All Forum Posts by: Grant Shipman

There's an addiction new or wanna-be investors have called education addiction. They drink books, articles, podcasts, classes, etc until they have a blurry-eyed hangover and then they repeat. I recommend mastering 1 book instead. If you were to master 1 real estate investment book, or recommend mastering only 1 book to an aspiring/newer person, what book would it be? This is in regard to buy-and-hold, b/c this is the passive-income ideal for REI.

@Ace Kaspar nope. I can't say you are wrong, b/c instead of giving your best guess you just disagreed.  There are two key ways Vanilla House Hackers are missing out- you actually hit on one way they miss out in your last p-graph. 

All you house hackers out there.  Usually the strategy is buy a house oncer per year with primary residence low down payment, occupy it for the first year and rent out the bedrooms to cover the mortgage, and then move-out and rent it to someone.  

Anyone out there know the ways a house hacker who does this is missing out?  I mean they are winning b/c house hacking done right is always winning....but still they are missing out. 

Ready....GO! 

Yes, simply have it documented according to your mortgage brokers requirements. 

@Benjamin Gross Great to read! You're in an excellent place. I'd recommend the following to you:

1) Limit Your Advice: You're rather have 1 real estate investing book mastered than have read 5 books (or 100 books), so I recommend choosing what/how you will learn, and then execute.  After executing you can learn more along the way. 

2) Rental Properties: This offers passive cash-flow and other benefits. Start here and stay here and add other strategies if you want along the way.  When life throw your curve balls or wonderful opportunities, you won't have to miss them if you are financially free from your rental property cash-flow (I say this from experience, as I travelled Europe w/my wife and 9 month old last year and we spent months away supporting my dad who got diagnosed w/cancer). 

3) Relationships: Lots of people are willing to help (that don't know how).  Few people who know how are willing to help.  Find someone in the 2nd group, even if you need to pay them, and thank yourself later. 

congratulations on your two houses so far and moving on to a third! The benefits of using a MB includes the following and I'm not aware of any downsides: incentivized to work hard for you, have knowledge of many loan programs/lenders/etc, and work outside of normal business hours. I guess the only downside is a mortgage broker will not be able to get you a portfolio loan, but an FHA is almost always going to be a portfolio loan. I like your plan of doing a low down payment and keeping money in reserves. It fits my Beyond House Hacking strategy I've used for years with a lot of success. Keep rocking it!

In my opinion there needs to arise a gold standard in coliving property management.  RBTR has been managed in a poor, hit-and-miss manner for a long time.  For those of us who have PMC's that have coliving property management that works, we need to create a gold standard.  I believe my PMC has this gold standard.  We've created it, refined it, replicated it, and everyone is winning! 

This is a huge benefit to those of us who run our businessses like businesses and transfer the title into the business LLC.

 That's so cool that you are actively addressing the issue of housemate conflicts.  Relationships/households can NOT form or grow without conflict.  One this is for sure, if there's an absence of conflict there's an absence of relationships.  Conflict is a key means in how trust is grown and respect between two people moves from general respect to personal respect...  That is as long as the conflict is handled well.  We give our households (coliving houses) the tool of the "5 On 5 Process".  We adopted this from living co-ops that have perfected it over centuries of shared environments, and it is powerful in its simplicity and effectiveness.  99% of conflicts our Property Manager never hears about b/c the residents resolves their conflicts and build stronger relationships and households.  That said, we are working on how to maximize the 5 on 5 process with onboarding videos, as many are conflict avoidant.  We tell our residents to never miss the opportunity of a good conflict.  Conflict is a sign of life and caring. Most of what people want is waiting for them on the other side of a conflict.  How are you 6 month leases received compared to other lengths? 

 Please see below.  Let me know if you understand this different from me. Fannie has something similar, and I'm happy to share that if you can't find it.  What do you think? 

Freddie Mac 8406.4: Additional permitted Transfers of Ownership

8406.4:Additional permitted Transfers of Ownership:

• The transfer is to a limited liability company (LLC) or limited partnership (LP), provided that:
  • The managing member/general partner of the LLC/LP is the original Borrower. If there are multiple Borrowers, all of them must be members/partners of the LLC/LP, and at least one of them must be a managing member/general partner. If the transfer results in a permitted change of occupancy type to an investment property, such change must not violate the Security Instrument (e.g., the 12-month occupancy requirement for a Primary Residence), and
  • The Servicer notifies the original owner or natural person that the Mortgaged Premises transferred to an LLC/LP must be transferred back to the original owner or natural person prior to any subsequent refinance or modification application to meet Freddie Mac's underwriting requirements.