All Forum Posts by: Alexander Felice

your DTI should improve as you go, not get worse.

it's grossly over complicated, and comes with minimal advantage 

overall it's a highly inefficient use of time and money.

you use hard money to buy a distressed asset that FHA won't lend on.

getting two loans is not ideal, but it will work. FHA is for owner occupied loans in good condition, hard money is for homes that need rehab.

if you can buy with an FHA loan then there is very unlikely to be any additional value to add and then extract. You want something in lousy condition that you can repair and that will require something with less stringent underwriting.

private money is a much better option but not as easy to obtain 

you can do this

I don't deed the properties back to my LLC, I just leave them in my personal name but neither process is difficult. The lender should be able to help you transfer to your personal name at the time of loan processing, quit claiming afterwards is even easier.

not sure about Seek, never heard of them.

CIX is a legitimate company for sure 

write up a business plan and send it to them, get feedback, iterate. 

BRRRR deals are rental deals. The difference is not how they make money but that BRRRR includes the rehab process.

buying distressed homes, rehabbing them and renting them is more work than just buying a rental with 20% down but the upside is far far higher. 

To paraphrase Nassim Taleb: the problem of modernity is the growing seperation of the legal and the moral.

you can tell something is immoral when you have to spend so much time working around the technicalities just to break the spirit of the rule. 

Its astonishing to me that some people would sell their virtue for only $800.

this thread will definitely be making an appearance on the "military to millionaire" podcast (a huge military real estate investor show) to discuss how and why it isn't appropriate to take advantage of service members. 

24k in fees? no that's not a good deal, that would be outrageously high 

Talk to a few other lenders, ask other local investors for recommendations.

any other lender should be able to beat that cost, easily

learn 

learn

learn

then when you're done with that, learn some more.

you should know that real estate is a people game, the buildings are the easy part it's the human network that you have to grow that takes time and diligence. 

get your financial house in order FIRST. If you are mismanaging your personal financial situation, adding real estate will only serve to compound bad decisions. you must know and execute proper personal finance before you can properly know and execute business financials.