New investor- Wilmington, DE

[Domanique Huggins]

Hello everyone!  I am interested in buying/holding in Wilmington, DE maybe a few flips but most interested in passive income. If there is anyone willing to sit down and discuss real estate I’d appreciate it! Or if anyone would be open to allowing me to visit a property currently being renovated that would be great! 

I have a couple of concerns, one being how have you all been able to find trust worthy contractors? I’ve heard horror stories and would like to be prepared as possible (I understand it’s all a risk). 

-I'd also like some advice regarding pulling from 401k to invest in real estate. My mother would be pulling 50k from her 401k for me to begin investing in real estate. My question for the seasoned investors is what would you do for the best return? I have my eye on a triplex, I'm thinking about using fha 203k Loan to fund repairs (it needs a lot of work). I'd put the 20% down to avoid PMI and use the remaining funds taken from the 401k to purchase and renovate additional homes.

Thank you in advance!

[Gavin Davie]

@Domanique Huggins - avoiding banks is my #1 goal! I'm also leveraging my 401k (via a loan to get my foot in the door with investing) - the easiest way to avoid banks is to find deals where the seller is willing to hold the note (aka seller financing) - here's where the seller acts as the bank (check out BP podcast #13) as well as here:

Here's a quick rundown: https://www.biggerpockets.com/blog/obtaining-selle...

You can use the 401k as a down payment and take out regular mortgages as well, you just need to find a lender that OK with that and make sure your numbers work.

If you structure it correctly it can be a win for you (small down payments/lower bar of entry to REI) and the seller, when acting as a bank, gets to benefit from amortization and make way more than they would if they outright sold it (and they avoid a decent chunk of capital gains taxes).

I'm also investing in Wilm DE - I have a few agents/contractor contacts I've developed that I'd also be happy to share, inbox me.