate.

    I've recently been learning about creative/owner financing and would love to become an owner/investor once again. I was wondering if it's uncommon or even possible or do 100% owner financing deals here in New York especially in my area of Queens, New York?

    Thanks!

     I do not know queens well but upstate New York I have 5 fully owner financed properties . I know it's a bit more competitive down in your area so I would expand your target market.  Also make sure you are always talking about what you do and what you are looking for .  All my owner financed deals have come through networking . 

    0Reply
  • Jomaira Diplan
    Real Estate Agent · Jackson Heights, NY · Member since 2015 · 2 posts · 0 votes
    9y

    @Abel Curiel @Account Closed

    Thank you so much for your advice! I greatly appreciate it!

    0Reply
  • Steve Kontos
    Investor · Great Neck, NY · Member since 2016 · 679 posts · 467 votes
    9y

    @Account Closed

    I was interested in doing flips upstate.

    Would you be able to PM me and let me know what kind of spreads are typical?

    0Reply
  • Ryan SaullePro Member
    Flipper/Rehabber · Rahway, NJ · Member since 2017 · 137 posts · 123 votes
    9y

    Hey @Account Closed First, thank you for putting yourself out there helping out new REI! Great information on this post.

    Recently I helped a friend flip a few houses doing the rehab work along with my brother and we're trying to flip our first house on our own. I am from the Staten Island, NY area also willing to go to parts of New Jersey. I've been following the MLS for some time but I'm skeptical of buying off it, especially for my first deal. What would you suggest is the best way to find our first deal? Should I be pick a few neighborhoods and be driving around looking at every house? Should I start direct mail marketing? Should I be trying to find an investor friendly real estate agent to work with? If so, what is the best way to find one in my area? Any advice would be much appreciated!

    Thanks! 

    Ryan

    1Reply
  • James W.
    Mount Clemens, MI · Member since 2017 · 4 posts · 0 votes
    9y

    Hi Bryant, I own a 4-unit, 2-unit, and 2 single family homes. On my 4-unit I got a mortgage from an online mortgage company which valued the property at 90K in 2014. I feel that valuation is far below its actual worth because the housing market hadn't fully recovered. Based on a 9% cap rate it's worth $160K. What I would like to do is refinance to pull more money out of the 4-unit so I can pay off some debt and possibly invest some more. But most mortgage companies use residential comparables to determine the value of a property, not commercial cap rates. I know if I marketed this property based on the income and cap rate I would get close to that $160K number. So, 70% LTV would be $112K. I currently owe $60K so I could get $52K more out of the property.

    So my questions are:
    Are there mortgage companies who will use a property's cap rate to determine its value and loan money based on that value?
    Could you recommend a mortgage company that's good with income property financing?  I'm hoping to find one that will have no closing costs.

    My current mortgage has a $60K balance @ 4.875%. 

    Thank you for any insight you can offer!

    0Reply
  • Mei Kadichevski
    Rental Property Investor · Tel-Aviv, Central District · Member since 2015 · 3 posts · 1 vote
    9y

    Thank you so much for being there for us @Bryant Schur!

    I am a foreign investor, neither a US citizen nor resident. I have had a US bank account for just over a year and have bought a couple of rental properties with cash. My question is - What options would I have, other than hard money lenders, to get financing for further deals?

    You have my respect and gratitude,

    Mei

    0Reply
  • Jeff D.
    New York City, NY · Member since 2015 · 15 posts · 1 vote
    9y

    Thanks for taking the time to try and help educate us newbies @Account Closed. I'm located a little further downstate than you are, Westchester, currently looking to invest in small multi-family properties in the outer boroughs. I'll be sending a connection request, I'd love to pick your brain if you've got time.

    0Reply
  • Ariel Dorsey
    Baltimore, MD · Member since 2015 · 1 post · 0 votes
    9y

    Does any one have any funding resources that i can use? Im a new investor and have acquired my first distressed property that i acquired from a tax sale list. Since im new, all the hard money lenders ive applied to have denied me. Im getting so frustrated because i have no other resources to rehab this property. This house will be a fix and flip. I have a licensed contractor who is also a family member who will be doing the work for free. All i need are the funds to fix it up. Someone please help me. 

    0Reply
  • Jamison WiersemaPro Member
    Sterling, IL · Member since 2016 · 19 posts · 3 votes
    9y
    Hey Bryant! Currently in the process of purchasing a $48,000 single-family home in southern Illinois to be used as a short-term rental or a Plan B of long-term rental. What would be my best financing option? I love the idea of leverage and would like to use as much as possible. Thanks for your knowledge! Jamison W
    0Reply
  • Raymond Reyes
    Real Estate Agent · Orlando, FL · Member since 2015 · 55 posts · 22 votes
    9y

    HI @Account Closed, Thanks for sharing your knowledge. Do you know of any good banks or lenders in the Kingston/Newburgh area that offer ARM for rental properties?

    0Reply
  • Andrew Jordan
    Bismarck, ND · Member since 2017 · 11 posts · 4 votes
    9y
    Bryant Schur I am looking for someone to help me through my first deal. I don't have any money to put down but am interested in buy and hold properties. Not sure how familiar you are with North Dakota but I would take any advice or help you are willing to offer. Thanks!
    0Reply
  • Lisa Lavine
    phoenix, AZ · Member since 2016 · 72 posts · 12 votes
    9y

    Hi 

    I am finding it impossible to get this deal closed. My conventional loan bailed last minute. Where do I find legitimate lender for a manufactured home on a crawl \land . It has been re.purposed as a single family but banks won't do it. D.S.B will do it but owner is tired of waiting(another 30 days  )and I will have to have 30,000 down,which I do not have . We started this w\3%.i had that . 

    Did I mention this is my first deal ?

    Any recommendations.....Thank You Lisa from Indiana 

    0Reply
  • Lisa Lavine
    phoenix, AZ · Member since 2016 · 72 posts · 12 votes
    9y

    Lisa Lavine from Valparaiso, Indiana

    replied 1 minute ago

    110k on contract 

    10k repairs 

    $170k arv.

    Closing ASAP.

    Rent 1750

    0Reply
  • Scott Steffek
    Flipper/Rehabber · Crown Point, IN · Member since 2009 · 482 posts · 216 votes
    9y

    Andrew,

    I use to work for Bobcat, here in Chicago. If you live in Bismarck, I'm sure you know the company. Been to Bismarck many times. I hope things work out for you and if I can help you, PM me. Best of luck.

    0Reply
  • Lisa Lavine
    phoenix, AZ · Member since 2016 · 72 posts · 12 votes
    9y

    #Scott Steffek

    Saw your name ,Just wanted to say to all

    Scott is a genuine  guy ,who really 

    Goes out of his way to help others .

    0Reply
  • Cassandra Sifford
    Rental Property Investor · New Castle, DE · Member since 2016 · 376 posts · 158 votes
    9y

    I have been wanting to finance my 1st buy and hold investment property with funds from a HELoC on my primary residence.  

    I recently met with one realtor (also an investor).  After discussing my finances and future plans and goals, he advised me that he didn't feel that I was financially ready.  I don't have a lot in savings (which needed to include 6 - 7 months of mortgage payments for my investment property), I've got debt (credit cards, a fairly recent car loan, and student loans), and am about to have a baby next month. 

    I've got some access to funds (a few thousand from family) to put into my savings to show a lender that I've got enough to cover mortgage payments and some repairs along the way. I am very passionate about investing in real estate so the fund holder knows I'm no slouch on repayment and we have a great relationship! My main issue is that he advised that I not waste my money on getting my home appraised to receive the HELoC as mortgage lenders tend to look down upon giving a mortgage with a HELoC open as it increases my DTI ratio. I feel as though the HELoC is my only option in breaking into the field and I'm tired of just dreaming about being an AWESOME landlord ... I'm ready to go!!!

    Please give me your input as it is greatly appreciated!  I believe in myself and my parents (fund holders) ALWAYS have!!!

    Many thanks,

    Cassandra

    0Reply
  • Candy Fallon
    Orlando, FL · Member since 2017 · 1 post · 0 votes
    9y

    I have 110,000 cash in Orlando, Fl......  want to grow it... Was thinking of buying a house outright and renting it. Or are there more ways to grow income from that money? Thanks!

    0Reply
  • Donald Torrence
    Wholesaler · East Chicago, IN · Member since 2016 · 38 posts · 5 votes
    9y

    Candy,

    You can partner on some deals with other investors to grow your money.

    0Reply
  • Kevin Edwards
    New to Real Estate · Bronx, NY · Member since 2017 · 36 posts · 7 votes
    9y

    Where in NY?, I live in Westchester and want to leap just uncertain.

    0Reply
  • Christopher Seow
    Tampa, FL · Member since 2017 · 3 posts · 1 vote
    9y

    @Account Closed @Clayton Plank Thank you guys for providing your invaluable insight.  

    Totally new investor living in Tampa Florida.  Looking to diversify away from Bonds through real estate long term rentals for income.  The plan is to purchase one property (Single/Multi) this year, then expand with another next year.  

    1. What kind of property would you recommend to someone who is starting out?  Single Family or Multi?  (Currently I'm looking at homes in the area with an average price of 200K, but I find it hard to get the 1% return on rentals).

    2. Will a RE agent specializing in investment property be recommended?

    Again thanks for all the advice.

     

    0Reply
  • Ivy Hailey
    Investor · Baltimore, MD · Member since 2015 · 70 posts · 4 votes
    9y

    @Account Closed Good day Sir! 

    Just like everyone else, thank you for your time and assistance. My scenario is I will be purchasing my 1st property. I want it to be a 4 unit and yes I will be house hacking. However, a family member of mine stated that banks are not giving out FHA loans at 3.75% any more on multi-family properties, despite a 4 unit is considered residential. She stated that I would have to put down 20% or more for a conventional loan. She happens to be a seasoned agent. My question is are their banks that still give out FHA loans on multi-units? Also, is it wise to venture out of your local area and go national for lenders that would give out FHA loans on multi-units 4 and under? Capital one just told me 25% conventional loan. Thanks Bryant...

    0Reply
  • Account Closed
    Rental Property Investor · NV · Member since 2017 · 63 posts · 26 votes
    9y

    Hello Bryant,

    Fairly new to REI, so far I've bought a sfr in SoCal and currently house hacking, which covers pretty much all everything. So my question is, how do I purchase another investment property when I bought my house several months ago. From what I know you can house hack a multifamily property but in my situation I still have the house as my primary residence. I feel like I'm stuck, especially since SoCal prices are high and saving for a 20% downpayment and plus 6 months in reserve cash for an investment property May take a long time. Thank you for your time.

    -Rick

    0Reply
  • Justin Young
    Investor · Honolulu, HI · Member since 2016 · 362 posts · 93 votes
    9y

    @Account Closed I appreciate what you are doing here on BP and look forward to staying connected with you. Possibly, one day, I can provide the same value back to the BP community when I have the confidence. Until then, I'm learning and becoming better at my craft because of people like you willing to share their knowledge with us, so thank you.

    My question is, if I have a few friends or family that would lend me money to purchase a deal, what would I need to set this up so that everyone is protected legally? I've read about JV agreements, if that is the way to go, what type of attorney should I talk? Are they specialized attorneys or have certain certifications for this type of work? Would I need an LLC and make my friends/family limited partners? Or should I just treat them as a bank and pay them back with interest? Do banks allow this or is it viewed as "borrowed" funds so then I would need a document stating that I have no intent of paying them back which in reality I actually do?

    Sorry I know this is a lot of questions but I don't want my limited capital to prevent me from securing a deal in the near future. Thanks in advance.

    0Reply
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