All Forum Posts by: Carlos Valencia

Hello Jared, 

There's many local real estate meetups in Seattle. My team and I are actually hosting one this week in the Bellevue area. If you are interested in attending I can send you the link to the meetup. Feel free to send me a direct message. You will have the opportunity to meet like minded individuals with all different levels of investing. 

@Albert Bui @Matthew Kwan

Hello Brody, 

Sounds like you need to plan ahead and have a high level mortgage planning consultation so you do not run into problems and lose money. You might find a property that is not even financeable using a conventional loan. Typically these type of projects begin with hard money and then refi using a conventional loan. This is why you need to make sure you review your file prior to even getting the hard money loan because what if you do not even qualify for a conventional loan then you'll have problems and might not have a net benefit exit strategy. Get pre approved first for conventional so you know if you can use that as an exit strategy but purchase with hard money. Another option you can do is buy using conventional first and as long as you can live in it you can rehab slowly if you have the time and use money for rehab from another source if possible. Happy to connect if you would like to discuss further. 

@Albert Bui @Matthew Kwan

Hello Loan, 

Its definitely challenging market up in the bay area. I live in orange county Ca and we have the same issue. I personally do not own any rentals here in orange county but we do have clients in that live in orange county and many of them have to go out into riverside county or San Bernardino county to be able to cash flow and just barely nothing crazy. Maybe 100-300 or they break even. The only way to find something that can potentially cash flow in our expensive markets is finding an off market deal that does not need a lot of rehabbing or if you can add an ADU in the back to help increase your rents. You need to make sure you run your numbers to see what your break even point is and when you will actually cash flow. Many people also rent out mid term or short term to increase their cash flow and rent by the room or unit if you buy a multi unit property. That also helps increase cash flow. Try to avoid renting out a single family to an actual family because you will limit how much juice you can squeeze from that property. Its always best to review your file with an investor friendly mortgage broker like ourselves to see what are your best options in terms of financing your next deal and get a high level understanding on how to enter a property and also exit a property. If you are new you might over see many things that can get you into trouble and lose money and then have a salty taste about investing and not want to continue this journey. Its not easy but its possible you just need to talk to people who have done it before and learn from their mistakes and help minimize yours.

@Albert Bui @Matthew Kwan

Hello Richmiel, 

As long as you are owner occupying your next home weather it be duplex, triplex or fourplex and you still have enough entitlement left to purchase your second home you can. Otherwise you would need to use conventional or FHA. Its best to plan ahead and review your scenario to see what is the best plan of action into getting into your next investment. Happy to connect if you would like to get a high level review of your current scenario and execute with confidence on your next investment property.

@Albert Bui @Matthew Kwan 

Hello Sara, 

If you have no monthly income how are you going to pay for the mortgage? Even with 30-40% down. I'm assuming you will have some money still left over after putting down that 30-40% down after closing costs. What is your game plan in terms of surviving and paying off the rest of the 60% of the mortgage? Unfortunately many lenders will see this as a red flag and may not take the risk to lend you the rest of the money even if you use stated income program or bank statement program but those are for self employed borrowers who have active income from their business but write off to many expenses that when filling their taxes their net income is really low or sometimes negative. Therefore these other programs are good option for those business owners. But at the end of the day there is active income to account for. In your case there is nothing other than just having your remaining equity and money left over from the start up. Unless you can show any type of active income from self employment, retirement accounts, disability income, rental income just something and enough to qualify then you will be able to find a lender that will lend to you. Only option for you would be DSCR loan but that is for investment property so unless you are just trying to acquire another property to build your real estate portfolio then that is the best option for you. The final option is just purchasing cash if you can find a property for 450k . The you drain all of your savings unless you have more and how will you pay your taxes and insurance? I would wait to start that new venture you mentioned and see how that goes because last thing you want to do is get yourself in a situation where you lose everything. Stay where you are and live below your means until that new venture takes off.

@Albert Bui @Matthew Kwan

Hello Brittane, 

You either will need to find other investors that will partner with you or if you have enough experience and the deal is good enough you might be able to get 90% LTV. Another option is to see if a private lender can lend you the down payment money as well. It will all depend on the deal and your experience. If you put yourself in the lenders shoes and think about the risk of the deal and worst case if the borrower defaults what is in it for the lender? If the lender keeps the property can they offload it for a quick profit or will they be stuck with a project that will cost them more money than what its worth if the deal did come thru. Things to think about when investing as its a two way street for the investor and the person with the money.

@Albert Bui @Matthew Kwan

Hello Daniel, 

Welcome to the BP community. I would suggest once you move back to the US try to attend real estate networking events where you will be able to network with all types of real estate investors from newbies to experienced investors. Another thing to keep in mind is to make sure you have an active income to help you have more options in terms of the strategy you will use to begin investing. If you can start now even better since you have your active income from being a professional soccer player. Not sure what you plan on doing for active income when you retire but also the higher the income the better. Otherwise with no income you are looking into just buying all cash or using a loan called Debt to ratio income to purchase investment properties where you use the rent to cover your mortgage but you will need to put down at least 25% down of the purchase price. Best of luck with your soccer season and real estate investing.

@Albert Bui @Matthew Kwan

Hello Kilroy, 

When it comes to appraising ADUs it will basically be left up to the appraiser. Unless you live in area that has many ADUs already built that have been sold with the home or as individual parcels. Even if you do find a lender that will use the appraisal that incorporates the ADU just know that the value will either help with getting a larger Heloc or it might not do much to help your case. You will have to pay for an appraisal to and depending on what the value is it will be up to you to determine if you want to proceed or not.

@Albert Bui @Matthew Kwan

Hi Cameron, 

My team and I host monthly real estate meetups in Bellevue. If you are interested in attending the next one feel free to DM and I can share more information about the next event. 

@Albert Bui @Matthew Kwan

Hi Mic, 

The amount of capital needed will depend on the type of strategy you are trying to use. Ideally tho it good to have at least 6 months of reserves in terms of overall mortgage payments. No matter the strategy so you can be ready in case anything happens where you lose your active income or a tenant moves out without notice whatever the case may be. Lowest capital strategy I would say is the house hack method. House hacking is when you buy any 1-4 unit property as your primary and rent out the other units or rooms to help cover your mortgage. The overall goal is to get enough rents to cover your mortgage and live for free. Also upon move out you can potentially cash flow. When doing this strategy you will can put down as low as 3.5% -5% down. You live there for a year then rinse and repeat. There is more things to consider when using this strategy its best to plan ahead and begin the mortgage planning as soon as possible so if a deal comes along you will be ready to execute. 

@Albert Bui @Matthew Kwan