@Andrew Angerer we're soon going to be purchasing a primary residence, and hopefully be able to force enough appreciation to open a decent HELOC. That should help us move faster through delayed financing, instead of having to wait the 6 months seasoning. That plan is still maybe a year in the making, but I'm not on the "get rich quick" investment program
@Andrew Angerer deal flow, definitely the issue.
@Andrew Angerer Deals! Finding a cash flowing property in my market right now is insanely competitive. Most plexes bought over asking CASH! I’m currently working on out of state investing. Very tough to have so little control and rely so much on others.
@Andrew Angerer also, Dayton is a sick market I hear? Is it still a solid cash flow market?
@Julio Cabrera you don’t lack money you lack strategy.
@Andrew Angerer The only thing that’s stopping me from real estate investing is my credit history. I have a good score, but it’s hard getting lenders to finance me until my history goes a little longer. Another curve I have right now is that I am low income, but I work a lot of hours which make up for it. But I’m searching for a better paying job.
@Jim K. I thought it was funny.
Thanks. The OP is a nice guy and I was being snarky on his thread.
The road blocks are plenty when first starting out, i think one of the biggest is finding reliable contractors! It seems if they're not jacking up their labor costs they're just not showing up 3 days out of the week. But having said that, when i get lucky i find some really awesome people to work with!
Finding my first deal , it's really difficult in this market.
I know my son does that. He has a full-time gig doing that. He dropped all his undesirable freelance work, but he might pick up something like that. You can give it a shot. I personally don’t know anything about that type of marketing or technology, but my son is apparently pretty good based on the battle to get him when he became free and my personal knowledge that he’s good at whatever he does.
I’m just trying to figure out how I can get into the business with no capital. Good luck.
That’s what I’m looking for as well. Haven’t made the first purchase and we’re both teachers, so not much to spare.
@Andrew Angerer What ways do you find private/hard money to finance your deals? I’m very new and will be looking for wholesale opportunities and possible BRRRRs but could use some help getting in front of (virtually I’m assuming) those resources. Any ideas?
@Jonathan Hulen where out of state?
Originally posted by @Sunny Singh :
@Jonathan Hulen where out of state?
@Marcus Shlyk why not invest in other markets where prices still make sense?
@Brent Crosby I've seen hundreds of out of state investors come to OKC in just the past year! Purchases prices are good, rates of return are sold. Every deal I've seen off market hits the 1% rule unless it's in an A class area.
C class is most popularly pursued because the numbers are killer. On average they're 60-80k with an 8% cap rate.. after mortgage and all operating expenses, you can make a couple hundred a month. Here it's literally not where are the cash flowing deals, it's which one do you want.
@Sean Shapoori ever thought of going out of state? There are a lot of places where the numbers make sense!
My biggest obstacle right now is working with underwriters to get my rentals into long term loans and out of hard money loans.
For me, the biggest challenge is finding my next deal in my residential market. Properties are either typically over initially over priced or if they are not, competition is fierce. Finding a niche that is not overvalued is difficult in this market but it's not impossible because there are plenty doing it (many of them bigger pockets members)!
I know this is a few days late but I’m a brand new company and don’t have any business credit yet do you have any advice or ideas on how to get hard money loans for a company that’s just starting.
Financing: at least 20% down payment needed for my next purchase(s). I'm avoiding any hard money, HELOC, personal loans, or other creative financing at this point in the market where rental margins are thin. I think 30-year mortgages on a buy-and-hold investments are still a safe bet though. Just my personal opinions.
Financing. Finding a co signer.
I recently was presented with a salaried job opportunity, I took it, thinking this additional income in addition to the income I make from commissions in real estate would help me become more loan worthy. It hasn't, now the lenders are telling me they will only use the salary income to underwrite the loan. Completely disregarding years of commission income I have filed in the past. Thus forcing me to find a co signer.
I really cannot stand most banks I talk to. I have 750+ credit, almost 10 years of credit history, no late payments, no debt; I have flipped 3 houses using private money and made great returns on each flip. I have also 10 years of real estate industry experience. Yet banks will not lend to me.
@Marcus Shlyk I see. You like to self manage instead of utilizing property management?
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