All Forum Posts by: Jeffrey Holst

Welcome

Ill be there but will be about 530.  See yall soon

@Jeremy Pastore  I think that it might be hard to buy in Brooklyn but you might be able to buy something elsewhere.  Ultimately it comes down to what you are going to do with the money.  If you have a place to put it that generates a return greater than the cost of the money then it makes sense to pull out some equity however you do need to account for risk.  And there is something to be said about a low leverage portfolio.  

Another option might be to sell the property and 1031 into something bigger that gets a better overall return.  However before you do anything you should determine what type of property you want to buy and how likely finding that property is.  

Good luck

Two things.  One tone is important but two realism is important also.  Bad credit needs to be resolved.  Sometimes that is hard but you need to focus on improving that.  If you happen to find a great deal before you fix the bad credit issue then you should consider wholesaling it or a partnership since you really arent likely to get a loan with bad credit and unverifiable income.  Neither of these issues though are deal breakers you can fix your credit and explain and or increase your income.

Ill try to make it

If you truly believe you are ready then start with something small and see how it goes. don't risk a large amount of her money. I'm very skeptical that you or her would be able to take down an apartment building with little to no experience. I'd look to buy something for cash in the 50k range and maybe sign an interest only note to your mom promising her 6-8% on her money. then you have a low payment you are taking the risk and if it goes bad you can hopefully still afford to continue paying the interest to her from your other income.

The advice of building credit by getting a credit card would work over a year to 18 months the question is though if she can actually afford a mortgage payment? if so why doesn't she just start paying one for next 18 months in the form of saving it up and use that cash for the repairs?

You could also lose what you borrow and if you get into a lawsuit potentially more than the total cost of the purchase. Which could lead you to bankruptcy however none if that is likely if you take your time and learn the market before buying, make sure you have a reasonable asset protection plan in place, and you make your risk effectively. All of this can be done but it takes time to learn this info. fortunately BiggerPockets is a great place to learn so keep reading and studying.

@Brian Levredge is correct and I defer to his wisdom. 

Buy two rent three units and you can live for free in the third. if that's not possible be ok with living a little cheaper while paying down the loan on your nicely located duplex.