All Forum Posts by: Julien Jeannot

I'm a big fan of the 2-4 unit owner occupied to start with. Start chatting with a lender to figure out your options and how to prep.

Another route is the owner finance, but much harder come across. If you have the time, chat with an agent or title company rep, get a list of all the local multi families and reach out.

I've seen a lot of investors who are not able to qualify for a traditional loan buy with hard money (private loans), then refinance into a traditional loan.

Another option to explore is cross collaterize to leverage the equity in your existing assets. Ask lenders if they offer that option.

A HELOC can also be hand to extract the equity out of the existing properties for a down payment.

Welcome!

I've found the local networking groups is another great place to meet active investors. Either informal or the REIAs.

Best of luck in your journey.

I'd echo the chat with the new occupants, qualify and get a lease.

Aside from that, I would contact an attorney asap. 1) to educate yourself on local laws and 2) to get the ball rolling as early as possible if things goes the wrong way.

As a point of reference, my state is tenant friendly and if landlords don't follow procedures to a T, the eviction can be delayed and quite costly.

Couple other ideas aside from grabbing the phone book and calling around:

- Cross collateralize if you have other assets

- Syndicate

I'm a CPA, but not that kind of CPA and I always consult my own CPA and 1031 coordinator for these type of questions. 

I'd recommend you do the same as everyone's situation is different. Sounds like an attorney might also be in the mix with the partnership angle.

The other benefit of enlisting the license professional early is you get a since on how fast things can move and what other options can service your goals.

I'm a fan of setting up HELOCs as they are a versatile tool to access cash quick. Doo keep in mind the risks associated with them though and plan accordingly.

I've used and seen the following work well:

- Rehab

- Downpayment

- Other investments

- Privately lent out to arbitrage interest rates. A lot less attractive there days...

Mike,

That really depends on the type and amount of work needed to be done.

I'd recommend walk through of the property as soon as possible if you have not done your bi-yearly yet and assess what needs to be done. With that list in mind, start lining up contractors and materials to start as soon as vacant. Once the work is done a deep clean should take no more than a couple of days including professional carpet cleaning.

I would also recommend, once the unit is looking its best, to take professional pictures for future listing.

Another trick is to start marketing the property a month or two out.

I agree, start interviewing agents.

Starting early will help you get ahead of the game when you are ready to buy.

A great agent will not only have an understanding of your strategy, but also a network of professionals to recommend. Loan brokers, contractors, attorneys, ect.

There are likely steps you need to take now to better position you for success. Could be right sizing your credit score, debt, reserves or knowledge of how much things cost to rehab as well as local rent rates.

Several options I've used and seen work well:

- Rehab loans, programs differ so call around all the lenders.

- Private lenders. Higher rates and can offer a lot of flexibility. Either through boutique firms or friends and family.

- HELOCs

- Credit cards. Not my favorite, but at the end of the day, it's all about the numbers and your strategy to pay back.