I've inherited a good amount of capital. I want to growth my portfolio quick. I'm looking to buy houses for rental or flips. How can I leverage my money and keep getting loans if I only make 50k a year?
Real Estate Agent · Portland, CT · Member since 2019 · 761 posts · 849 votes
4y
Hey Christian,
You could begin purchasing your properties in LLC's with commercial loans. Rates may be a bit higher than conventional loans but its way of getting in the game faster. Also, I would advise you be smart about your investments and not just buy them for the sake of buying them. Assuming you do not have anything yet, there is a lot to learn when it comes to investing and I can see how many people can get knocked out by picking up bad investments too fast.
When it comes to your flips, you should not have a problem there in terms of qualifying or purchasing them. If you have hard cash to purchase them, there is really no limit on the acquisition, it will be more on the refinance if you decide to keep them instead of selling them in the end.
Just continue to educate yourself and come up with a plan. It's only a matter of time before you are off to the races.
Investor · SC NC, VA · Member since 2020 · 1k+ posts · 756 votes
4y
Christian, if you’re already an experienced investor than disregard what I say.
I see many new investors fail tremendously simply because they don’t know how to determine value. Living in North Myrtle Beach, I see buyers buying houses that do not make money and sellers selling houses for far less than they should.
I urge you to get fully educated regarding operating expenses, operating income, net operating income, return on equity, capitalization rate, debt service, capital reserves, the difference between capital and maintenance expenses, and a host of other topics. These numbers help you go to the closing table with the knowledge to make it a winner.
A successful investment happens at the closing table.