All Forum Posts by: Chris Sellers

Leon,

Thanks for the idea.  I agree with your thinking.  I'll see how easy it is and let you know.  Andrew said it's 1 piece of paper (hopefully an inexpensive one too).  

Great information!  Thanks Joseph Back, Mike Ko and Andrew Postell!

Thanks Adam!  I'll give BB&T a call.

Looking for advice doing a cash out refi on a property owned free and clear, titled in an LLC. Banks I've talked to suggest that I re-title the property in my name, do the refi, then transfer back. I'd rather not do that due to the hassle factor.

Property purchased with cash, rehab with cash, rented out now. Looking to get 75-80% of ARV (~$110k ARV). I have good income, excellent credit (~800) and 25 free and clear properties (credit shouldn't be a problem). This LLC is new, only 2 months of revenue records.

Thanks for your advice,

Chris Sellers

Stanfield, NC

Jasmine,

Congratulations on deciding to jump into the world of real estate investing!  Getting started is the hardest part.

You can truly learn what you need these days for deal #1 by reading a couple of good books and listening to BP.

I got started in my 20s (20 years ago).  I had a decent full time job and rented an old house.  An older guy from work had a few duplexes in town and suggested that I get a duplex, live in one side to help pay the mortgage.  I didn't know anything, but the numbers seemed right.   I paid full price to have a duplex built, turn key type deal.  The builder connected me with in-house lending for a bank, charging me higher than interest because I didn't know better.  I definitely paid for the education, but it all turned out well and my first deal was behind me.  I've done dozens since and real estate investing has changed helped me to build wealth and security.  I don't worry about retirement for sure.

That first deal details:  I paid $88k to build the duplex.  It rented for $525 per side.  I lived in one side, using the $525 to pay my $615 mortgage.  I got to learn how to be a landlord in a slow and easy manner.  I moved to a different state for work and sold the duplex 4 years later for around $105k.

Study deals, find a small one and get started.  If your lifestyle allows, do a house hack like I did.  

Good Luck!

Chris

Tracy,

Congratulations on deciding to be a real estate investor!  Renting out your house and moving to another is a common way to acquire properties when you're starting out.

There are a few more things I'd plan for on the expense side of things that will reduce your cash flow #. Vacancy, repairs and maintenance come to mind. You planned for them in your emergency fund, but put the estimate in your cash flow too. $10k seems reasonable as long as your place is in good shape (roof, HVAC, etc) and you have a way to manage it if it's over $10k (tap other savings, a HELOC).

Before you do it, I'd run a BP analysis on your house to determine if it's a good candidate for a rental.  If your house is worth $100k and rents for $1,600, it's a no brainer.  Go for it.  If your house is worth $500k and rents for $1,600, it wouldn't make sense.  You'd be better off selling it to buy 3-4 houses that rent for $1,600 each in a better market (with the same monthly payment as you have now).

Good Luck!

Chris

Peter,

27 days total (applied online on a Sat, closed on a Friday).  A few days probably waiting on me to get them documents (e.g. had to get a W2 from former employer).

Good Luck!

Chris 

Jamal,

USBank was ok, 90% loan at around 5% interest.  Mostly online / email.  Required 2 years of W2s, tax records, insurance records, mortgage records, called my work, sent out appraiser, signed several docs + a notary to my house for final docs.  No out of pocket for me.  

Good Luck!

Chris

Dimitri,

Age isn't a barrier to entry.  Just need some money (yours, hard $, family $, investors).  Listen to BP podcast #201.  Justin Stamper started at 19 (I think) with no money.

Good Luck!

Chris