All Forum Posts by: Amir Khan

Quote from @Mike Klarman:

Virginia, I would love to hear about a deal or two that you funded.  Be interesting to see the inner workings of the deal and how it was underwritten.

The big question in life, not to be or not to be, not nature vs nurture, no, what is the difference between a HML and a PML?

Answer is, could be nothing and another answer is could be everything.  There's lots of definitions and distinctions between the two that get thrown around.  In the end, it is up to how the investor themselves classify the lender.

HML is thought of being more "institutional money". I know of. very big HML that was funded by a billionaire with just 100 million to start, it was like 15 years ago and they are still around today and doing billions per year in loans. Now, this was all done with someone's private money so is it private money or hard money?

To me, PML is a friend of a friend or an Uncle or a co-worker's father.  There's some connection you have to this person with money who is looking to invest it short term and collect an x% return.  You and this private person you met hammer out the details of the loan at the kitchen table so to speak and you seal it with a handshake and your reputation that this Private Person already respects or whomever introduced has vouched for you.

But if a man opens a lending company tomorrow with 50 Million of his own capital and he checks in on the HML market to see what it bears and he copies his products and UW guidelines and now is he PML or HML? That's why the personal connection with the verbal deal and personal reputation on the line matters for me in classifying as a PML situation.

That is a very clear explanation of the difference between HML and PML. Unfortunately, I see many HML marketing where they portray themselves as a PML (whether purposely or not) confuses newbies...

Sent you a DM..

@Dana Wilkie your plan has some merit. Few things to consider, if you decide to move to a new home, would you not need down payment for that? 

Regarding renting your existing home, you have to look at it as a business. You will have income (rent), but then you'll have expenses: taxes, insurance, repairs, turnaround cleanup, eviction/attorney costs, vacancy factor etc. Would your rental income cover all of that, and if not would you have reserves on hand to handle that?

To get a figure on how much you can rent your home for, I think BiggerPockets will allow few rental analyze deal searches. In addition, you can use apartments.com and zillow.com to research rents for comparable homes in your area. 

@Andrew Liu Does your operating expense taxes/insurance? Regardless, you have to know the value of the property. DM me the address and I can tell you what the approximate value of the property..

@Andrew Liu you did not list the age of the house. If this is an older home, the 12 month expenses of $1430 does not appear reasonable (the actual may be much higher). Generally, never buy a house that is already negative cashflow. Do you know why is he selling?

You listed the house purchase price but not the value. If the house is valued $100K, why are you paying full price? If the seller owns it free and clear and/or has a lots of equity, see if he will agree to owner finance it to you for smaller down payment.

@Jonathan Chan I have a solution for your problem. Just sent you a DM..

@Robert Ok If you are a beginner, I suggest do not join a coaching program yet. Use BP resources to educate yourself as much as possible. Here are few suggestions based on your questions:

#1 Please share the best general coaching program that covers all the Real Estate Investment domains.

-  You will get very little out of a "all-in-one" coaching program. If you look at the most valuable programs, they focus one specific strategy which the coach has personal experience in with proven track record.

#2 What about the best focused coaching program that covers Wholesaling.

- Yes this is what you can enroll in once you've educated yourself using free BP resources.

Hope that helps, I am in Dallas also reach out to me if you need help in getting started..

Quote from @Greg P.:

Hi Everyone,

I’m seeking advice on how to get started in real estate investing with a decent amount of liquid funds available to deploy—roughly up to $750K.

Currently, I’m working in the corporate world but looking to transition into real estate as my next venture. My ultimate goal is to use this capital to generate enough cash flow to focus on real estate full-time. While I’m not in a rush, I aim to strategically invest and grow a portfolio over the next 3–5 years to make a smooth exit from the corporate grind, as reporting to an office daily has left me feeling burnt out.

What strategies would you recommend? Should I consider:

• Purchasing rental properties? (Best regions/areas for returns?)
• Flipping homes?
• Acquiring pre-existing rental portfolios?
• Investing in mobile home parks?
• Using leverage to scale, such as borrowing against this cash for larger down payments?
• Employing the BRRRR ?
• Targeting Section 8 housing?

I’m open to ideas and keen to hear what approaches have worked well for others who’ve found success in real estate. Any tips, strategies, or insights would be greatly appreciated!

Thanks in advance to everyone who shares their thoughts.

@Greg P. congratulations on making a decision to enter real estate investing. You certainly have enough liquid cash in almost any real estate investment arena.

Since you are not in a hurry (good thing), spend your time in education. Look at 2-3 different REI strategies that excite you. After some initial research, choose one and then go deep in it. This will give you focus which is much needed to see results.

Regarding which strategy to choose from the options you've listed (I've done all of those); that really depends on your goals. For example, is your goal primarily cashflow or appreciation? Therefore, write down your specific goals. For example:

- In 5-years, I would like to have a monthly cash flow from our REI portfolio to be net $10,000/month.

Hope that helps.. 

@Matt Wan you've received some excellent advise here. I will add, with technology, it is quite easy for overseas investors to invest practically anywhere in the US. In my opinion:

1. Decide specifically what are your real estate investment goals: property appreciation, cashflow etc.

2. Based on those goals, research online (or get ideas here on the forum about those markets). Decide on one market to begin with.

3. Find RE professionals in those markets. You will need a RE broker, property manager, and a lender at least. Do NOT find random people on Google, always ask for referral from experienced REI in those markets.

4. Do one deal, see how it goes. Adjust your strategy and/or your team as you go along.

hope that helps..

Quote from @Dominic Barese:

 Whats the point of the forum then? I thought it was to make connections and build new relationships,  that doesn't make any sense to me at all but OK I apologize for asking to break the rules of bigger pockets im just looking for help

I don't think there is anything wrong with asking for help at all! You are correct, otherwise it completely defeats the purpose of this forum. Yes, people can not post their services on the forum, but other investors can certainly reach out to you privately with their recommended referral. DM me and I'll be happy to refer you to my CPA who understand REI (she is not in Mass area though).