All Forum Posts by: Brenden Mitchum

Hey @Aaron May

Sending you a referral right now to your inbox!

@Account Closed

Absolutely. This just means the lender will be looking mostly at your parents' financials for qualification. So if neither has a w2, that probably won't help. Also, if their DTI ratio is quite high, the qualified purchase price will be quite low. So really it'll just depend on how well they qualify for the loan.

Hey @Account Closed

If she does not have a full-time w2, then chances are she won't be able to qualify. Some lenders do count multifamily rent towards income but without that w2 I doubt it will help. I'm guess the lender will probably ask her to get a cosigner. Perhaps you could sign for her to help get her started? I recommend speaking with your lender as they will be able to give you definitive answers and tell y'all exactly what she needs to qualify.

If you have any other questions or just want to chat, please feel free to message me anytime!

@Jessica Sawyer

So I have actually never read Rich Dad but from hearing so many people talk about it I get the feeling it's more geared towards mindset rather than real estate strategies and actionable steps. For this you definitely want to read books like The Millionaire REI. Another good one for you would be Brandon Turner's The Book on Investing with No and Low Money Down. There is tons of information in there that you will find very useful.

Now, let's talk capital. Obviously, the equity in your home would be an awesome source of starting capital, and this is actually how many investors get started. That being said, if your husband isn't on board that is definitely not an option. So your focus right now should probably be getting him on board. Even if you don't HELOC or refi, you'll likely have a very hard time getting started if your number 2 is not on the same page. Do either of you have w2 income?

If neither of you have w2 or two years of 1099, then you will likely be out of luck for conventional, but still check with your lender to see what you need to qualify. If you are not able to refi/HELOC and you do not have other investments like stocks, 401k or IRA to use, then you will have no other option than to find OPM (other people's money). This comes in many forms, which Brandon thoroughly covers in his books. You could find a property whose owner is willing to carry the note. You could ask friends and family to invest with you. You could find a partner through BP or your local real estate group(s). There is also hard money but you will likely need some skin in the game (10-20% down) and this only works for rehab deals.

Don't let capital stop you from getting started though. If someone walked up to you right now and handed you $100k, do you have a solid deal lined up to put that into? If not, how long would it take you to find a deal? Set yourself up so when the capital does come (and it will), you will be ready to put it to work. 

Hi @Karen Margrave!

I have never thought of investing in this specific class, but I am very curious to know more. Would this be a parking garage specifically designed for self-driving vehicles? I do know that anyone looking to do parking garage developments in city centers will be out of luck when self-driving becomes established. However, parking centers outside of cities will be big. Is this what you are referring to?

Hey @Gino Gonzales

I've seen 1% of acquisition price as the general rule of thumb.

Congrats on the deal and keep up that hustle, man!

Feel free to reach out anytime if you have other questions or just want to chat!

@Corey Chonsky that's a fantastic point so what would be your advice be to @Christopher Stafford to take this into account? Would you just avoid these tenants or perhaps stick to year-long leases and not cut them a break if they want to move out early? Or perhaps just factor in a higher vacancy rate into your reserves calculations?

Hey @Christopher Stafford!

I'd be more than happy to walk through some calculations with you! It's actually quite simple when you break it down and you definitely want to understand every bit of this calculation before you start plugging numbers into any online calculator. So let me ask you some questions first.

1. What has your lender quoted you for your monthly payment? What is the total (PITI including flood insurance)?

2. How old is the building and what condition is it in?

3. Will you need to rehab at all or is it turnkey?

4. Clarify if both sides are rented out and exactly how much each is currently paying?

Hi @Terrance Holder, welcome to the BP community!

Only a CPA can give you this information as legal tax advice so definitely reach out to one. There are also tons of posts here on BP regarding LLCs. From what I have seen, the general consensus is that you do not need an LLC for your first rental and financing is trickier with an LLC. As far as I am aware, LLCs are used for their protection, not their tax benefits.

If you have any other questions, please do not hesitate to message me anytime!

Hey @Gabe Sirkin

Tell us a bit more about the property. What level of rehab is needed? What is the seller's motivation?