All Forum Posts by: Eric Schultz

Brian Sanchez I’ve heard Ridge Lending Group lends in all of the “investor-friendly” states. They have a 30-year HELOC product with no principal payments due for 10 years. 80% LTV on primary residence 70-75% LTV on investment property

We do electronic signing. The tenant initials each page, not each clause. We encourage them to thoroughly read through the leasing documents.

Cole Black As long as you can show the listing agent qualified math on how you arrived at your offer price, it is what it is. Just telling them you made a “rule of thumb” approach isn’t serious enough. Most properties are meant to be owner-occupied and the rest are meant to be rentals. It’s just a numbers game given current market conditions.

Thuy Pham-Satrappe Having an umbrella policy these days is really a no-brainer. Not having one is similar to making a decision to not have health insurance for yourself and immediate family. Especially if you own rental property, an umbrella policy is a must. You might look into insuring your primary residence and rental property with the same insurance company to achieve discounted insurance costs as you build your portfolio.

Timothy Joseph Rental property investing typically pays 5 ways: 1.) monthly cashflow 2.) appreciation 3.) tax benefits 4.) loan pay down by tenant 5.) inflation-profiting With a condo investment, you might be forgoing #1 and #2 in the immediate term. The last 3 would still be to your benefit, so you might make your decision based on opportunity cost of your time and money. You might be able to be paid all 5 ways by investing in a property outside of your local market. If you go the condo route, make sure to have at least $5,000 in cash reserves per property before you jump back in.

Jeremy Karja If someone is going to pay full market value for your house, there is a good chance they will want to be an owner-occupant. Someone looking for a rental property is going to make a different offer (probably lower) as they will need to consider repairs, capex and all other things impacting their net cashflow on the investment. Some lenders will allow you to go up to 85% LTV on a primary residence HELOC, depending on your FICO score, DTI, other investment holdings, etc. If reducing your commute time is priority, than you wouldn’t need to be concerned with drafting up a lease agreement with the buyer anyway. Rent closer to school or work.

Benny Morfas Don’t do it. If you are going to invest out of state, you might want to target B-class properties in the Midwest or Southeast to gain some experience. The price point will be higher, but it should come with much less risk on your first rental property. Also, don’t forget that the property manager will be your most important team member, and many of them will not taken on D-class properties.

Jian Guan I recently closed on another investment deal, and now I’m back to accumulating cash. The difference is this cash is earning 10% annualized return in one of my “opportunity funds” and 7% in another.

Shaye Mora If you are achieving 2% or better in the investor-friendly states these days, it probably comes with higher vacancy over the long haul and/or is C- or D-class.

Daniela Skrein Congrats to you and recognizing that you have a newfound duty! With some diligent self-education in real estate investing, you should be able to turn that $1M into $100k - $150k+ of passive annual income within 1 - 3 years. You now qualify as an accredited investor, so maybe look into private placement offerings (likely SEC Reg D 506c) with a couple syndicators / operators after due diligence. Let the experts execute while you share in the profits and tax benefits, passively as a limited partner. It is not uncommon for these deals to produce 20% - 30% IRRs.