All Forum Posts by: Michael Pearse

@Juan Davila Yes, you can get a conventional rehab loan for an 8 unit. Reach out to the small local banks in your area for loan options.

Best of luck!

@Matt Mcnulty The great thing about real estate is that you can start with little cash or a lot of cash. If you plan on entering the real estate business with little cash reserves, you will want to bring significant value to the people you work with. I would recommend partnering with another wholesaler and do everything you can to help them out. 

Be willing to:

1. Take on tasks you are not interested in

2. Have the drive to learn the business

3. Develop a solid relationship with the people you communicate with

4. Go the extra mile and learn how you can bring new ideas to the table to boost sales

5. Understand and earn the trust of investors, and they will keep coming back to you for the next deal

Best of luck!

@Andrew Monahan Sounds like you are making good progress, keep up the great work. I would recommend using a line of credit when possible. With interest rates still relatively low, it makes sense to use other peoples money to help make you money. You will want to run the numbers with the added interest rate. Though I can assure you that your cash on cash return will be significantly higher following through on this process. There are tax benefits/deductions for paying on interest. I would recommend further digging on the tax rules for maximum perks :) 

Use other peoples money when possible. Use your own cash when all else fails.

Cheers!

@Duc Minh Tran Yes, you can use a HELOC to purchase a 2nd home. I highly recommend this as you won't have to put as much money in the deal.

Cheers!

@Roong K. Finding off market deals is a little more challenging than looking on MLS, but it can be done. Attend local real estate meetings and build connections with wholesalers, investors, realtors, ect. Make it clear what you are looking for and have a pre-approval ready. Know what steps of action are necessary to analyze a deal and close quickly. Show that you are serious and want to do business with others. Know your stuff!

If you are looking to hire someone, I would recommend working with a wholesaler and build a connection with them. Explain that you want the relationship to be a win-win scenario. A real estate deal of making $5K for both sides is better than no deal at all. Keep that in mind as you move forward in your real estate career, and you will do well. 

Best of Luck!

@Cosette Trantow Going to a small local credit union is a great idea as they are more likely to give out loans versus large firms. By explaining your situation with past job experience you are more likely to get the loan you are looking for. Below are 5 questions to consider asking when meeting with a loan officer.

1. What interest rate and length of term options do they have to offer.

2. Do they offer fixed and variable interest rates. (both options are likely)

3. Are balloon payments required.

4. How fast can the bank close on a deal.

5. If you have an LLC, will the bank write out loans under your LLC business.

Hope that helps. 

Best of Luck! 

@Kena B. Connecting with investor friendly title companies is a great idea. I would recommend attending your local real estate socials to meet the teams you are looking for. This can lead to discounts and extra perks as they will witness your commitment in building relationships within the real estate community. 

Cheers!

@Twana McGrady In this situation, I would recommend working with a small bank for financing. I recommend using a conventional loan or portfolio loan as lower credit scores are more accepted than typical FHA and investment loans. If that does not work, you can look into getting a line of credit or personal loan.

Best of luck! 

@Zach Barber This sounds like a great opportunity to work with a bank of your choice to build a connection. Banks will have an appraiser review a property before closing. By working with a bank you can get a list of appraisers from them, and build a report with them. This will come in handy when financing is needed down the road. 

Best of luck! 

@Dan Trinh Yes you are exactly right on how you are calculating the 2018 premium, and dividing by the amount of days. Another option to get a more precise number is by talking to the insurance company that is used on the property. You can ask for a quote based off of those specific dates. 

Cheers!