All Forum Posts by: Heath Thomas Jr
Heath Thomas Jr has started 39 posts and replied 184 times.
Post: Was offered 110k up to 150k to property manage at 21 years old
- Lender
- Baltimore MD
- Posts 198
- Votes 65
Quote from @Schneur Sanowicz:
Quote from @Nathan Gesner:
Only a fool would offer that kind of money to an inexperienced 21-year-old. If it's legit, take it! Just be careful that you're being hired by a fool and the job won't last.
The reason why he is giving me the job is because he knows me and trusts me. He had guys that worked for him before that weren't trustworthy. He just wants someone reliable.
Then take it! If you already know him, he should be very open to answering any question you might have. Since it sounds like he is the owner, he should be able to show you how he goes about finding properties and getting people to invest. Worst case you set yourself back a year from going all in on educating yourself and building your empire but now you have some cash in the bank to get that ball rolling.
Post: Real Estate Investing for Personal Wealth AND Housing Equity
- Lender
- Baltimore MD
- Posts 198
- Votes 65
Hey @Maya Grevatt our Baltimore branch of Hometown Lenders is really focused on that exact issue. Our motto is "Building Generational Wealth" and we work with a lot of minorities in the area to not only be the first in their family to own a home, but also to think about the next steps financially to help themselves and their children be better off.
We are trying to do this by putting out a lot of education to help people better understand real estate and finances in general. We are putting on a basketball camp in July that will tie in playing basketball with all the different career paths related to the game, not just being an NBA player.
Post: HELP! Need direction on which property to refi for next BRRRR
- Lender
- Baltimore MD
- Posts 198
- Votes 65
Quote from @Sheena Schleicher:
Quote from @Sebby Gabre Madhin:
I would talk to the seller and see if she is open to seller financing. If yes, and you can generate enough funds to come up with the down payment (if any) this would be great.
if seller financing isn’t an option then I would probable pull the cash out of the condo. I don’t think that you could pull enough out to buy outright but maybe enough to serve as down payment if you get a bank loan on the 3 acre (commercial loan, I guess). If you or the property don’t qualify for a loan ( or your husband stays from on not wanting more debt—I very much would disagree with him—), I would sell the condo, you’ll be on the hook for capital gains tax unless you find some way to 1031 exchange ( may need to add another purchase?.)
This makes sense. The seller is visiting us in a few weeks (in from TX for a family event, so we invited her over for a BBQ). She's already thrilled to see a young family growing up in her childhood home, so we're hoping the visit will allow us to share our vision for continuing the legacy of her parents. As you can see, this is not strictly about money. She is becoming a friend, with us sharing old photos of her and her children on the ranch & now new photos of our little kids here. This is a generational property that, whether we just have our 2 acres or if we the 3 to make 5 acres, we expect this ranch to stay in our family.
Do you have any suggestions for bringing up/asking about/proposing seller financing? I know that she is the trustee of the estate shared with two other siblings (her parents passed over the last few years). She's the executor but I suspect any decisions will include the 3 beneficiaries.
If we pull money out of the condo, do we take the max amount out? Our loan guy seemed to discourage pulling from the condo b/c we're just hitting the phase of amortization where we're making big progress on principal, but of course he's not investor/BRRRR-minded. Thank you!!
You could also consider a HELOC or HELOAN on the condo to keep the low rate on the first mortgage.
Post: Feeling Kind of Stuck
- Lender
- Baltimore MD
- Posts 198
- Votes 65
Spend a couple hours once a month goal setting or tracking your progress, but the majority of the time should be spent looking for new deals.
I found that I could spend a never ending amount of time making the optimal goals or process, but until I put the focus on getting that first deal or the next one that any progress was actually made. You can always optimize as you go or reflect on it after the fact, but getting results in the first place should be the priority.
Post: Co borrower for fha
- Lender
- Baltimore MD
- Posts 198
- Votes 65
@Cheryl R white yes you can purchase FHA as a self-employed borrower with 3.5% down. Do you have two years of work history as self-employed?
Post: [Calc Review] Help me analyze this deal - Sect 8 Condo
- Lender
- Baltimore MD
- Posts 198
- Votes 65
Hey Scott,
It's been a while! I also agree it looks like a good deal if you have a tenant lined up. I like the idea of going to your property manager for investing as there could be multiple ways of structuring that partnership, just make sure it doesn't come back to bite you.
Post: Cash out refi with high interest rates
- Lender
- Baltimore MD
- Posts 198
- Votes 65
Quote from @Jack Seiden:
Quote from @Dana Powell:
Quote from @Jack Seiden:
Quote from @Dana Powell:
I cashed out a refi at 4%; should I use those funds to purchase an investment property at 6.75% interest with a $8000/yr cash flow? My COC would be 6.7%. And I'm purchasing market price on a DSCR loan and am not expecting property to appreciate (it's a condo). Even if rates fall years from now, I'd unlikely be able to refinance because the "market" rent (which is much lower than my actual, section 8 rent) wouldn't cover the debt service. What to do? I have a great tenant ready to go; guaranteed section 8 rent to cover the debt service and a seller offering a 2% credit--I might be able to get 3% which would cover almost all of my closing costs. Right now money is sitting in my bank account, losing value. But maybe I should be patient and wait for housing prices to come down? Any advice would be much appreciated! FYI: property has been on market 18 days and I'm in DC where appropriately-priced properties are sold within 2 weeks.
@Jack Seiden thanks for the reply! I have a high DTI so I can only get loans based on the asset covering the debt and not my income. I'll call some local banks tomorrow. I heard Eagle Bank is investor-friendly, but again my DTI....
Yeah the dti is tough, however you can count I think it’s 75% of rents or so towards income if you have landlord experience. Credit score plays a huge role too. Best of luck!
Yep, 75% of the rent can be used as rental income.
Post: Refinance Personal Home for First Rental property
- Lender
- Baltimore MD
- Posts 198
- Votes 65
I definitely echo what @Andrew Postell said.
The difference in product comes down to your risk tolerance. If you are going to fret daily about the rate, just lock it in for 30 years. If you are ok with the fluctuation, a HELOC will probably be easier, and as @Ruth Lyons mentioned, you can use it multiple times which would save on closing costs versus refinancing multiple times.
The Fed is currently expected to hike rates about 5 times this year so that could certainly make the 30 year look better. With that said, I doubt they will get there as we are shaping up for a recession over the coming quarters.
Post: Analyzing rent strategies
- Lender
- Baltimore MD
- Posts 198
- Votes 65
Other ways to research rents are to look on apartments.com or any other rental site and search based on the layout of the duplex, i.e. 2 bed/1 bath. What you can rent for may not be entirely comparable to a 2/1 in a large apartment complex but if you can get an idea of the finishes, etc. it could be a good starting point.
If you are already working with a realtor, see if they have access to rental info as well.
Post: Looking to purchase a rowhome/owner occupied rental in Baltimore
- Lender
- Baltimore MD
- Posts 198
- Votes 65
@Joe Norman is a good agent/investor in Baltimore that should be able to give some guidance