All Forum Posts by: Geordy Rostad

@Tamara Koonce

I think it's going to be difficult to buy and hold without going for something owner occupied first. A duplex maybe or something you can house hack?

Have you explored improving your credit and trying to save up some money to use as a down payment? If you are really serious about this, I have a couple more ideas:

1) Check out https://www.creditkarma.com/. That will not only let you track your score but it will also let you simulate the effects of different actions you might take to try to change your score. I have not used it myself but I have a friend who swears by it and it's helped him substantially.

2) Read Financial Freedom by Grant Sabatier. There are a lot of very accessible ideas in there to achieve financial freedom sooner than you might expect. There are some really cool extreme ideas in there too for ways to reduce your expenses WAY down.

@Tony Ardison

There may be lots of room for more mobile homes but does the zoning allow for it and will you have enough room for drain fields, enough well capacity, etc?

Hi @Dallas Dyson

I can't think of any reason a hard money lender would loan 100% on any deal. That would be them taking on ALL of the risk.

What would you bring to the table on this sort of deal? 

The lowest I've every heard of an HML going is 10%.

You might start by trying wholesale some deals to build up your cash reserves and experience. If you start bringing deals to investors, you'll eventually find the people who might be willing to partner.

@Andrew Ault

It's going to be really tough to be taken seriously in real estate at 17-18. Right now, you should focus on soaking up all of the knowledge you possibly can on the subject. Read more books. One book I REALLY like that isn't specific to real estate is Financial Freedom by Grant Sabatier. I wish someone handed me that when I was 17 (and that I would have been smart enough to read it).

Go to all the real estate meetups that you can and meet some of the local players. Check meetup.com and the Bigger Pockets events section.

When you turn 18, you can probably walk into Keller Williams and get trained up and licensed. Or maybe not... but it's worth a try.

Your best bet might be to find an agent who will take you on as an assistant for a couple of years.

Start saving away every dime you can get your hands on for now.

@Nick Ruffini

You forgot insurance. Also, you should have property management factored in even if you plan to self-manage. You want to make sure it still works if you have to step away from the day to day.

@Sean Murphy

I think you aren't finding a straight answer because there is more than one answer.

I believe you can use one of two methods to determine taxable gains - FIFO or LIFO

Here's an article from Zacks that can explain it better than I can. It's not specifically about the tax but more-so about the cost basis:

https://finance.zacks.com/determine-shares-sell-fifo-lifo-9766.html

Hopefully this helps.

@Jaromy Emery

Have you considered moving out of your single family house and renting something way cheaper and then renting out your house too?

I think I would be pretty hesitant to let that rental property go.

Can you refi it and get enough money at a cheaper interest rate to pay anything down (and let someone else pay it back)?

How about house hacking? Can you rent out a room or two and really juice your monthly income to start knocking those bills down?

Before you go and sell that rental, you should read Financial Freedom by Grant Sabatier. It might be just the thing you need right now. 

Selling your rental would be a huge step backwards IMO unless it was not cash flowing.

@Brian Warren

I mean when you get into portfolio loans that won't be sold to fannie/freddie. If the bank is going to keep the loan in their own portfolio, they don't have to follow fannie and freddie's rules. They can be a lot more flexible on the terms. The interest rates will be higher but not necessarily excessive. I wouldn't be able to get a 95% LTV non-owner occupied loan on a mobile home through any sort of conventional channel. I lucked out to find that offer but you could might have to talk to 30+ banks to find a deal like that.

This is the crux of what I'm saying. Keep talking to more and more lenders. Ask them about programs that might be useful for you. A clever mortgage broker is also very useful to have on hand for weird "out of the box" sort of things.

@Alex Verdugo

Are you planning to move in? If not, it's going to be tough to get a loan with $5k down.

You mean $1200-$1500/yr on insurance, not per month, right? I think that's the problem with your math.

@Bastian Kneuse

For estimating expenses to determine if something is worth offering on, 5-10% is fine. After you make an offer, you should get access to all of the account ledgers and then you'll be able to see the exact amount the owner has been spending on upkeep. You'll know by the inspection whether or not it was enough.