Newbie from Rochester NY

[Gavin Spuck]

Hello Real Estate Friends!

I'm a late 20 something with an awesome wife as a business partner and soon to be 3 kids. I currently work as a General Manager of a restaurant, but I have much bigger dreams for me and my family. I'm still looking for my first real estate deal, but I'm getting very close. I've read a ton of books, have investor friends, and have almost all the tools in place to pull the trigger. I am very interested in Multi Units and Single unit buildings for buy and hold and Fix and Flips. Cash, as usual, seems to be at a premium these days. I look forward to talking with you all and learning as we go.

Cheers,

Gavin

[Thomas Franklin]

@Gavin SpuckIf you are interested in Multifamily Properties and SFRs, please consider the following. I am not a fan of purchasing a Residential Multifamily Property known as "House Hacking." If you are looking to owner occupy, you may want to consider starting out, with buying a Duplex, TriPlex, or a Four Plex. Assuming you have a respectable FICO you can buy, with a FHA Loan (3-5% down, a 30 year amortization schedule, and a residential loan rate). You live in one unit and let your tenants pay the mortgage and other property expenses. This will give you experience as both a Landlord and Property Manager. The downside is you will need to live there, for a minimum of one year (to satisfy FHA Requirements); AND because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC. What happens if one of your tenants has a slip and fall, on your property, or something else happens to them? You are on the hook and can be personally sued, for everything you own.

If you want to close in the name of a LLC, Mortgage Lenders will offer you Commercial Loan Terms (25-30% down, a 15-25 year amortization, and a ballon due in 5-7 years). This is what I am encountering, in the current Mortgage Industry.

If you think you will go FHA and then Quit Claim the property, to a LLC you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days. These clauses are contained, in all Promissory Notes nowadays.