All Forum Posts by: Nicholas L.

@Ryan Arsenault I have some questions for you.

You said "I'm trying to get my next deal started."  Will this be your first ever investment property? And have you ever done a BRRRR before?

You said "I also have about $20k in cash."  Is that ALL of your earthly cash?  Or is that in addition to your emergency fund?

I think it's perfectly reasonable for an SO to want to launch a real estate endeavor from a place of financial strength.  $20K isn't a lot of cash.  So it may less be about convincing... and more about strengthening your financial position.  Then launching.

Thoughts?

@Toan Dang I think this is a great question, and there are lots of good BP threads on it.  See, for example, this one:

https://www.biggerpockets.com/...

And if you haven't yet, listen to Spencer Cornelia's 2-part BP podcast.  Lots of great lessons in it.

@Nicole Martin did this end up happening?  I'm just over in Mars and would be interested in future events.

@Michael Saunders I haven't invested in any crowdsourced sites but... this is a very different type of investing than buying individual properties.  Any capital you invest could be locked away for years.

@Nikk Wong leaving aside the partnership question... you said each of the units "nets" $1700.  That can't be right... did you mean that each unit rents for $1700?  If so, you're going to pay $250K a unit for units that only rent for $1700?

@Jayden Ortiz taxes are off.

@Bryan Gregory

I just want to add a thought on renting.  If you will keep this property and have a long term plan for it, such as making it a rental if you leave the area, that's great.  But renting in the short term is not a bad deal and does not throw money away.  When you buy and sell properties you pay significant fees in the form of closing costs, commissions, repairs, etc.  Conversely, as you probably know, when a lease is up... you just move.  No fees.  So just keep this in mind.

@Ezra Shami do you have any savings?  If not, stop.  Get savings.  Then re-engage.

@Drake Balma

What are projected rents?  Why would this be a good deal?

@Omar Rachid

wondering if the money I need to put in can be added to the mortgage or will I need a separate line of credit?

• Call banks.  Look into a 203K loan.  But... you need reserves no matter what.  So if you're looking to finance absolutely everything - down payment, loan, rehab, etc. - you may want to save up a little more first.

Additionally, a mortgage broker I worked with previously suggested that before applying for a mortgage that I try to not have any other outstanding loans since the loan to debt ratio would hurt my chances of being approved for a larger amount, is there any accuracy to this? I wonder because I have student loans to take and I may be getting a car note, but wondering if that is the wisest thing to do considering that I will be applying for a mortgage within the next 3-6 months.

• All debt contributes to your DTI ratio.  So if you take out a new loan, it adds the the debt side.  You can ask for your broker to factor in debt you don't have yet and tell you what the impact will be.