All Forum Posts by: Greg Downey

@Chingju Hu, the reason investors like putting as little money down as possible is so that they can keep as much money in hand for the next deal.  25% down definitely helps the bank take less risk and keeps you out of the next deal longer.  Also it decreases (albeit only slightly) the magnification of the power of leverage.  

Also, what is $4500/$27/month? 167months (14 years) to break even on the $27 gain in cashflow based on what it will cost you to attain that extra $27/month.  Seems like a steep opportunity cost to me.

@Matthew Barnauskas, is there a reason that you are looking to do these as a portfolio type of loan?  One rule of thumb that I have learned from hanging around a very experienced lender is that portfolio loans are typically not the right product unless you are getting more than 10 properties.  Otherwise it is almost always more beneficial to get financing for each house individually due to better/cheaper terms.  

@Duane Gunkler, you are right, that is tough. Thoughts...

Step 1: If there is seller financing available, done deal, take it, mission accomplished! If not, then move to step 2.

Step 2: You are in all certainty going to need a partner as you are going to need at least 25% down for a small multi.  

Step 3: Continue with partnership because you are cashflowing.  If not, then move to step 4.

Step 4: After stabilizing the cashflow/property, prepare your personal financial position to allow for you to buy out your partner and continue on your own moving forward.

Step 5: Find a bunch more deals and rock it!

Happy investing

BP crew,

I plan on transitioning my personal residence SFH (3/2) into a rental within the next 6 months. Having lived in the house for a very short time, I have gotten to know the property and what it needs done as far as preventative maintenance (luckily not much at all).

Where I am stumped is my gutters. We have 3 soft maples in the back yard that shed exactly 45 billion-trillion leaves in the early fall through mid spring. This causes the gutters to clog literally daily. I have resolved that some sort of gutter-clog prevention product is the only option to prevent myself from having to get on the roof every day for 4 months.

Do y'all have any recommendations for the best gutter product to solve the problem?

P.S. - No, tree removal is not a solution as the neighbor has about 10 soft maples that shed just as much into our yard/gutters.

@Manolo D., shoot, thanks for pointing that out.  This is totally in the wrong forum.  I was about to ask what the heck a diary was lol

@Scott Graham, both of the fellas @Upen Patel and @Chris Mason are correct in regards to Fannie/Freddie. Are you considering "conventional" to be Fannie/Freddie or are you considering "conventional" to be long term fixed from a banking institution but not Fannie/Freddie? That would give you different expectations. 90% LTV would be asking a lot from a lender on a non-owner occupied. I wouldn't expect any more than 75% LTV.

BP crew,

I plan on transitioning my personal residence SFH (3/2) into a rental within the next 6 months. Having lived in the house for a very short time, I have gotten to know the property and what it needs done as far as preventative maintenance (luckily not much at all).

Where I am stumped is my gutters.  We have 3 soft maples in the back yard that shed exactly 45 billion-trillion leaves in the early fall through mid spring.  This causes the gutters to clog literally daily. I have resolved that some sort of gutter-clog prevention product is the only option to prevent myself from having to get on the roof every day for 4 months.

Do y'all have any recommendations for the best gutter product to solve the problem?

P.S. - No, tree removal is not a solution as the neighbor has about 10 soft maples that shed just as much into our yard/gutters.

@Stephanie P., You didn't miss anything.  I was unnecessarily and not very clearly drawing a distinction between 1-4 unit Single Family Dwelling vs. 5+unit "multi-family" financing.  Like I said, unnecessary and not clear, my apologies.  

Rod Khleif Put out a 200pg textbook that is pretty darn good.  https://rodkhleif.com/books/

It is still free for now and is at least worth putting in your "pocket" as a reference.

If you are really getting excited (and have a couple of extra bucks to spear), I have heard really great things about the "Secrets of Successful Syndication" event that the Real Estate Guys put on twice a year.

Anyone else tried either of those two products?

P.S. https://www.biggerpockets.com/renewsblog/2013/10/1...    

That is a summary of all of the heavy hitters that EVERYONE on the podcast recommends over and over

@Arthur Nunez unfortunately that is one state that our crew doesn't play in yet. @Kevin Romines is right about less than 10 properties. Those have pretty simple financing and are easily found. You might try @Chris Mason for CA lending.