All Forum Posts by: Landon Bleau

At a quick look, you'll be getting 0.8%, which seems a bit low to me.  Tough to tell without knowing taxes and general condition of the property, as well as if the rents could be raised or if they're topped out for the area.  I would keep looking and analyzing every property that comes on the market to compare and see which are the best as this one at the surface looks like it might be a bit low on cashflow, if any.  

Congrats on finding this person!  I'm curious what others would suggest the best way to structure the agreement as well - just curious, how were you able to find this person and convince them to invest with you?  

Yes, you will have to make up the difference if it doesn't appraise, unless you're able to find a bank that will refinance at a higher LTV (90%) which might be extremely difficult to find. If you can't cover the difference in order to refi, you can always sell the property, odds are the way the market is, you'll get some great offers for it!

It could be a little difficult to do it on your own with $10k.  Personally, I would look to partner with someone else.  If you're set on doing it alone, I'd try to find a seller that would be willing to seller finance for a year with a home that needs just cosmetic updates so you're not doing anything too expensive, and can do a lot of the work yourself.  

Kyle, I'm a recent graduate and started investing a few months after I graduated, I would definitely recommend house hacking and renting out the rooms to friends.  As for lending, it will be more difficult to get conventional financing if you don't have a job, but that just means you have to get creative.  Start door knocking and see if someone will seller finance their house, or asking your parents if they'll cosign a loan.  As for your current lease, don't let that hold you back from getting started, ask your friends if they'll sublease from you so you can get out of the lease.  

Desmond, a few people I know purchase at the auction using hard money.  You typically have to have the money lined up before you bid on the property.  Most auctions in our area require 10% down (nonrefundable) the day of the auction, then you have 20-30 days to pay the rest.  I would look into hard money lenders, just make sure you have an exit strategy as their interest rates are very high and typically only lend for a year or two.  

Kyle, since you've lived in it for 4 years you can sell it tax free since it's under $250k gain. Unless this property would make a great rental, I personally would sell the house, take $40k profit and purchase the 4 unit.  Depending on the purchase price and what all needs done on the property, if you do 3.5% down, you could end up having enough money to then make another purchase by the end of the year, doubling your goal and buying 2 more!

Matthew, I would reach out to a FHA lender in your area and ask if they would be able to approve you. I was able to qualify for a 5% down $250k conventional loan with 4-5 months of work experience, so if you can't get approved for FHA, check to see if you can qualify for conventional.

Lawrence, how long have you been cold calling?  It could just be because you haven't been doing it long yet.  Cold calling takes a large numbers of calls in order to find someone who is willing to sell to you.  As often mentioned in many podcasts, it make take 100 phone calls to find 1 person who is willing to sell, and 1 of every 10 people who wants to sell would consider selling at your price, therefore, you need to make 1,000 phone calls in order to get a deal. 

I attended this for the first time a couple weeks ago and it is a fantastic way to connect to others getting started in real estate and with those who already have the first few deals done.  We were all able to brainstorm through some difference challenges we faced and get different perspectives from others in the group.  The best part of these in my mind is the action steps that you're able to take away and the accountability that the group has for each other's goals. Highly recommend to anyone looking to surround themselves with like minded people!