All Forum Posts by: Chris Coleman

@Christopher Nemlich

Have you determine what your DTI would be if you took the 80-100K loan?

Once you do that, as @Chris Mason said, contact an investor-friendly lender and explain to them your plans.

If you go Fannie/Freddie, then you might be able to use the same lender for the Refi on your primary and the investment mortgages.

Also, find a Lender who will do all the Closings at one time. I’ve done that before, all Closings simultaneously when purchasing multiple properties at once.

I can give you a referral if you would like.

@Sean Pan

Check out Multifamily Investor Summit...MFINSummit.com

@Cory Lucas

I know this doesn’t necessarily help you on this first one, but once you get several properties and experience under your belt, that will generally help as well with bankers.

Especially with local banks and portfolio lenders, they are much more willing to talk and work with you when you have a good success story to demonstrate that you’re experienced in investing and managing rentals...and when they see that you are serious about real estate investing long term, so you’re going to do these deals and make them work whether they come along and partner with you or not.

@Akeem Moreno

First, the good news...you have your goal. However, I suggest you get a little more specific than “a 1-4”. Do you want a duplex or a quad? Make a choice, and set that as your goal.

Next, what is your market and sub market? Are you looking locally in the city where you live now, or are you planning to move, etc? And within the city, what neighborhood or communities do you want to invest in? You need to identify the areas where you want to invest. And since your plan is to live-in at first, then you also need to consider where you are okay living for at least a year.

Third, decide your investing strategy so that you can determine the type of property you need to purchase. By that I mean, are you looking to do major renovations? Minor renovations? No renovations at all? Are you looking for a property that is completely vacant or already has Tenants? These are all things you need to decide, based on your interests, skills, time constraints, resources, etc...

Next, get your funding lined up. If you already have cash, then great. If you need a loan, then talk to Lenders and get a good estimate of how much you can borrow. Based on your strategy above, your own money, and your credit, can you get conventional loans or will you need to seek out private lenders? Determine these things and get your funding lined up.

Once you have the above steps in order, find an Investor-friendly realtor and start looking at properties. Or again, depending on your strategy above, connect with Wholesellers and start seeing properties.

When reviewing properties, I highly recommend you analyze the numbers first and make sure that it cash flows according to your goals. If it does, then go see it in person.

@Prashant Sheth

I’m neither an attorney nor CPA, but in my experience I have moved assets, including real estate, among various business entities, trusts, etc. In my experience, if you own both LLCs, then you’re not “selling” anything. You would be transferring the asset (and Title), and basically just taking money out of your right pocket and putting it into your left.

@Micah Anderson

You do not need to be an accredited investor, but you do need credibility. That is, you can source and identify a good deal, analyze and underwrite it, execute to make the plan work, and take care of your Investors.

If you have your own experience and track record as a real estate investor, then great. If not, then partner with someone who brings the experience. Not only for their knowledge and expertise, but also for the credibility they bring to your team.

This is true not just for credibility with passive Investors, but also for gaining credibility with Brokers, Lenders, Property Managers, and others whom you need to be successful.

@Yazan Dabbagh

This one can be tough because it’s really so market dependent.

But a few things to consider are:

Employment growth in proximity to the surrounding area. Are major employers moving in and building up in good proximity to the neighborhood, or are they moving away? Also the type of employers...are you seeing more white-collar professional jobs or more service related jobs?

Retail development. Are nice retail establishments moving in close proximity? If so, what kind? Are you getting Chipotle or Taco Bell? Shakeshack or Burger King? You get the point. What’s happening to the retail plazas in the area? Are they being renovated and upgraded?

Also, you can review local news and look at the City/County plans and meetings over the last few years and see what’s happening in terms of transportation, developments, schools, etc.

@Sachin Maskey

This will depend on several factors, including your investing goals, risk tolerance, what you consider “long term”, and the details of the deals themselves.

However, for a lot of real estate investors, especially here on BiggerPockets and myself included, cash flow is always the top priority.

Properties in that Class A area may be appreciating today. But what will happen to that appreciation when the market softens or begins to decline? You can lose appreciation fairly quickly in a downturn. But even when that happens, you can still be collecting Cash Flow from rents every month, paying for your expenses and mortgage, and making you profits.

Rule #1 - invest for cash flow.

@Ray Trounday

@Dave Van Horn could help with this one.

@Jacob Lamar

Memphis is a great market for out of state Investors, especially the suburbs to the east. I currently own 5 rentals in the Memphis suburbs.

You may want to consider turnkey properties. There are some great turnkey companies that operate in Memphis, and you can scale to 5 properties fairly quickly.