Fresh Goals (New Investor)

[Ben Pupa]

Good morning from the Seattle area. I've been hooked on BiggerPockets for over a year now. I've listened to at least 100 podcast episodes and have read several recommended books. Two huge milestones for beginners everyone seems to agree with are goal setting and making the first deal. I've put together some basic short-term goals to help me make my first deal, and I was hoping I could get some feedback.

The Seattle area seems to have the highest appreciation in the country right now, but the cost of living is high too. I moved here on a whim 3 years ago and was lucky to get a job with a nice salary. I bought a condo in Kirkland for below market value, but had to sell it within 2 years since I lost my job. I sold it for $200k more than I bought it for! I believe having this cash on hand puts me ahead of the curve as a beginner, however I no longer have a salary or a property. This brings me to the goals I've drafted:

I grew up in the Carolinas, and have selected Charlotte to invest in. My immediate goal is to purchase at least 1 SFH in northwest Charlotte (zip 28214 or 28216), and then begin working on a second investment if this works out. I'm interested in properties for around $100k (below market value) and $200/mo in cash flow. 

Since I have no stable income, I've found an investment loan which is based on the cash-flow of the property. This loan can be up to 80% LTV for a buy, or a 75% LTV for a refinance. They will only use the full appraised value for LTV if I've owned the property 90 days however, otherwise, they use 80% purchase price (LTC).

It sounds like I'm already set up to use the BRRRR strategy with my own cash. I believe the 90 day seasoning period should be plenty to make necessary improvements and have a tenant placed before the refinance.

My situation seems a bit difficult for a few reasons:

• First-time investor
• Remote investor
• Investor with no stable income (need a no-doc loan or investment loan)

But, i have cash!

I feel I should just push through the difficulties since everyone has them for the first deal (or so I've heard). However, I'm a bit scared of having most of my cash tied up in a home (even though the plan is only for 3 months).

What are your thoughts on my situation?

Do you have any suggestions of how to make things easier? 

Anyone in the Charlotte market have recommendations?

Thanks for your feedback.

-Ben

[Allan Smith]

Before you go any further with the BRRR strategy, you need to talk to banks to tee up that loan once you finish placing a tenant. A signed lease should be enough, but I can't imagine any bank jumping on a loan with a guy starting a new career in a totally new industry with no current stable income. Make sure they look at your tax returns and the whole 9 yards.

The other key thing is being a remote investor has everything to do with your team. You need your Core Four of boots on the ground: Deal Finder, Lender, Contractor, Property Manager (if rentals).

Even if banks won't work with you, you can flip a couple properties a year, and after two years, you have income in the business and banks will work with you. You can still leverage some by finding partners, private lenders, and hard money lenders.

Cash will be hugely helpful, but if you aren't investing local, it all starts with the team.