All Forum Posts by: Paul D.

Hey BP!

      I have been planning for some time now on how I am going to purchase my first deal and start my real estate business investment. I would like to house hack a duplex or possibly a larger multi-family. I am trying to come up with some creative financing. I am planning on putting money down, but I wanted to also try to syndicate some money as well from people and friends I know.

     If I wanted to raise capital through syndication how exactly does that work with paying them back or presenting them the idea? I want to make sure I create a successful deal and make sure everyone is happy at the end and gain some trust for further investments as well. 

     Im curious of what percentage to pay them back with and also wondering if there is anything else out there that I do not know of that I should know. Any information about this topic would be greatly appreciated! please drop some links here as well on the topic that you think I can read and gain knowledge from. 

Thanks BP

Im preparing to invest in my first property. I just saw a FSBO house and its looking like a multi-family home which is the market I want to invest in. I have thoughts of doing an seller finance here but I won't know for sure until I call them and seek more information about the home and their motives. What are some good questions I can prepare myself for the owner to get information from the owner that way I can run the analysis to check if its a good deal?

Ok thank you so much for you advice! @Samantha Klein if I have any other questions I will def let you know. Also if you have the time check my latest post. I have a updated summary of a business plan of my strategy. If you can check that out Im sure your going to have the same advice,but I would much appreciate it! I linked it in one of the comments on this post "Summarized Business Plan". Thanks so much again.

@Samantha Klein oh ok that makes a lot of sense. So what you are saying is keep my strategy with paying down the mortgage at the speed I want too BUT when I have enough equity paid into the property THEN pull it out and invest into the next property with say such as a HELOC.

 So instead of having the goal to be paid free and clear as quick as I can. I should be thinking pay into the property and raise enough equity for another down payment as quick as I can. My money will be working much harder for me if I do it like this then right?

Thanks  so much @Christopher Giannino @Ryan Arth for the response. much help. Check out the link below as this is my latest update to the business plan I have set. Its a little more detail but not exactly. I posted it as a quick summary for  BP forums sake and I wanted feedback on if this strategy sounds solid. That last post was a few weeks back. After more research and studies I came up with an updated one. Thanks guys appreciate it so much! 

Summarized Business Plan

Hello BP, I'm 26 I'm starting to plan my first deal. I still live at home with my parents but I have thoughts of getting into real estate. The thought of renting drives me nuts and makes no sense to me. I'm getting to the point where I want to move out and so if I do I want to own. Not rent. I want to make a return and not only that but learn real estate investing. I am running my own business at the moment and figure I get into this in hopes to grow a strong portfolio in time and hit my life goals. With all this said. My plan is that I'm thinking of looking into MFHs and house hacking it. Preferably a 4 plex or 3 plex if I can't find anything in the market but I figure more rooms under one roof the better. I am looking in the north jersey market. I figure to FHA loan on one of these homes, live in there build equity until I want to move out(after the year) into another home or buy another investment. My strategy of payment is to find renting numbers so that my tenants pay the mortgage, pmi, taxes. (Let me know if I'm missing anything that's included for debt service). I myself instead of contributing to the "rent" want to instead put money strictly into the principal to get it down as much as I can as fast as I can. That way a huge chunk of my money doesn't go into interest and my debt can be paid down much faster. Does any of this make sense of the way I'm thinking? I am open for all suggestions. I'm looking to make my first deal and just curious how I should finance it. There's only so much money I have saved up so I'm trying to be as creative as I can. Thanks in advance guys in new in this and appreciate the help!

Hello BP!

        I have been planning and studying past 6 months and want to make my big investment move in 2017! Here is my business plan summary please give me some feedback I am open to any ideas. I am curious of close I am to being on track and having a well thought out plan. Thanks guys for your help. Heres my plan :

1)I want get my foot in the door by pulling out an FHA loan and owner occupying a multi family. (preferably a 4 flex)

2) Through correct analysis of numbers and buying right, I will figure out what the fair market value is of the property and offer at a 10% discount so I can buy with equity into it. I will hope to have a COCROI of at least say 10% (thoughts on that?). Also I want to have a cash flow of 200 per unit. 

3) I currently run my own business so time is very limited. I want to higher a property manager. Through analysis stage if the numbers are meaty enough and I can still cash flow why not right? ( I do plan on buying more properties)

4) As I live in the property, I will have my tenants pay for the mortgage and expenses. My plan as also a tenant will be putting money into the principal bi-weekly to get it down more to cut the interest and also build equity faster. (once again ill be able to dump money in from my income of my business to pay it down faster)

5) Once I have enough equity into the property I would like to take out a H.E.L.O.C and roll that into a down payment for another multi family. 

6) I will then repeat this process and let this become my system if all comes to plan and is successful.

My short term goal is to have monthly cashflow to cover my personal expenses. I then like to build up my goals to financial freedom and more. Is this a good way of thinking or is there anything I need to focus more on. I have a much more detailed BP in my computer but this is it in a nutshell. Looking forward to the feed back guys. THANKS! 

Hey @Keon Cox Im still looking into my first investment as well and looking at MFHs. Im looking from a triplex to a four plex. What I plan on doing which might help out in your case is that I plan on pulling out a FHA loan on the property which will allow me to only put down a 3.5% down payment. How ever you have to live in the property for a certain amount of time and also there is extra interest (PMI) added onto the loan. Just an idea you can look into.

or you can just find how much it is and get a conventional loan for the bank, but you'll have to put at least 20% down on the property. If you have the resources go for it.

Best of luck!

@Chris Gibbs thats sweet man best of luck! Now will you be managing this property yourself? If you don't mind me asking what type of strategy or systems do you have in stored for the property. This is an area that scares me and I am reading and trying to learn on. Im not sure if I should manage it myself or gave a property manager. I know the costs might go up but if I can cash flow then why not right?

Hello BP, I'm 26 I'm starting to plan my first deal. I still live at home with my parents but I have thoughts of getting into real estate. The thought of renting drives me nuts and makes no sense to me. I'm getting to the point where I want to move out and so if I do I want to own. Not rent. I want to make a return and not only that but learn real estate investing. I am running my own business at the moment and figure I get into this in hopes to grow a strong portfolio in time and hit my life goals. With all this said. My plan is that I'm thinking of looking into MFHs and house hacking it. Preferably a 4 plex or 3 plex if I can't find anything in the market but I figure more rooms under one roof the better. I am looking in the north jersey market. I figure to FHA loan on one of these homes, live in there build equity until I want to move out(after the year) into another home or buy another investment. My strategy of payment is to find renting numbers so that my tenants pay the mortgage, pmi, taxes. (Let me know if I'm missing anything that's included for debt service). I myself instead of contributing to the "rent" want to instead put money strictly into the principal to get it down as much as I can as fast as I can. That way a huge chunk of my money doesn't go into interest and my debt can be paid down much faster. Does any of this make sense of the way I'm thinking? I am open for all suggestions. I'm looking to make my first deal and just curious how I should finance it. There's only so much money I have saved up so I'm trying to be as creative as I can. Thanks in advance guys in new in this and appreciate the help!