All Forum Posts by: Brandon Rush

Hey Dovi,

Yes you would be able to purchase multiple properties without an LLC. This is very common for many investors. Unless you find some special financing, you will still need to put down 25%.I believe the Fannie Mae/Freddie Mac limit is 10 loans in your name.

Christopher, 

First bit of advice would be not to wait 5-10 years, start asap. The longer you sit on it and think about it, the more distracted and fall off track. My suggestion would be that you start off with a house hack. This is an easy way to transition into investing and has a few benefits such as:

* Minimizes your housing expenses allowing you to put that money back into real estate
* Gives you the opportunity to learn about investing while living like a tenant yourself
* You get to pick up your first investment property

I am sure there are few more I missed but you get the point.

Good luck and get moving!

Hey Itzel,

You can use the following which is similar to what I have used in past.

Hello,

My name is X and I noticed your house at (address). I was curious to know if you were interested in selling? If so, I would love to have the opportunity chat with you about possibly purchasing it from you. I can purchase with cash, so no realtors would be involved. I can also have most, if not all of your closing costs covered as well. I can be reached at (phone number) or (email address).

Thanks for taking time out to read my letter,

(Your name)

As for paper, it does not matter. You can use plain white paper. I have used yellow pad paper with lines. Helps me keep things a bit cleaner looking.

Good luck!

Hey Mike,

The fact that they disclosed this upfront is a good sign from them. If they are good tenants, let this one slide. Just make them aware by sending them the lease with the section highlighting the long term stay agreement. Somehow send it as a "soft" warning or strike one. It will let them know you are serious and will refresh them on the lease. 

Being too hard will result in unnecessary turnover and lost of rental income. 

Hope that helps! 

Hey Joel,

Hopefully I can provide some guidance:

1. how to apply for loan
Find a local mortgage lender. Lots of times you can find them right in your local bank branches. If there are investor Facebook groups for your area, I would post that you are looking for a lender to assist you with an F.H.A loan and I am sure you will get a few hits. You can also just ask any real estate agent you know and they should be able to refer you to someone.

2.is it possible to house-hack and use F.H.A loan as a first time investment?
Yes, many people do it for their first, second, third and etc! But, I would not recommend using FHA for your first time purchase if you can find a better option. Usually first time homebuyers are eligible for low down payment (5-10%) conventional loans. These kinds of loans still have private mortgage insurance (PMI) but it generally goes away after you reach 20% loan to value (LTV) on your property. Make sure you ask whatever lender you are using about first time homebuyer programs before defaulting to an F.H.A. Also, make sure you ask more than one lender. Some lenders are very lazy and never make an attempt to seek out multiple options.

3. What are some roadblocks I might encounter, and how can I better prepare?
Make sure you have proof of income, you may need to show 2 years of W2 pay. Also make sure you have enough money for the down payment (obviously). Having some money in the bank for reserves will better qualify you as well.  Also F.H.A has requirements on the type of property you are purchasing. It cannot have things like peeling paint, bad roof and etc. But if you do a 203k F.H.A loan, you can build the rehab cost into your loan. 

4. How would I assure cash-flow is still ongoing once I move out to a new investment?
This is an easy one and probably the most important. I would first start by running the bigger pockets calculator against the property to see how it cashflows without you in it. Make sure to use the numbers from the type of loan you are using. Example, don't put 20% down in your calculator when you are really putting down 3.5%. If the numbers meet your cashflow requirements and you believe rents will sustain or grow over the next year, then you are good. More than likely if the cash flow is good, you will be able to eliminate having to pay the mortgage yourself freeing up funds for the next deal.

I hope this all helps and very excited for you on your journey. You are taking the right steps. If you have any additional questions, feel free to reach out. Good luck!

Hey Scott,

I think it all depends on the property an obviously your strategy should be determined before purchasing the property. Here are some options:

* If the property is occupied prior to purchasing, you can have a contingency stating one of the tenants must be moved out prior to closing. This puts the work on the current owner.

* Assuming the tenant is on a month to month lease or lease ending soon, you could give them written notice that you will not be renewing their lease and they must vacate the apartment as of X date (based on your local laws). Probably not the most exciting option but, its an option. 

* You should not run into a situation where all tenants are on long term leases and you are planning to house  hack. This should have been determined before purchasing the property. If you do end up in this situation, then yes, a lease-ending buy out is an option. But, the tenant has no obligation to agree to it. 

Good luck!

I do not believe so and this would most likely have to be based on trust. The property will be in his name, even if you give him the money to pay for the down payment, fees and etc. You would have no legal control over the property. 

This would be possible with a conventional loan but I am assuming you are trying to go the FHA route for the lower down payment. I would caution going the route you are asking. Its all good with family until money gets involved.

Good Luck!

Hey Brett,

Unless you "want" to be an agent, I would say don't waste your time. If it is not something you desire or really want to do, then it will be just another job. I would say do what you enjoy for your full time work and invest the money back into real estate.

If you want to try out being a realtor but not 100% sure, you can always pick up the license, do it on the side next to your full time and see how you feel after a year. But I would not go 100% as a realtor unless you truly want it. 

I know that's not really a pro and cons list but its something to think about.

Good luck!

Marhe,

I would recommend searching in your area for a meetup, event if it is virtual. I would even search BP for some online meetups and listen in, even if its not in your area. You need to start by doing your own research and showing that you have done the groundwork rather than having someone walk you through the basics.  

Not to say it's impossible, but simply asking for a mentor will be tough. Also if someone was willing to off you help and asked you what do you know about real estate and why are you interested in real estate, will you have an answer?

Basically start by surrounding yourself with others and building relationships. It will all start to come together.

Good luck my man, you got this!

Looking forward to another great webinar!