All Forum Posts by: Mat O'Grady

@James McGovern

Maybe one reason the banks don't want to have access is because the homes could be in disrepair to the point that the property would sell for less? 

Maybe if they let people in there and those people tell them about material defects, then the bank is knows about the defects and is liable for them?

Maybe the banks don't want to pay to have a person to get the house available for people to walk through?

Maybe the banks don't have the knowledge of the housing market?

Maybe the banks want to spend their time and money on parts of the business that make them money?

Maybe they just see the bad debt as a write off and don't really care how much the house sells for?

@James McGovern There is a website called "InverstorLift.com." It is a place where wholesalers put up deals. I have seen a few in CT.

I guess it depends on how much money you have. When you said you had some money saved up, I was thinking that meant you would have enough for a down payment on an FHA loan. I believe you should be able to get one for 3.5% down.

If I were in your situation, I would think about where I want to be living and where I want to be investing in real estate. For me, it was easy. I wanted to stay in the same county that I grew up in. I knew the good and not so good areas. I found an area I felt comfortable living in and I bought a house with an FHA loan. I put 3.5% down. I was living with my wife and she didn't want to house hack, but that is a great way to get started.

Find an area you want to live in. Buy a multi-family with 3.5% down. Live in it and rent out the other units. 

If you don't have enough money for 3.5% down, find a cheaper place to live and work hard to save up money. While doing that, you should research places that are good for investing. Make sure you learn the markets. Then when you have enough money for the 3.5% down, buy a place that you can live in and rent out spaces to other people. 

@Austin Brummett

Congrats on graduating from college soon. Just given the information that you provided, I would say buying a house where you can rent out rooms or a separate apartment is a great way to start.

I believe @Gowtham Yenduri graduated from UConn and he is investing in real estate. Not sure how active he is on BP, but you might be able to get some insight from someone who was in a similar position. 

@Alanna Inoa 

What part of CT are you in? There is a pretty big real estate investors group in the Hartford area. They have meetups. https://www.ctreia.com/

@Matthew McCarty At the beginning of my investing career, I was constantly looking at websites like Zillow and Redfin to see what houses are selling for so that I have a good feeling on the market I picked. I have been able to buy houses of the MLS because their list price was good and I offered cash without contingencies. I also contact the listing agent for the showing and to put in the offer. They are more motivated to get the seller to sign with someone without an agent because they get more commission. You can also look at sites like auction.com, homepath.com and homesteps.com. There are also deals that can be find on jud.ct.gov for foreclosure auctions but those rarely work out because the people usually owe more than the property is worth or they get cancelled and postponed frequently.

@Matthew McCarty and @Aileen Ouyang

Investing in anything is specific to each individual's goals. How fast do you want to scale? Are you OK with getting wealthy slowly or are you trying to do it as quick as possible?

If I were in your position, I would look for a bank or credit union that will give you a line of credit against the rental property. They are hard to find, but they do exist. The line of credit will give you the access to the equity in the property without having to pay interest on it. You pay to open it up, but you won't pay monthly unless you take money out. You will only pay interest on the amount of money you use. This gives you the flexibility to find a deal on your own timeline and to act quickly when a deal does come up because you won't need to get bank approval to use the line of credit. 

Congrats! I am glad that I am not the only one who takes twice as long and spends twice as much, haha. In the end it will all work out.

@James McGovern

I am curious what a land bank is and how it is used....

@Michael Nelson What part of the state do you invest in? That might be helpful for people to know. Also, if you provide numbers on your past deals such as purchase price, rehab cost, rents, etc.