Bountiful, UT · Member since 2016 · 22 posts · 10 votes
Hey Everyone!
My name is Andrew McFarlane and I am a recent graduate with a bachelors degree in business management with emphases in both finance and marketing. I'm currently working as a financial analyst for a restaurant chain and have been enjoying the opportunities I've had to learn more about the industry; but, more so about financial modelling.
For the last few months I have been starting my research and study of real estate in order to build a portfolio large enough to get out of the rat race and build up a business for future generations in my family. As of right now, since money is fairly tight, I've been looking to start with a duplex and move up from there.
Looking forward to learning from everyone's insight on the forums and making connections!
There is also a pretty awesome loan program as a portfolio line with Mountain America Credit Union here in Utah. Non-owner occuppied loan with 90% LTV, 1.5% origination, little to no reserve requirements, 1-4 doors, max loan $417k, not conventional so will not affect your Fannie Mae limit of 10 loans and is a portfolio loan at approx 4.625%...NO MORTGAGE INSURANCE! Pretty sweet for a cash on cash return scenario.
@Andrew McFarlane hi Andrew. Welcome to the community! I am interested in doing business in the greater Salt Lake City area. Let me know if you would like to discuss further or even partner up.
Thanks for reaching out @Jared Carpenter! I would love to learn more about your plans for the area. I am quite new to real estate investing but I am wanting to start moving forward on investing in the area here within the next 6-12 months.
Thanks @Joe Au I will be spending a lot of time on here to keep picking up what I can to get started. Seems like a great community. @Joe Au
Joe Au I'd love to have more info about the REIA here in SLC. Are there meetings happening anytime soon? And what would it be like for a new real estate investor?
Jared Carpenter I work as a financial analyst for Cafe Rio Mexican Grill. We have 90 stores nationwide at the moment and growing. And yes I have been looking at duplexes at the moment to live in one side and rent the other. Then, use up money from that investment + paycheck income to start building up a portfolio of multi-family properties.
Very nice, I love cafe rio! I lived in SLC for around 6 years, went to school at the U and worked for Goldman Sachs up in research park for 3 years. Just moved out here to Seattle but I'm looking to invest in SLC. What's your budget like?
Welcome Andrew McFarlane I live in Centerville and I'm pretty new to the scene of REI. I would love to possibly partner up in the future, I'm looking to get started and build up some rental properties as well. Flipping seems like a good way to get some capital but I'm going to have to look at hard money loans as I don't have the cash.
hi @Brady Lee ! My mom lives in Centerville - how do you like it? What's the market been like out there? I hear Farmington has a lot of new developments coming in. Are you planning to invest in that area?
@Jared Carpenter Centerville is good but the market is tough right now for investing. House prices are pretty expensive for even "crappy" houses. I'm probably going to shy away from farmington as well unless I found a screaming deal. Some of the new developments are pretty pricey. Maybe if I was loaded haha that would make things a lot easier. I'm keeping my eyes peeled for good deals but they're tough to find right now.
@Joe Au Thanks for the info! What are the networking meetings like? Do you just come and go as you please and meet with other investors in the area? (or is it more of a formal event?)
@Brady Lee That would be great! Sounds like we are in the same boat. I'm short on cash but wanting to start investing in duplexes here within the next 6 months.
@Jared Carpenter As of right now I'm still looking at what my budget will allow. My wife and I are having a baby in a couple weeks so we will have to see how expenses go. But I agree with Brady. Things here in Utah have been hot. Good properties are up and sold in less than a week in some cases at high prices. But I'll keep you in the loop!
@Steven Bond Thanks for that article! That's precisely what I am aiming to do. The part I'm working on the most is learning about REI while keeping a pulse on the current market. I'm looking around at duplexes to see what is in the area. I hope to use these smaller multi-family units to start my RE portfolio.
There is also a pretty awesome loan program as a portfolio line with Mountain America Credit Union here in Utah. Non-owner occuppied loan with 90% LTV, 1.5% origination, little to no reserve requirements, 1-4 doors, max loan $417k, not conventional so will not affect your Fannie Mae limit of 10 loans and is a portfolio loan at approx 4.625%...NO MORTGAGE INSURANCE! Pretty sweet for a cash on cash return scenario.
@Jared, I just had a client close with this loan today. It is a great product. they used a HElOC for their down payment so essentially bought the property with no money down.
Andrew, it sounds like you have a great start with your current job analysis numbers so the transition to real estate shouldn't be to hard.
@Andrew McFarlane first of all congrats on the baby, my wife and I just had our first 8 weeks ago. It would be great to hook up sometime and just talk about things. I have a lot of ideas but not sure how to make them happen. Financing appears to be my biggest issue as I'm trying to find the best way to do this.
@Steven Bond I am new to the REI game and I've had loads of questions about financing. First of all, you mentioned that there is a Fannie Mae limit of 10 loans. As you acquire more and more properties/loans does it get harder to qualify for the next one since the debt to income ratio is higher?
Secondly, that portfolio loan from Mountain America sounds pretty amazing. Have you heard of a lot of people being able to do it? Is it hard to qualify for? Like I said I don't know anything about financing and that has been what has held me back from getting all in. Do these loans work for flips as well as rentals?
With convention loan, you can only have 10 mortgages under your name(it used to be 4). after you held the rental for 2 years, the bank will include the rental income to the debt to income ratio.
@Steven Bond & @Joe Au Thanks for the info! I'm also trying to learn as much as I can about financing to be able to get started ASAP with a fourplex or duplex. I went to a real estate information meeting last night (that turned out to be an MLM meeting....) that mentioned something about buying a home on a line of credit to help pay off a mortgage faster? (since paying with a line of credit pays principal first instead of interest?) Not sure I understood correctly... but is this true/possible?
Also Joe, I'll plan to be at the next meetings. I ended up going to a different meeting last night that turned out to just be a sales pitch for selling a Real Estate Education program... Disappointed but I picked up a few golden nuggets while there.
@Brady Lee I sent you a PM for us to get connected.
That's the Huddle meeting you went to, right? I went there last month and met quite a few people, and no one is selling anything. There's also a wholesaler meeting host by @Jeff Rappaport. And a monthly REIA meeting in Murrary.