All Forum Posts by: Pete Storseth

@Chris Mason

Sure. Money to make money. The normal everyday answer is always there. Get a better job, make more money. I know.

I did sales and did very well for over 7 years, it wore me and bore me until I couldn't even sleep. It was time for a change, I had a mother to take care of so I retreated in a lit of ways. But I'm no coward.

Real estate isnt a get rich quick scheme. It's a lifestyle from what I've learned this year so far. Last year I made the goal, saved and lived on pennies. I still do. I save and i dont go out. I dont pay rent in return for driving my mom to doctors. I work 5 days a week at a retail store. I study real estate strategy every waking hour I'm not at work, and mostly have audiobooks and podcasts about real estate in bluetooth earpods even at work.

I could drive an uber, not enough.

I could sell used cars, probably very good at it. I could do sales again and all my ambitions get stuck on the side because I dont have time for real estate because of long hours. But no.

I'm finding ways, without banks I guess, to find deals, find funding, and find financial freedom.

Searching for doubt in my words is great. I was in my pity party for one day out of 3 years since my career change. My heads high, my stomach is small, I'm leaner and sharper than ever. And this is just my beginning, 40 or not.

@Adam D Rinehart

Yeah after the day I had, i was pretty negative.

@Adam D Rinehart

Thanks for the referral. I'll check it out today.

I should have mentioned, I'm 40, so I wanna get this boat in the water already. And I live for free currently, so though I dont expect to cash flow day one and doubt I'll see that deal in houston anyway, I am gonna be pretty picky about the numbers.

I'll use a conventional bank loan, whether its 3% or 25% down, but I dont think the MLS is gonna have my deal. Its gonna have to be a 80% deal. Its gonna have to involve some rehab for at least minor cosmetic and forced appreciation.

My work is cut out for me. Hopefully, today's lender hunt goes a little better and I come home and research those Grant's, get one for 15k, save up, find a deal, and by September I'm working on the upgrades in my side of a multifamily or building a ADU on my new property.

@Stanley Ezeadi

Thanks for the pep

Doubling my income wont happen at my current job. I can get another job, but 1) that will reset my work history, and 2) I like my job.

Saving more for a larger down payment, would lower the monthly payments so that the DTI would be less risky, and saving more would also put more in reserves.

I'm not afraid of the landlording. I have rent hacked before, and I'm not going to let capex scare me out of a deal. I will check the big ticket items and replace them upfront or get a warranty on them from the seller or get a discount from the seller for them to replace them upfront. Sure, things still break, but between insurance and warranties, the first year shouldnt have capex nightmares if I buy smart. Besides, I'm still running numbers with capex in the expenses.

@Dustin Mathenia

I've been searching. Craigslist, however is flooded with owner fiance companies with the 15% down, 10% interest. They are stealing my idea! Haha.

Gotta peruse through listsource, skip trace and call high equity non owner occupied and send letters.

Driving for dollars could work for me too, get the foreclosure list, NOO list, and hit doors with some business cards, TRECs, a calculator and a legal pad.

Maybe a website, a virtual assistant and Google voice.

Hit every real estate meetup, ask every person if they wanna sell owner finance to a beginner, and throw a bucket of red paint in the air and try to not look like a bloody mess...

So I'm trying to start my real estate portfolio with house hacking, refinancing, and cash out pays for the next down payment.

My credit is 711, and my debt is low, BUT I only make 23k a year. Ew.

So I go to banks today, a mortgage company and a private lending company.

Not good, but dont worry, I knew I didnt have money.

Banks told me my debt to income is too risky, and one told me about down payment assistance grants offered in Houston and Harris County. Pretty cool idea, I'll be looking into that.

Mortgage company was a joke. All bad reviews online, I didn't even mean to go there, just happened to walk by. This lady was super rude, pretty much laughed me out, but whatever.

Private lending company said they do not allow owner occupied, gotta pay 25% down standard, and worst if all no refinance option without a 5% prepayment fee. Okay, not sure how I can use them ever.

I still have appointments at my own bank, Chase. A credit union that has a few reviews on Yelp, all positive. And like I said, I am not bummed out at all, i knew i didnt have money.

Still, cant help but to wonder whether house hacking is gonna work for me. Partnering would point me to finding someone with the money to get started on a conventional loan, let me manage everything and split the profit, but then how will the refinance work, why even house hack that?

What about wrapping mortgages? It's just as hard to find multi-family in my market that cash flows with me in one unit, and I really dont see the risks. As long as the numbers work and everyone knows what's going on, why not?

Seller finance could work too, but I would house hack, I'd just make sure the rents exceed my payments, good luck...

Any house hackers, feel free to jump in and give some ideas for funding or finding a way to qualify for a fha, ready30, 203k, or home possible loan.

@Dustin Mathenia

What about a personal loan then?

I just don't see the risk. What's the worst case scenarios for wrap around mortgages?

If the buyer defaults, I do cash for keys and get another buyer in. As long as the payment makes sense and is just a little higher than they pay for rent, any renter would rather own the house.

I have registered for two webinars but have yet to find where to watch them. Help

@Dustin Mathenia

Thanks. I would pass too, and assume that deal wasn't even eligible for someone to sub to, just cash buyer there.

I will assume that the RMLO is the most obvious factor that separates LOS and a wrap.

Curious about finding a partner in this. Wouldn't a hard money lender work in some cases?

@Jeff Adams

You got it man, no analysis paralysis bud.

Buy the brrrr book. No strategy is better. If I had the m ok ney I'd start there. Instead I will be house hacking... no biggie