All Forum Posts by: Franco Li

If you get a PM, you are an investor.

If you self-manage, you are a landlord.

OR, really depends on how lazy you are...

I use Allstate and my agent usually gives me a good price, but thats because I have multiple property insurances through them, along with life, and auto on several cars. They really treat you well if you have like 10 different products with them! Guy sends me holiday and birthday cards haha!

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If my property manager doesn't "make ready" that would be a problem....

I've never heard of anyone waiving an inspection clause because of the competition. Even in the NYC market, as overheated as it is, the clause is there and good luck selling if you are a seller and want to remove it. I will also note that there is always a "sold as is" type formality though. Regarding your situation, I'm afraid you can't do anything about it but live with your contract. Have you discussed this in detail with the seller?

If they deny you from that, it's like saying self-employment income doesn't qualify. Shop for other lenders, there are tons of people out there dying to put cash to use.

Anyone who tells you to wait is screwing you over. The benefit of real estate investing versus an index fund say, is that real estate is more of a business. As long as you handle the business appropriately and with a conservative eye, you can hedge a lot of risks. Meanwhile, in an index fund you're subject to market and other microeconomic factors. In saying that, don't let the opportunity cost stack up, find a good deal and go for it!

First off, don't do it! As you suggested, you already have the geographical risk where PR is already defaulting on their municipal debt. If they aren't bailed out, they would need to reconfigure their property and income tax structure to pay off further debts. This will likely mean rising property taxes. Moreover, I don't know too many people who would go to PR and rent a vacation home given the numerous hotel options. Seems like the demand is low and rental rates would be questionable? Good luck!

Just to be clear you can probably still get an IO through a public lender. Now to answer your question about the purpose of getting a private loan first; many borrowers don't have the liquidity or reserves in place to get a proper bank loan and pay the 20% down payment. A private lender can take on that risk and give you a higher interest rate for a shorter period, which will allow you to buy your target property and even rehab it. You can then go to a bank and seek refinancing after a reappraisal and pull your equity out. There is a ton of information on the BRRRR strategy you should check out to understand this better. Good luck!

I've never done this but best advice I've ever received on terrible floors is to just cover the sucker up with carpet haha. I think it might be cheaper too! Good luck!