All Forum Posts by: John E.

As @Account Closed has shown in the link, there are some regulations in place preventing you from routinely using an FHA loan to flip properties.

It's my understanding that FHAs are for OWNER OCCUPANTS. FHAs can be used for investment purchases. 3.5% down on a quad while you are renting out 3/4 of the unit can be a sweet deal if the numbers work out right!

@Mike Sheppard A joy ride! Sweet! Hey if we stay in this business long enough and lady luck is on our side then who knows? Maybe we can actually boast the guru life!

Guru Life...

Haha! I love RK, but poking fun at him from time to time is okay to me!

@Jessica H. I suggest that you read the book How to Win Friends & Influence People by Dale Carnegie. I just finished it last week and it's done wonders for me already. I picked up some of his techniques by observing others, but I never knew there was a book filled with other ones!

Jessica~ I'm going to do you a favor and give you a free copy I have on my computer. Email me at jmeheretu AT yahoo . com if you want it. Leave your name in the subject line.

I just want you to get the preconceived notion that we're either a "people person" or not. I feel that the ability to confidently communicate with people is like sales- it's learned. We are, at least as young children, merely the sum composite of what we've picked up from those around us. That's why some kids are outgoing, friendly, and trustful and others are not so much- we pick it up. My dad always told me when I was a younger kid (still pretty young now) that I was "shy" like he was as a boy. I set out to prove him wrong and boy did I! 

Carnegie does a splendid job of explaining how to go about communicating with people confidently. It's a must read for all people that want to do great things in life. I see that you're beginning your career of doing great things in real estate, so I recommend you check this book out!

Thoughts?

~John

 That single post by @Lauren Whitney is probably one of the greatest answers I've ever heard on this site. I just copied and pasted it onto a note on my computer. Rentometer and Craigslist were on my mind, but posing as a tenant is BRILLIANT!

Do yourself a favor and follow up with what this gentlemen posted! :)

@Mike Sheppard I live in Falls Church!! We're not too far buddy, so that's really cool.

I want to chime in with a few points on DTI.

The banks don't want investors to use excessive leveraging because if they take on too much debt there is a higher chance that they will default on their payments. Keeping your DTI ratio in check is one of the most important tasks of any savvy RE investor looking to get bank financing.

DTI uses GROSS monthly income and not your net pay. Depending on your W-2 income and tax bracket that can be a big difference, so understand that.

The formula is simply...

Debt Payments/ Monthly Gross= DTI ratio

There are actually two types of DTI ratio~ front end & back end.

Front end debt covers your mortgage related debt on investment properties and your personal residence. Back end debt means ALL debts you have- car loans, student loans, credit card debt, any loans you co-signed on, etc. 

The typical "max" percentage of debt banks will tolerate is about 30% front end and 40% back end. 

I could be wrong, so feel free to correct me on anything I wrote folks!

@Shari Nord Welcome to the site. This is a great site for learning, networking, and all other things real estate. Not to mention it's free. I love this place!

Your 2 children can definitely be a source of motivation and through real estate it really is possible to create the lifestyle you desire for your family. Never give up and keep on learning!

BTW check out the podcasts and make sure to contribute! 

@Andy Robison Wouldn't it be such a same if the house just... "disappeared" some how?

Haha! 

Disclaimer: I'm just kidding and not promoting arson at all!! 

@Leon Trak I don't know if anybody is really meant to be working for corporate America.

Call it wishful thinking or whatever you want for that matter, but I truly believe that we all have abundant talents, skills, and gifts that we habitually fail to use. We've all got a knack for something great, but too many people never realize it. I'm in high school right now and I know several people that have sooo much raw potential but don't care to realize it. They sometimes don't know that they can be financially independent, run their own business, and reap the benefits of lifestyle design. There's usually some limiting belief or circumstance that they believe they can't overcome. In believing so, it's self-imposed in a sense. It's quite sad :(. 

Alas! 

It's great to see you've found the site Leon. The podcasts are sooo abundant with information. I mean the golden info in the podcasts coupled with action and some "luck" (luck is a dividend of sweat!) you can become wealthy beyond your imagination.

Stay active on the forums and I swear to you you'll never regret it!

@Benjamin Timmins I know right! That cat is suffering!

Hoarders can be monsters to their pets. We, cat owners, need to hug our cats tight tonight. LOL

@Account Closed is right on. Just get some liability insurance going. it's not two expensive. I'm  not sure, but perhaps once you start to build a rapport with your banker and possibly go into commercial real estate you'll be able to do so.

I've heard that some portfolio lenders (local lenders that don't adhere to the conventional guidelines) will allow you to do so. Podcast #6 with Arthur Garcia goes into those type of banks.

I'm no expert on REI, so make sure to check your sources @Naseera Mohamed