All Forum Posts by: Michelle Crochet

Congratulations on starting your real estate journey, Reese! HUD properties can be a great option for first-time investors because they can offer below-market pricing and other benefits. Here are some pros and cons to consider when looking at HUD properties:

Pros:

-Typically sold at a discount to market value

-Can be financed with low down payments, including FHA loans which require just 3.5% down

-May be available to investors as well as owner-occupants

-May have fewer competing bids due to the stricter guidelines for bidding and financing

Cons:

-HUD properties are sold as-is, so you may need to invest additional money in repairs and renovations

-Bidding can be competitive, and you may need to submit multiple offers before being successful

-HUD properties are typically sold through an auction process, which can be confusing and stressful for new investors

-Some HUD properties may have title issues, such as liens or other encumbrances, that need to be resolved before purchase

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It's important to work with a lender who is experienced with these types of properties. FHA loans are a popular financing option for HUD properties, but there are also other loan programs available that may be a better fit for your needs. Make sure to do your research and shop around for the best financing options. You can also check with local real estate investment groups or attend auctions to find potential deals. Your local real estate agent can help you find new connections as well and can help you with more specific advice when it comes to your local area.

Overall, HUD properties can be a great way to get started with real estate investing, but it's important to do your due diligence and understand the potential risks and rewards before making an offer. Good luck, Reese!!

I hope to see you all later, cheers!

 It's alright, I hope to see you in the next one!

Congratulations on your successful investment! It sounds like you have a good handle on your current property and are ready to move on to the next opportunity.

Regarding your question about refinancing and pulling a HELOC, it really depends on your goals and what makes sense financially. If you can pull a HELOC and use those funds to invest in another property without needing to refinance, then that might be the best course of action. However, if you are looking to lock in a lower interest rate or longer-term financing, then a refinance might make more sense. It's important to evaluate your options and consult with a financial advisor or lender to determine the best strategy for your situation.

As for looking for your next deal, it's never too early to start scouting opportunities. Keep your eyes open for potential properties in your target areas and be ready to act quickly when you find a good one. Consider networking with local real estate agents and attending industry events to increase your chances of finding the right property. And don't forget to continue building your team of professionals, such as a real estate attorney, accountant, and property inspector, to help you navigate. Good luck on your journey, Ian!

Building multi-unit properties is a complex process that requires a lot of knowledge and experience. If you don't have any background in construction, I would recommend starting with some basic education on the subject. You can consider taking courses in construction management or architecture, or reading books on building design, materials, and techniques. You can also consult with professionals in the field, such as architects, builders, or contractors, and learn from their expertise.

In addition to formal education, finding a mentor can be a great way to gain practical experience and insights into the construction industry. You can try networking with professionals in the field, attending real estate investing events or local building associations, or even reaching out to experienced builders or developers in your area-- be sure to articulate your goals and interests clearly and demonstrate your willingness to learn and work hard.

Finally, it's important to understand that building multi-unit properties involves a significant investment of time, money, and resources. Before you dive into the process, make sure you have a solid business plan, financing strategy, and team in place to support your goals. Good luck with your journey!

Getting pre-approved for a loan is an important step in the real estate buying process, as it helps you determine your purchasing power and can make your offer more attractive to sellers. Generally, it's a good idea to get pre-approved before you start actively searching for properties, as it can give you a clear idea of your budget and save you time in the long run.

In terms of timing, I would recommend getting pre-approved as soon as possible, even before you have identified a specific property or area. This can help you narrow down your search and focus on properties that fit within your budget and financing options. However, keep in mind that pre-approvals typically have an expiration date, so make sure to check with your lender on how long the pre-approval is valid for.

In terms of the area, you don't necessarily need to know the specific neighborhood or city where you want to buy real estate, but it's helpful to have a general idea of the location and price range you are looking for. This can help your lender provide more accurate pre-approval information, and it can also help you focus your search and make more informed decisions.

I hope this helps, and best of luck with your 90-day challenge!

Hi Nick,

Welcome to the BP community! It's great to see your enthusiasm and eagerness to learn about real estate investing. Networking is a crucial component of success in this industry, and I'm glad you're taking the initiative to reach out and connect with others.

One piece of advice I would give you as a newcomer is to focus on building relationships. People are more likely to help you if they feel that you are genuine and are not just looking for a handout. Attend local meetups, join online groups, and seek out mentors who can guide you through the process.

Another suggestion would be to start educating yourself on the different strategies and financing options available in real estate investing. Understanding the basics of creative financing and market analysis can go a long way in helping you identify profitable deals and making smart investment decisions.

Best of luck on your real estate journey, Nick!

It depends on your specific goals and financial situation. If you have the resources and desire to do the updates yourself, buying the cheaper home and renovating it could potentially save you money in the long run. However, if you don't have the time, skills, or money to do the updates, buying the fully renovated home may be a better choice.

As for selling the home for a profit, that will depend on the local real estate market and factors such as location, demand, and economic conditions. Using the home as passive income by renting it out could be a viable option, but make sure to carefully consider the costs and responsibilities of being a landlord. There is also a choice of not choosing either of them because of the factors stated above; you will need to consult your local agent for professional help in order to get more clarity since they know your local market more.

Overall, it's important to weigh the pros and cons of each option and consider your personal goals and financial situation before making a decision; do seek help from a local agent :) Hope this helps.

As a first-time homebuyer interested in purchasing a multi-family property, you can research the programs available in your area for assistance with down payment and closing costs. Check with your state or local housing authority or contact a local real estate agent to learn more about available programs. Don't worry about wasting a realtor's time, as they can help you find the right property and the right contacts (such as lenders, etc) for your needs! :)

Come out for a meet-up with like-minded individuals to talk about investing. Bring questions! We will discuss financing options as a foundation but flexible to whatever topics come up organically. The location is in IDLE HOUR, 4824 N Vineland Ave. Los Angeles, CA | Date & time: April 13, 2023, 6-8pm