All Forum Posts by: Theo Hicks

You want to have an idea of how much financing you qualify before pursuing deals. For example, if I can only qualify for $500,000 comfortably, I wouldn't put a $5 million deal under contract. Not only will you most likely lose money, but you will lose credibility with the parties involved (broker, lender, owner, etc.) by not closing on the deal.

If you don't have a track record, you need partners (as @Alina Trigub said) or start with family and friends and others who are currently in your network.

@Todd Dexheimer said it nice and succinctly. But to get the most accurate terms, reach out to a broker or local bank in your market and ask about their loan programs.

I would read through threads on the multifamily forum. See who is posting a lot and click on the links in their signature for more resources. 

Consider a 203k owner-occupied loan. 3.5% down but covers the renovation costs as well. Start with a 4plex to get your foot in the door and expand from there.

Thanks for the book shout out @John Fortes!

@Brad Cornell it varies but it can get pricy. The time isn't as relevant. Let the attorneys know the timeline you expect and ask them if they can complete the documents by then. However, it may not make sense at 16 units and under. I would try to put together a JV at that size (i.e., the investors have an active role).

@Bob Langworthy Thanks for the shout out! And you are correct. Look at every property (with or without a for sale sign) as a property for sale!

Speak to a securities attorney before you have a deal so that you know who you are using and what steps to take once you've identified an opportunity. Once you have a signed PSA, reach back out to that securities attorney to start the process.

Not sure how long each of your rotations are, but I would consider house-hacking each time you move to a new location.