All Forum Posts by: Matt Crusinberry

@Kathryn Bennett, Thank you for the clarity. I am working on the assumption that you bought the first and second home with no intention on renting it out. I would agree that off loading the first home is a good start, and looking to buy more value add properties is your next step.

1. You could off load both properties, or just the one, and look into house hacking, by purchasing a duplex, triplex, or quadplex. Either rent the second home out to build that equity or as previously suggested, sell it for some extra dollars. 

2. Look into hard money lenders, and find those value add deals. You will need to bring some money to the table, but it will allow you to buy in cash and refi into a better loan (essentially the BRRRR method).

3. Start looking into homes with seller assist, where the seller becomes the bank. Ask them to work with you, and tell them you need 3, 5, or 7 years to pay them out with whatever you can negotiate (i.e. like a balloon payment). This would give you more than enough time to meet that 2 year employment history, and you can refi it for a long term loan via a bank. 

4. I also recommend reading Brandon Turner's book (buying rental properties with no and low money down), and just continue to save as much as possible. 

I hope this helps, and good luck!

@Kathryn Bennett, I just have a few questions to get a solid understanding. From your current position, you have 2 homes correct? What is your intentional end state, you want to invest in more properties and build your portfolio or just get out from the ones you currently own? I apologize for my misunderstanding, but if you could clear this up really quick... I will give you my 2 cents. Thanks

@James Petry, I would say you're right on point. I do the exact same thing, and I believe that's why some people hire out for the process. And I don't mean PM's, I mean just people that do nothing but market and find you a tenant. So if someone else has some information on making it better, I am following this discussion as well. Thanks James.

@Jay B., As a suggestion, there are some expenses you may want to consider, outside of PITI and little maintenance/fixes you're pulling out (i.e. vacancy and capital expenditures). On another note, the interest rates are going nowhere but up, and I completely agree with Jaysen Medhurst. You may want to look into mult-family. Good luck!!!

@Christopher Oyenuga, If you're sure of your ARV and you didn't buy this property from the MLS, it shouldn't be too difficult to acquire either a refi loan or a HELOC. If you purchased it on the MLS, you may want to wait to allow the property some time before taking it to a lender to get your full value. In my experience, the bank will send out an appraiser who may value your property at or near your purchase price. While this is not always the case, especially when buying it foreclosed, but it sometimes happens. If it does happen, you will have to fight to prove that the appraiser did not value the property correctly.

To answer your first question, if you get a HELOC you most definitely will have a lender. To answer your second question, you can either get a refinance loan or a HELOC, and you're probably looking anywhere from 70-80% LTV. I would recommend speaking with different banks to see what they would require from you to pull your money out of the property, and what's the best deal you can get (with the most favorable terms). Good luck, and I hope this helps.

@Account Closed, I am not sure I follow you. I wouldn't buy turn-key properties, and for good reason. Also, it's a good idea to run a numbers before one purchases anything, no matter what strategy someone takes. I personally buy properties to turn them myself, and either rent them out or resale. I also buy commercial apartments, but turn key leaves too much money on the table for my liking. I wish you the best of luck with your turn key stuff Mike. Thanks

@Patrick Ellis, I recommend you take all transactions to an attorney, they are way more qualified in dealing with this. Meeting up with this individual isn't necessarily a bad thing, but I personally would be very suspicious. I recommend visiting your local real estate investors group and speak with these individuals, or look into other means of investing in real estate (i.e. 5 Ways Easily Invest in Real Estate Without Buying Property). Just remember the old adage, "if it's too good to be true..."Good luck!

@Kamenin Earl Banks, First off, welcome to the community! I would recommend that you continue to read as much as you can. Watch the podcasts on here or youtube, and just be that sponge. Also, locate your local real estate investor's group and start attending those meetings. Look into meetups.com and check for other real estate related groups and try to get into those meetings as well. Let me know if you have other questions, I would be glad to help. Good luck!

@Jose Garcia, I would never recommend using the "zestimate" for my calculations. I recommend using zillow to view the "SOLD" properties to view what's actually sold: how much, what size (sq. ft.), how many beds and baths, and to what extent are the big ticket items (referencing items that help sale the property, i.e. kitchen and baths) done? 

@Jose Garcia, If I were you, I would make zillow, realtor.com, redfin, etc... my best friend. Not only are they going to help you with the comp's, but you will be able to view inside pic's of other people's properties. Look at what has sold in the last 6 to 12 months, and move on from there. How old are their kitchens and baths, and to what level is it fixed up? What needs to be done to the outside to make it a little bit better than the neighbor's houses? Things like this will give you the best idea of where to go from there. I hope you find this helpful, and good luck!