All Forum Posts by: Cheryl Packham

Hi Jake,

If it were me I would keep doing what you are doing until the 9-5 gives you an ultimatum.  I prefer security while taking risks, personally.  If you are able to manage all of it without to serious of a burden on your personal life, then I say keep doing it all.  I am sure you will hit a point where it makes sense to drop one or the other but if you can manage to secure the two years of commission and rental income and maintain your day job, then you will be that much further ahead when it comes time to be a full time real estate professional.  If your full time job was getting in the way of potential deals and you were missing opportunities that would increase your income beyond what you make, then I would recommend pursuing that and dropping the day job.

Hope that helps.

Cheryl

From my perspective and the information provided it seems that the best option would be to take the 15 year at the 3% interest rate. Considering this only makes your payment $30 more per month then you are currently paying, you will increase your equity dramatically until you decide what you are going to do in the future.  

Regardless of the education path you choose, the real issues lies with a persons ability to execute the knowledge they have.  I know someone who did fortune builders mastery and 2 years later they are doing 30 flips a year and everyone in town seems to know who they are.  Yet I have met others who have done other mastery programs and have yet to pull the trigger on their first property.  

So, as with any educational decision the first step is committing to your career choice and then determining what level of education you need to reach the level of success you have decided you want.  Just like with any career, sometimes formal education is imperative to knowledge and reputation.  

Do you feel like your credibility package will look better if you complete a mastery program from RD or FB?  Does it help you grow you network?  Do they have tools available to build you business that you do not have to invent yourself  or pay someone else to do?  What is it that you are looking for in an education system?  Will your investment in your education give you the returns you are looking for?  

The one thing I am certain of, is no matter what you decide there is absolutely no system "to get rich quick and easy in real estate", while it may happen from time to time, there is no sure fire system in existence.  If you are hoping these forms of education will teach you a heart ache free way to get other people to give you their money so you can get rich on real estate without having to work hard, then do not waste your money on that and stick to a regular job.  

I am sure there are others who have more experience with the contractors in the area. I know that most are very busy with commercial large scale jobs, even in fort collins. They don't see to have time for little ole full scale remodels of single family residences so they bid them high, very high. However, that being said I would be interested in discussing further with you what you are trying to do and see if I have any ideas for you. I have hosted a few REI meetings here, but we do not have a set schedule. Now that fall is here, I do plan on having another get together but they are very informal and mostly just for networking. I know that Fort Collins has a well established REI meeting, however, I have not attended. I know that @Corey Loghry has been to the one down there, and perhaps would have so more insight on local contractors in the area.  

Hi Luke,  I wish I had better information for you, however Cheyenne is a tough place to invest in even if you are local.  Contractors are booked out for months and real estate investor who are friendly to new investors are difficult to find.  Chuck West at #1 properties specializes in investment properties and would be a good point of contact for you to buy a multi family property.  Welcome and good look.  

Banks that sell to Fannie Mae cap out on 4 financed properties in your name, to do a cash out refinance (financing any more than your original mortgage). If you own properties in an LLC they cannot do a cash out refinance. Financed properties will include your primary residence. But there are other options for refinancing. That is just what I learned today sobfeel free to fact check.

if your bank is selling to Fannie Mae: you can only do a cash out refinance if you will own 4 financed properties or less. You can only take out more than the purchase price if it is owned for one year or longer. The more properties you own the less loan to value you can get. If the property is owned by an LLC you cannot do a cash out refinance. I just got this information today from a local bank. Please fact check me but this is what I was told.

@rhett may I ask your rationale for doing an LLC that is treated like an S-corp?

@Rhett P.

It is very typical for most lenders to require a seasoning from the original purchase. This is due to the amount of mortgage fraud and bad deals that have happened in the past.  Even if your daughter would have purchased the property herself with cash and then attempted to refinance it, she would have had to wait the seasoning period.  This is very standard.  I am doing a conventional refinance on a cash purchased property right now and the lender wanted closer to a year between purchase and loan.  The purpose behind this seasoning period is to prevent the banks from getting stuck with bad debts based on tricky financing, selling, or buying maneuvers.  

Hi @Corey Loghry,

So glad to see you on BiggerPockets!!!  

Welcome!