All Forum Posts by: Michael Dumler

@Beethoven Penalo to my understanding there is no rule that denies a borrower from having a conventional and FHA insured loan at the same time. However, an FHA insured loan will require that the intended purchase property is your primary residence and that you must live there for a year. My question although, does your analysis cehck out for your first home as a rental? AKA will it cash flow? Hope this helps!

@Rob Beeman so wholesaling but rather then assigning the contract you are closing on the property, then reselling at a higher price to a buyer in mind? AKA whole-tailing. I would recognize Zillow's past summer mistake and account for the fact that this "new technology" in the real estate space has a long way to go. Honestly, the strategy in my opinion is still pure speculation and bets on the fact that home prices will keep rising. As the article mentions, this is a high volume strategy in order to see a profit. 

@Carmen Simone acquiring off-market deals in my opinion comes down to consistency and building rapport with the home owner. Of the propeties you've door knocked and written to, how many times have you followed up? In consideration, I would not hop around from strategy to strategy thinking that there is a golden tactic to follow. At the end of the day, you need to add value to the home owner in order to build trust in your business. Furthermore, it is important to track your numbers and response rate. How many doors knocked or letters sent have had some sort of interest/response? The properties where you are receiving feedback are the ones you need to be targeting, because when the owner is thinking about selling, you therefore come into mind. Hope this makes sense and helps! 

@Marc Bernal not that this is your only option, but in my opinion you should first pursue a house hack deal. Continue to save capital while building your credit, and educate yourself on the investment strategy by reading, listenting to podcasts, and networking with other investors that have or currently are house hacking. If a solid house hack deal comes about but you don't have the means to finance the property, potentially get a co-signer for the mortgage or seek out private funds. The reality is syndication and seller finacing deals are going to eat up at your time unless you are fully committed toward building a business upon them. House hacking provides a good entry point into real estate and will kickstart your investment portfolio. Hope this helps!

@Yashar Fred the sales commission can always be negotiated, but you're correct, it is usually the seller that pays both the listing and buyer's agent. Generally, the sales commission is 6% of the pruchase price of the property. In your case, the seller would pay your agent and is technically saving on the sale of his/her property. Hope this helps! 

@Tony Zhang visit your Secretary of State entity website. Most states should have an online registeration process for your LLC but you can also mail in the necessary information if needed. The process should honeslty take 15-20 mins if that. Hope this helps!

@Mark Berardi you should sell when you have another asset on the table that needs to be financed but will perform better then the current property, hence the reason why so many investors 1031 into a new deal. Technically, you can calculate annual appreciation based on past data and metrics, but there are also many other variables/factors to account for that would make it nearly impossible to accurately predict how your portfolio would perfrom 5, 10, 20 years down the line. Hope this makes sense. 

@Marc Bernal not that this is your only option, but in my opinion you should first pursue a house hack deal. Continue to save capital while building your credit, and educate yourself on the investment strategy by reading, listenting to podcasts, and networking with other investors that have or currently are house hacking. If a solid house hack deal comes about but you don't have the means to finance the property, potentially get a co-signer for the mortgage or seek out private funds. The reality is syndication and seller finacing deals are going to eat up at your time unless you are fully committed toward building a business upon them. House hacking  provides a good entry point into real estate and will kickstart your investment portfolio. Hope this helps! 

@Anthony Phillips a lot of variables to unpack here when trying to acquire an off-market deal. First and foremost, you're correct, there are plenty of companies that provide the same service to home owners and for that reason alone you need to stand out. The best way to stand out to a homeowner/potential seller is by building rapport with them. When sending a mailer, you need to attach value to the letter that will in one way or another be useful to the owner. If you plan to send a simple white page asking if the home owner is interested in selling, chances are they will throw it out immediately. Furthermore, you should ideally either work wth a resourceful agent to guide you through the transaction or at the very least an attorney to provide contract forms. Having your finances lined up is a must. Imagine if the seller is interested, but shortly therafter finds out that you are not pre-approved. Not a good look for your business. Lastly, if in the event you have a good deal under contract but cannot fund the transaction, then either wholesale the property or work with a private lender. Hope this helps. 

@Caleb Barbosa this is a very subjective investing question, but if I had to pinpoint one strategy when starting out it would without a doubt be house hacking. What better way to accumulate properties overtime by utilizing cheap financing and having the assets pay for themselves? If you're in a postion to house hack a new property each year and turn the previous one around as a rental, that is in my opinion by far one of the best ways to grow your portfolio.