Realtor · Waterbury, CT · Member since 2016 · 19 posts · 9 votes
Hello everyone I am new to bigger pockets and realestate. My brother and I are looking to invest in real estate. We are interested in buying and holding, and flipping.
Thanks :)
Real Estate Investor · Miami, FL · Member since 2010 · 939 posts · 739 votes
10y
@Lorranne JimenezHere is some additional food, for thought. 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. Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC.
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.
Realtor · Waterbury, CT · Member since 2016 · 19 posts · 9 votes
10y
of course Jacqueline that would be great I would appreciate the help I have a couple of properties I would like to look at some in waterbury and some in middlebury and I was looking to follow Brandon Turners advice and have a realtor add me to an MLS alert list for properties that meet my criteria do you think you would be able to assist me in these areas? @Jacqueline Carrington
I think what @Steve O'Meallyshould have said is that Waterbury is a difficult market. I don't know many investors working in that area, but that is mainly because I don't work in that area and most of the investors I know work or network in the same area as I do. The biggest feedback I get from Waterbury is that people don't know it well enough to feel comfortable investing there. It is no secret that Waterbury has some of the lowest values, highest vacancy, highest crime rates, lowest incomes, etc in our state. Anytime someone makes a list of cities in CT it tends to pop up on the bad end of the list. That tends to scare away a lot of investors. However, most investors will also agree that C and D class neighborhoods tend to offer opportunities for high returns because they are riskier. So, if you can use your knowledge of the area to your advantage you could find yourself with an opportunity to get high returns without much competition. Just make sure you educate yourself well and proceed with caution. Just my 34 cents. Good luck!
Realtor · Waterbury, CT · Member since 2016 · 19 posts · 9 votes
10y
@Daniel Raposo thank daniel for your 34 cents it is much appreciated I can use as much input as I can get from as many people as possibly. I do understand what you mean I love a challenge but I will proceed with caution and educate my self.
Hartford, CT · Member since 2016 · 11 posts · 1 vote
10y
Hello to my CT Realtors and Wholesalers from what i have gathered so far I found out that Bristol,CT and Manchester,Ct are the places where homes have been purchased for the six months. Even though our state has been shrinking due to families moving out due to the economy here. I hope this helps. I look forward to working with you all at some point and we can help each other out.