All Forum Posts by: Shawn Coverdell

Agreed. I went through a Mortgage Broker for first 4. Then Fannie Mae cut me off as they will only guarantee 4 loans and the majority of lenders want those nice Fannie guaranteed mortgages and will not deviate. Loans 5 and 6. Should sign in next few days, are also through a Broker (different one). SOME brokers and small banks will allow you to go up to 10 as this one I am currently using will. I expect to reach 10 by this December Thanks to Brandon's BRRRR strategy we are rolling fast.

After this it's all about a Portfolio Lender. I have a referral, but am waiting to fill my 10 conventional slots first as the rates are better. many Portfolio Lenders will only do 15 year loans or 5/30, 7/30 arms and such. That's fine, but I was advised to enjoy my 10 newbie loans while I have the opportunity. Yes. small banks are much friendlier to work with. Credit Unions are so much better than the big banks.

I have done 2 BRRR cycles. As far as I can tell, if using cash, the deals can be so incredible that you will be open to many options. I can sell now and take profit. Sell down the road 5 years. I can hold until dead (current strategy). as long as you keep the money in the game. Always getting more boxes or trading little boxes for bigger ones. This is the best game I have ever played!

offer based with an inspection contingency to get it under contract. Then mess with getting in. Let the owner figure out how you are going to get in. If he wants it sold he will get you in to inspect. Problem solved. 

I have done this. It works.

If you find investing to be as favorable as I have, you will most likely decide to do what most of us do. Just contribute enough to your 401K to get the matching funds. The rest goes into buying more boxes. Buy your first couple boxes and get them rented. See if you can pull some good numbers in your chosen area. Then decide. 

just do your best to keep it rented and up to standards. Your bank account is the best calculator. 

Nice start!

This strategy works Best for the DIY investors I have found. If you do most of your own work, you can easily get all your cash back as well as enough to pay for the work you did and still cash flow as if you had financed it to begin with. Use that to go again. Takes us 5 months total to complete the process from start to finish (mostly waiting on others, banks, getting rented etc...) so we will be doing 2 at a time. It seems to me that the terms at least in our case are about the same. 30 years, 4.24 APR etc... Yes, after 10 I will have to find one of those portfolio lenders.

I concur. Reject now before they all dig in. There maybe more family on the way as well!  It only gets worse. find a better tenant.

I agree with Graig's assessment. I would never purchase a property with those numbers, but I also agree with Paul regarding your first property. This is not the best way to leverage your funds. BUT, you will get yourself a tenant and along with that comes an education. This is huge. It also allows you to start looking at properties as a landlord would see them. Your next purchase needs to be a DEAL and now you will know just how much of a deal it must be to qualify as an good investment property. 

If you decide to keep this home as a rental, I don't think you will necessarily loose money.  You will need to consider dumping it for better investments however once you get a little experience.

Long Short, you will always be less than happy with your property management company. We use ours to shield us from all the Drama. We agreed that any and all maintenance calls are emailed directly to us. We decide if we want to do the repair of if we will have the management company to it for us. 

This has worked out well for us. 8 doors currently and the past 2 months have been so quiet that I almost welcome a repair call just for something to do!  Rents just direct deposit in one lump sum on the 7th, along with a detailed statement. The 10% fee is worth all that and more to us as we look for more deals and look to retirement soon. We want to be absolutely sure we can hit the road in for weeks at a time without having to worry about our properties being kept up.

For us this is the only way to go.