All Forum Posts by: John Karg

Hi Jack,

You would be looking for a 2-4 unit property in the case that you don't want to have roommates. You can view these properties in your area by filtering for "multifamily" properties in zillow. Starting this month, you can purchase a 2-4 unit property with only 5% down using a conventional loan, and you can use the rental income from the other units to qualify for the loan. I got my start this way with a duplex. Feel free to reach out--I'm always here and happy to help if you have any questions! 

Hi Bryce,

There are plenty of loan programs these days for a primary residence with very little or even no down payment. That said, you still need some savings for closing costs and prepaids. As others have said, do what you can to save up money and in the mean time research areas, property types and loan programs that you might want to take advantage of. I can always help with giving you an idea of what's out there as well! 

Hi Monica, depending on your relationship with the possible buyer, you could always sign an agreement that they won't go around you to purchase the property before having them put down the EMD. It's not a foolproof solution, but most investors would honor such a document, even if not legally binding.

Hi Dries, 

Are you going to be renting both homes once you're out of state? Is the 1st home cashflowing? 

If you're able to cover the monthly payment loss on the 2nd home with the cashflow of the 1st (or get close), it may be worth it to keep both. It would be a shame to sell while prices are appreciating as you said, and if interest rates come down in the future you could potentially lower your payment substantially. Just my two cents! 

 Hi Matthew,

It's great to hear Ft Myers is getting rebuilt! Must be even better to be a part of it. 

What type of deals will you be doing? Are you looking for construction loans or loans on properties that are damaged that you are looking to repair? I've got plenty of lenders that offer programs for either case, so feel free to give me a call anytime and we can go over what might be the best options. 

Hi Mateo,

I'd say to do whatever has the most earnings potential longterm (and that you enjoy) for work. Ultimately, the most important requisite to being an investor is simply having capital to invest, so saving up your money is going to be what gets you there the quickest. It's certainly a benefit to work in real estate as an investor, however it's definitely not a requirement--there are plenty of doctors, software engineers etc that employ their extra capital in real estate on the side. 

Hi Jackie,

It sounds like there are a lot of factors at play here, however the roof alone should not hold up the closing, as there are temporary (surplus lines) insurance policies that will insure the property without roof coverage until it is replaced. Feel free to call or message me and I can give you the contact of an insurance agent that I've worked with that can do this. Additionally, since there is no lender involved you could just close without insurance, and then simply get the roof replaced as soon as possible (hurricane season is essentially over, though there is always the risk of a fire etc). 

Hi Evan,

In my experience, being a residential real estate agent is more like working for yourself, and being a commercial agent is more like being an employee of a company. That's to say that becoming an agent in residential is something you can teach yourself with courses etc, but in commercial you really need to get the job first at a commercial brokerage, and then they will train you. It's not as easy to get a commercial job however, and many new hires spent a few years as an analyst first in some sort of commercial real estate firm. 

That said, there is no set path to becoming a commercial agent, but hopefully that helps shed some light on the difference! 

 Hi Jose, 

The down payment requirement for either FHA or Conventional doesn't depend on if you are a first time buyer, however, it does depend on if you are going to live in one of the units of the property (owner occupied vs investment loan). The down payment requirement also depends on if it is commercial or residential: for a 2-4 unit property the down payment can be 5% with an owner occupied conventional loan, however a commercial loan the minimum is generally at least 20%.

Feel free to let me know if you have any other questions! I'm always happy to help. 

 Probably around 5 jobs total, ranging from fixing a broken fence to painting the whole house. More serious issues of course might require reaching out to a specialist.