All Forum Posts by: Michael Kistner

@William Dolinko

   If this is your first deal overall I'd use an fha loan, 3.5% down on a multifamily if there's one available in your area.

   Hard money is a great tool but you need to be careful or you could end up paying a lot of interest. They typically loan money for 10-14% interest.

   Get a mf, use little money to get in, get some experience managing the property and fix it up, get some forced appreciation, tax benefits, and you'll be ready for that next deal in no time!

- Mike

No problem! Hope it works out 

@Brandon Knudtson

   I'd ask for references if you're really considering going with them and wouldn't pay them till the job is done. If they need money for paint or anything like that buy it yourself.

   But if they can't provide you with references from their recent work than I wouldn't go that route. You get what you pay for.

   Good luck and congrats on your first deal!

- Mike

I prefer to keep it to myself unless I'm around friends or asked directly about investing.

Then I'll share my strategies and successes. But like others have said, I wouldn't want my supervisors or co-workers thinking I had one foot out the door and miss out on a promotion or opportunity.

 If you're in real estate full time I understand the self promotion and deals that may come from it so can't knock that.

@Alex Silang

  I think most people ask themselves this question. I’ve staggered my loans; couple 10-year loans, 15, 20, and 30. It’s lowered my cash flow but what I make I use for reserves and reinvest. 

  Now I get better rates on the shorter teemed loans and forces me to pay them off early. 

  Just my strategy. Hope it helps!

- Mike

@Aubrey H.

    As of right now my plan is to take them to term. Things could change when I'm a year or two away from the 10-year loans being paid off I may just get them done early and open the cash flow but I'm not going to dump a couple extra hundred dollars to a 30-year loan to pay it off in 15.

@Aubrey H.

   I'm saving my cashflow for reserves and reinvesting. However, I'm staggering my loans so some will be paid off before others. I have a couple 10-year loans, 15, 20, and 30 year loans. By doing this I'm not concerned with paying any of early and the lower the loan term generally the better interest rate.

   Good luck!

 - Mike

@Mark Ryan Peterson

   Welcome to BP! Investing in real estate is a great way to create write offs. Fix and flips could end up hurting you more with capital gains.

    Depending on how much you have to invest I'd look for buy and hold investments. That way you can depreciate the asset as well as any expense that may come from it.

Holding your rentals wont help when it comes to taxes, it's a pass through entity but will help you will liability concerns so if you find a lender that will let you purchase your first ones under an LLC I'd go that route.

Along with rentals have you looked into IRA's or other pretaxed investing to lower your taxable income? Just another way to diversify your money.

  Hope this helps!

- Mike

@Account Closed

   I’d invest it. Either into another property or in the index fund like you’re talking about. 

   The next property you get look into  10, 15, or 20 year loans. You’ll get a better interest rate, a little less cash flow but overall more cash flow than you currently have. 

   I wrote a blog breaking down this strategy recently. I’m staggering my loans this way so I don’t have to go back and forth on which way to go. Some will be paid off sooner than others but the tenants are still doing the heavy lifting. 

- Mike

@Kim Morris

   Getting your license wouldn't restrict you from doing deals. You would have to disclose that you're an agent if you're calling about a property. Which could make it more difficult.