All Forum Posts by: Jaycee Greene

Hey @Danny Lyu. Did the bank give you any other terms (usually spelled out in a term sheet or LOI) relevant to its loan?

@Irma Leibas Many of my clients that do mid to heavy rehab projects have contractor credit cards from Home Depot or Lowe's, which reduces the amount of upfront capital needed for the rehab.

Hi @Shelby McKean! Based on the wording of your post, it appears you're passionate about Affordable and Workforce Housing, would that be true?

Hey @Keegan Felix! Welcome to the BP Forum! You asked a question about cashing out a retirement account to invest in RE. Have you considered using a self-directed IRA to invest rather than cashing it out?

Hey @Ali Valiahdi. Who are the "C's" in your CRM? I've created my own CRM in Notion, but my C's are developers, investors, bankers, accountants, and other people that work with developers/investors.

Hi @Anna Bee! While I have several clients that have many Section 8 rentals, they all live in the markets/cities where their Section 8 rentals are located. Section 8 rentals would be the last type of property investment I'd recommend for a 1st time investor and even worse, doing it from out of state. Section 8 rentals can be very Property Management intensive, and a "bad" tenant can cost you thousands of dollars in damage very quickly. 

If you still really want to invest in OOS S8 properties, I'd recommend looking to invest with someone who already has S8 rentals as a Limited Partner (LP) in a market you like to visit or have family/friends that live there, but I'd only do that with someone you know/trust.

Lastly, you may check out Mike ("Mr. Section 8") Curadossi's BiggerPockets profile: 
https://www.biggerpockets.com/users/mike04563#0

Hey @Culver Bradbury (any relation to Ray?). For the first and maybe the first couple of properties, I wouldn't worry about QB. Google Sheets or any kind of spreadsheet will work just fine. The key is to accurately reflect the type of income/expenses and the timing of everything.

Have you floated this idea past him? If he's OK with that, then that's very good for you.

But I'd be prepared for him to want something more. If I were him, I'd look out a few years and calculate the future profits/cash flow I'd be giving up and want to be paid something for that now.

I generally recommend aspiring investors to focus on a market or markets that they know well. Those are generally at least 1 of the following:

1) Where they currently live

2) Where they grew up

3) Where they currently have family/friends living (if not included in #1 or #2)

4) And as a last resort, an area where they like to travel/vacation frequently

@Rod Merriweather Getting a LOC (line of credit) secured by real estate from a bank is going to be tough as the line of credit is viewed as a short-term liability while the property is a long-term asset. Banks like to match short term assets with short term liabilities, and vice versa.

I don't believe that DSCR loans are "expensive", but they do require a more thorough underwriting and higher amount of financial documentation other private and hard money loans.

It generally helps to have a Fractional CFO or Loan Consultant (not a broker) that will work on your behalf to negotiate better DSCR terms and rates.