All Forum Posts by: Khalil Favard

I'm considering purchasing a home (50k max) that requires some work, I planned on financing the work using a home equity line of credit. 

My major concern is will a bank be willing to finance a property that require 20-30k in renovations?

@matt_mckay 

Hey thanks for reply to my post. Can you give me a bit more information on co marketing or point me in the right direction where I can find more info?

Thanks! 

As a real estate agent is there a referral fee I could get from referring a client who closes on a mortgage?

Morning, to anyone licensed in NY, what's the best way you recommend going about getting licensed? 

I see so many different places online.. 

I've been in the retail banking industry for a couple years as a Branch manager and meet alot of people day to day who need help with mortgages, refi, home equity. I've made alot of connections and I've meet alot of people who deal with real estate and if I can't assist a customer at my bank, I always have someone who I can refer them to.

I've been thinking I can create a business out of this and have began reading up what maybe required. From what I've researched, I know I'd need a real estate license in order to get paid from real estate transactions but I was wondering would it be a conflict of interest since I work for a bank and I also have an NMLS number?

Also if anyone is familiar with this type of business, if they could share some advice or things I can read up on I'd really appreciate it! 

That would be great @stevewilcox thanks! 

Hello all, my name is Khalil from Brooklyn NY. 

I'm a branch manager for a major bank, and have been in retail banking business for about 7 years. 

Getting into real estate was something I always was interested in, but due to debt was never something I could begin. Finally I'm close to be debt free and hope to begin my journey mid to end of this year. 

My plan, high level of course is to purchase a 2 family home and rent it out. I plan to go into this with my mother, it's something she's always wanted to do as well. She brought her home (where we live now) in '99. 2 family and basement for about 200k I believe. She worked hard and invested alot into the house. At the moment it's worth about 600k,and pays for itself between what I pay her for the basement and the tenant upstairs. 

We plan to use the equity in the home to down-payment the property and hold us down while we get things together. 

What at I'd like to gain from biggerpockets is guidance and advice around the actual process of finding a good investment property at right price, requiring minimal renovating and repair. 

I was considering Newark NJ and renting out to section 8 for security of making sure I get paid,but once again this is all high level. Here are some basic #s:

Out HELOC for 100k

Property for 250k

Down payment 5% or 12.5k

Closing costs ~12k

Monthly total mortgage (est @ 4.5% and mtg ins. ) ~$1650.00

Rental income from both units from what I've seen online: ~ $2400

Leaving ~ $750

Setting aside 30% into emergency maintenance account : $225/month 

Profit: ~$525/month 

As for the HELOC, I plan to take advantage of interest only payments @ about 4%. It will be paying for the following :

12.5k down payment 

12k closing cost

Mortgage payment while finding tenant, thinking worst case 3 months

5k

Other expenses (things I may not be factoring) 

5k

Total:

~35k

So my monthly payment interest only being about 

$120/month. 

Once everything is up and running I'd lock that portion and pay it down as quickly as possible. 

This is all hypothetical numbers, they could be more or less, but I tried to over estimate expenses. In my line of work I've dealt with many loan officers and feel with my credit score and DTI I should be able to get great rates.

I'd appreciate any criticism or suggestions as I'm very new to this, take it easy on me though... Lol