All Forum Posts by: Lyndsay Zwirlein

My brother in law is trying to find a way into his first home that he wants to live in and cash flow. However his situation is a tad un-ortodox.

Positives:

• Has 83k saved
• This will be his first home
• Makes around 110k per year pre- “business related deductions”
• Has worked with the same company for the last five years
• Knows he wants to invest in Taylor, Texas (76574)
• Is ready to get into a house as soon as possible

Negatives:

• He is a 1099 employee
• His tax situation has his income reported as 40k~
• Knows little or nothing on how to secure finances
• Does Not have great knowledge about the area

Has anyone been able to figure out the best way to secure finances as a 1099?

Can I use future rental income on an investment property to qualify for a mortgage? I will not be living in the property. It will be completely rented out. I have 70% down payment.

BP, 

I'm partnering w/ two individuals to acquire our first 4-unit property in Northeast NJ. We've been discussing financing options, specifically looking at FHA (less equity but 1-year owner occupancy requirement) and conventional financing.

Is it best practice to set up an LLC if investing as a group? What types of financings have other groups leveraged in NJ? Are there less financing options for LLCs?

Title says it all, looking to work with portfolio lenders who lend in Cali, Texas, Florida, Tennessee and can lend to out of state investors.

Interested in both hard money/private equity loans, refi, conventional and other 30y products.

Thanks!

Hello,

I currently own a home that I live in and is my primary residence. I have found a (rental) property that I plan to buy in another city.

My question is can I get mortgage on that property as my primary residence (let’s say I am able to convince bank). Also, do I need to worry about any implications with IRS? I will show the new property as rental itself. 

The benefit I see of this approach is that I will be able to secure mortgage cheaper as primary home. 

Thanks for helping me on it. 

Apparently this is a new podcast title, and I don't think it's a good one. BP needs to stop setting unrealistic expectations. I get the fact that it is great click bait, everyone wants to dream, just a few years of "being an investor" and you never have to work again, travel the world. "From homeless to 200 units" and other inspirational stories. - Literally "GET RICH QUICK"!

I have seen portfolios of celebrated over-night-success investors and when you look under the hood it's not pretty. On paper they look very leveraged, but in reality it is worse: they carry a huge liability of deferred capex that is somehow being ignored, even by the lenders. If you have 200 doors and each one needs about $20,000 worth of roof/basement-repairs/kitchen/bathrooms/plumbing/driveway, I don't understand how you travel the world on 40k of cash flow with a $4 million dollar liability looming! What's the plan to recover?

I sincerely hope it works out for those investors, but I have two concerns.

If you have followed the topic over the last 10 years you have noticed that we are facing an increasing anti-landlord sentiment calling for more legislation. And when  you look what is behind the outrage, it's usually properties in dilapidated conditions and a completely overwhelmed PM, leading to city code violations, tenant complaints and local evening news. The term slum lord comes to mind.

The second concern is that we are raising totally unrealistic expectations with young investors. It has gotten tough in this market to pick up deals, let alone equity. IMO a responsible investor needs to aim to get leverage below 75% as quickly as possible, while getting property condition to a point where you would not have a home inspector ring the alarm bell over stuff failing left and right and major components being past their normal life expectation. 

And then finally the portfolio stress test: Can you sustain 30% vacancy, maybe combined with some move in incentives and still be able to replace a furnace when you have to?

I spend a lot of time helping new investors and one of the first things I try to instill in them is to think in decades, not months. When you buy a deal, think about owing it for at least 10 years, if not 30. Evaluate it from that perspective. REI is not a get rich quick thing!!

Hi! I am looking to do a 1031 exchange and trying to find a lender that will do a purchase loan at 80% LTV and also use the actual or projected STR income for the DSCR. Any lenders out there that can do this in Georgia and/or North Carolina? Thanks!