All Forum Posts by: Ko Kashiwagi

Hi Kasey,

If you plan to scale a portfolio, over the long run it would make sense to put them under the LLC. That said, you can change it later on so you could keep in your personal name if you are okay with the possibility of having to change it later on.

Hi Jose,

Have you looked into non-QM programs or commercial loans like DSCR financing? Typically investors use alternative financing to get around thee DTI requirements.

Hi Taylor,

The 1% rule is supposed to be a measure of rent, not the PITI. A 1% rule just means the property rents out for 1% of the value, so 2,2500/month in this case.

Hi Gene,

What is the purpose of the investment - rental or primary residence? You could do a lot with 500k if you use financing, so usually this wouldn't be the fastest way to scale. You can also always put more down to cover risks and refinance into lower rates.

Hi Mark,

What is your plan for the second property? To house-hack again, flip, rental, ...?

It seems like you'd have enough cash and equity to move on to your next property, so I don't think it would hurt you to start searching for the next one. I assume splitting the electrical wouldn't take more than a month, so you'd have it figured out by closing of the next one.

Hi Bianca,

Getting a construction loan is pretty difficult without experience or assets to collateralize. If you are borrowing money, the lender would usually create a property mortgage document and record a lien on your property/land.

Hi Mike,

For comparable rents, you can look at what properties are rented for through websites like BP rent estimator, rentometer, Zillow, rent cafe and apartments.com.

For general data, websites like the FRED and Rocket Homes will provide insights. Co-Star is expensive, but it has incredible data.

Hi Henry,

One key note is to record a lien on the property with the loan, so that the lender (your friend) has a secured loan.

Hi Lucas,

Have you looked into house-hacking? This probably has the lowest barrier to entry given your good income and savings.

Hi Jason,

9.5% interest is definitely on the higher end, but as @John Otradovec stated, it's up to you what you charge and who you are selling it to. The highest interest rate I've seen the past month on seller financing is 9% and I've seen as low as 5.5%. Usually down payments range from 0-30% down when targeting investor buyers.

At the end of the day, the point of seller financing is that sellers and buyers are able to form agreements that are generally not possible with traditional financing, so there's a lot of wiggle room to customize.