All Forum Posts by: JooYung Choi

Sounds like you need a hard money lender or a private money lender for your specific situation.

Seller's financing is the best way to go if yall can come to terms. In your scenario, maybe you could offer more money if they agree to your terms.

If you were satisfied with your previous lender's services and the difference in rates / points is negligible then I would say use him again. Since you are an investor, it is important to build relationships with lenders who know what they're doing. 

However, If you end up not choosing him as your lender, just know that you are not the one burning the relationship. This isn't the last home you will be buying in your lifetime.

He should not get upset that you are doing your due diligence. You need to know if you are getting a good deal or not! Personally, he would lose my business if he disapproved of me shopping around.

BP is definitely a good place to start when building your boots on the ground team. I would suggest finding realtors who also invest so they have an idea of what you are trying to accomplish. Bonus points if they can refer you to reputable contractors in the area. Finding a deal worth pursuing is one thing but managing a renovation out of state is a different ball game.

Do you have renovation funds to use outside of your down payment + closing costs? If not, you will have to utilize hard money which will drastically increase holding costs. How big of a renovation were you looking to tackle? The bigger the renovation, the more equity you will force but also comes with more risk. You also have to be wary about the end game when you are looking to refinance and pull money back out. Rents in the area need to be strong or a lender won't even approve you! (look up DSCR loans)

This is only the tip of the iceberg! 

If you ask me, I would much rather prefer investing in my local markets or at least somewhere I can drive to. I would only out of state invest if my boots on the ground guy is someone I can truly trust. 

Hey Kevin,

As a homebuyer, it is in your absolute best interest to shop around lenders for the best rates and terms. Is your previous lender a family member or a close friend? I find it weird that your previous lender gave you trouble. Business is business! 

Hey Andre,

If you are up for it, I would highly recommend buying a home that you can do renovations on to force equity! Buying that ugly house on a nice block will pay you handsomely in the future. And as you already know, buying the home as your primary residence will help you take advantage of the best loan product there is. Take the year to do powerful renovations like the kitchen, adding bedrooms and bathrooms and updating what needs updating (up to the standards of the other renovated homes in the area). Give yourself a maximum 1 year time line and move again! Now your fully renovated home is getting top dollar rents, you could probably refinance too since rates are poised to go lower (lowering your monthly obligation), you could open a HELOC before you move with the extra equity and use that to fund your next deal and now you have 2 homes! Point is, if you have equity, you have options!

Hi Tiffani, welcome to BP.

Great place to learn everything real estate. Any questions, ask away! 

I don't think you need to purchase software to get that info. ChatGpt and Google is your best friend and use credible sources. Just zone in on a neighborhood you like and learn everything about it. Your local market is a good start!

You should look into Innago! It's a great property management platform and it's FREE!

Lots of good info on here already! 

I would recommend starting by just working up deals. Do the maths. Know your local market inside out. See what $ homes are selling for and in what area, condition, style etc. Eventually, you'll stumble upon a home that could use some work, but in the right neighborhood. You'll know this because you've been studying the market. Take action and purchase! Do the right renovations for instant sweat equity. Enjoy the renovated home for 2 years and sell it for tax free gains. Or keep it as a rental and hold for that sweet ever growing appreciation. 

Study the game and you'll be a pro at it in no time. Good luck!

Be conservative in your numbers and always account for a contingency. Really know your area and the ARVs. Get multiple quotes and don't go with the cheapest guy. Have multiple exit strategies. Limit your holding costs. 

The more you know and plan for, the less risky an investment becomes!