All Forum Posts by: Cody Richard

Which method of creative financing is the best for a new investor? I'm sure it varies from person-to-person so I want to provide a few details of what I am looking for. Non-owner occupied loan that is either (1) a BRRRR investment that I can refinance to a conventional loan after repairs, (2) a conventional loan with a loan downpayment, or (3) another form of loan that has less money-down upon the initiation of the loan. I am open to going into the investment with a partner and losing equity in the deal. My main goal is to expand my real estate portfolio, but I do not have extensive financing to do so.

@Matt Vezina That sounds like a great option! Unfortunately, I recently bought my first home so I may no longer qualify. But I do know a few people that would benefit greatly from this information!

@Max T. Thanks for the reference. I'll reach out to Upen and ask for his input for obtaining a 5% down conventional loan. I do plan to make these properties owner-occupied if needed. My strategy with the FHA loan was to live at a property for one year and a day, then refinance and reuse the loan.

@Paul Defngin That's great insight! I have heard that you are not able to utilize the FHA loan twice at one time. It appears that I'll have to dig more into HUD 4155.1 4.B.2.d to understand what the "certain situations" are that allows you to potentially refinance and reuse the FHA loan multiple times.

@Max T. That's definitely a fair point. With the PMI and extra origination fees, I could see an FHA loan costing me more over the long-term. The reason I'm attracted to the FHA loan is because of the low down payment. The fairly low barrier to entry is definitely beneficial for me as I work to increase my capital!

As for your point on conventional loans, if I am able to find a 5% down conventional loan I agree that would be a great option! The lowest down payment I’ve come across up to this point is 10%. Is there a specific type of lender that would offer 5% down loans?

@Caleb Heimsoth BiggerPockets is a super valuable resource. I agree that going forward, this is a great community and I should work to be more active!

@James Wise Love this approach! Thanks for the advice James! I agree that storytelling is a powerful within social media.

@Josiah Halverson Hi! You may want to reach out to @Jeremiah Maughan at Vision Real Estate as well. While I haven’t worked with them directly, I’ve had the pleasure of meeting Jeremiah who is very knowledgeable and I know Vision Real Estate manages a large portfolio!

@Andrew Dean I appreciate the feedback! That's a great thing to consider, I did not know that. I've looked a bit into purchasing multi-family properties in Ogden and Payson. To your point, I agree that it will be difficult to find a property that has non-owner occupied rents equal to PITI.

@Seth Ferguson Appreciate the feedback! I like the idea of giving a quick lessons learned each day.