All Forum Posts by: Matt Shields

 Check your state laws, some states limit the dollar amount that an unlicensed handyman can charge for labor and materials. A couple of other things to consider. Unlicensed licensed contractors are usually uninsured, so if he or one of his workers get injured at your home you will probably be sued. Also, what if an unlicensed contractor screws up the job and/or disappears with your money? Even if you find him he may go bankrupt on you. Many state licenses require contractors to provide insurance and a bond that a harmed customer can at least recover.  As always, anything I say may be wrong or just complete a lie, seek professional advice.

Start hanging out where the investors are. Local REIA, multifamily, and BP meetings are a good start for referrals but be cautious of nefarious gurus. (Stand up and yell to your neighbor "I can do it!" now get out your credit card for my boot camp.) You will soon learn what this means. Call agents who have income property listed even if it's not really what you are looking for because they may know of other off-market deals. Ask them to put you on their e-mailing lists. If agents don't return your calls promptly and are difficult to get ahold of, scratch them off the list, you just avoided a bad agent. If you find a helpful and knowledgeable agent that you are comfortable with you may want to hire them as a buyers agent.

You also need to find a lender and get pre-qualified. This will bring you credibility when working with sellers and real estate professionals. Good luck!

We are talking about a "real estate" broker and not a "mortgage" broker? Although, you need both. If you are just starting out, a broker/agent should be part of your team. They not only can assist you with sources for lending but also every aspect of acquisition and disposition of property. While legally they may be able to represent you, not all agents are qualified for income property. It is important to find an agent with rental experience, and preferably an investor themselves. Another good thing about working with real estate professionals when you're just starting out with limited funds is that most don't charge anything upfront for their advice/information and only get paid if you purchase something.

BTW I grew up in KC, hope all is well there.

First, I'm a broker, not a lender, and I could be wrong, or just lying, but here is my understanding of an FHA multifamily owner-occupied.

You can apply 75% of current rental income to your income to qualify for an FHA loan, but lenders can have different overlays that will affect this number. I would recommend finding a lender who is experienced with FHA multifamily owner-occupied. Good luck.

I would begin by talking with other investors in the area and ask for referrals. There are some BS artists out there who will screw your deal up when they can't perform as promised, but a good referral helps screen them out. Then compare their rates and fees. If you are a first-time investor, some lenders will be leary to lend to you, and you will probably pay higher fees and be required to put more money down until you have a track record.

States vary a lot on this so be sure to get Texas-specific advice. Also, it will depend on the type of loan and agreement. I would suggest finding a local lender who can help you with these questions.

I don't believe cryptocurrencies are developed enough yet, but one day they will be. Currently, they are treated more as an investment like gold than a means of exchange. They will need to become more stable and as easy to use as a credit card, then we will see their use greatly increase. There are arguments that they are not backed by anything or that digital monies are insecure, but your fiat money in the bank is stored electronically and backed by nothing but a promise. 

I need a referral for a mortgage broker who does FHA, owner-occupied, multi-family, mortgages in Arizona.

Thanks.

Thanks for the replies. Usually, I disqualify any open BK. But my thinking is that even if they don't follow through on the Ch13 then go Ch7 and claimed me as a creditor, Section 8 pays me directly as much as I could get in the private market anyway. The tenant would be paying very little of the rent.

I need some advice from attorneys or landlords experienced in dealing with an applicant with an open chapter 13 bankruptcy. Would you rent to them?

Details: Qualifies except for BK. Open BK 2014 and closes 3/2019. Section 8 pays most of the rent.

Thanks for the help.