All Forum Posts by: Heath Shepard

@Ryan Kephart yes sir 5% is for an FHA and it has to be owner occupied and it also has to be in good condition. In many cases they will even require dry and flaking paint to be repaired prior to closing as well as rotten wood. I'm dealing with that as we speak on a house for a client who will be occupying the property. One house a yeah on an FHA and it probably won't be a very good BRRRR but that's really all your going to be able to do. Another option is to I look at hard money lenders to lend you the remaing 15%DP on a conventional loan and then pay them back at the refi. And yes as mentioned above, owner financing.

There are a couple things.  The agent wasn't all wrong but there is much more to the picture.  The agent was clearly not an investor agent.  Right now interest rates are super low so I have clients buying now even though it is a little short on positive cash flow but knowing that they will raise rents in the next year, reduce expenses and in the long run they will be just fine.  Another thing to keep in mind is that if you are financing the property and the income covers operating expenses and the interest on the loan you are breaking even.  If you have to contribute to the principle of the loan then you are just moving money from one account to the other.  If you are negative on cash flow by ~$100 and the property is financed then chances are your just contributing money towards the equity of your property.  This isn't a bad thing and after you reduce expenses and raise rents you still have that cheap 30 year money.  

Cheers,

@Alex Loera you can absolutely!

@Kenneth McKeown amen!!! Thank you for your story. I love it.

@Sandy Morales I have a great roofer Rafael Rosales. I just sent you his information. He is replacing the my primary residence roof currently.

So this has been a big issue for me. When I bought my duplex I bought it in an LLC and got a portfolio loan with terms that were not great. 4.5%, 5 year ARM with a 20 year amortization. I was able to find a lender that would give me, Heath Shepard, a 3.25% 30 year fixed note so I tried to refi my duplex but because its in an LLC I can't. What I have to do is do a quitclaim deed and put the property into my name, get a loan in my name, then I can quitclaim the property back into the LLC. The lender is fine with this. So going forward I will buy properties in my name to get a good 30 year loan, then do a quitclaim deed and put the property into an LLC. Hope this helps.

Hi there @Amon Neequaye,

All are good choices. It just gets down to the terms of the loan. I'll go with the best loan I can get no matter who it's with. I'm currently refinancing my duplex loan that I received back in February because I was able to get a better loan with another bank that really wants my business. My duplex is in SA and I am really impressed with this current lender if you would like a reference just DM me. I have many loans with different banks. One day I would like to consolidate everything but as of right now I am in the best position I can be.

Best of luck,

@Yashar Fred I would love to assist you in finding the property you're looking for. PM me so I can get a better idea of what you're looking for.

Talk to you soon,

Kris Hochart with Red Wagon Properties is the best you will find.  I have tried using Rentwerx and they were ridiculously expensive.  PM me and I will give you contact info.

Best of luck,

Wonderful! That sounds great.  I'll see you there!

Thanks for the invite!