All Forum Posts by: Ryan Howell

@Stephen Bennett - if you haven't yet, I'd read Rich Dad Poor Dad. I would BRRRR. I want passive residual income. Now, that said, if you need money to live off of, then you may need to flip. If you plan to build a business and want that business to be a flipping business, then that is a valid strategy, but if you just want to flip a property here and there, I would keep whatever you can afford to. In 20 years you'll be glad you did.

@Joon Lee - I haven't personally done one since the new regulations.  My understanding (I'm not an expert) of the situation is Fannie Mae will only allow 7% of qualified loans to be investor or 2nd home mortgages.  This is limiting who can buy the loans on the secondary market and in turn making it more difficult and driving up the rate.  I don't have advice for your area, hopefully someone else will, but you can always try smaller local banks and credit unions.

@Thomas Farley - House hacking is probably the best and lowest risk way to start. I would see if you can get preapproved for conventional and FHA. If you find something that doesn't meet FHA standards and can swing a larger downpayment (maybe 15% for 2 units as an owner occupant?) then that will give you more options.

Listen to every episode of the BP podcast and soak in everything you can.  

Read Rich Dad / Poor Dad by Robert Kyosaki, Millionaire Real Estate Investor by Gary Keller, and The Book on Rental Property Investing by Brandon Turner.  

Join your local real estate meetup in your area and start spending time around successful investors.

@Jamie Derasmo - I think it depends on how likely you are to find a better deal.  Also, maybe there is a 3rd option in between these two - cash out refinance, reduce cash flow some and take out some cash for the next property?

Start networking with likeminded people.  BP is a start.  Look at local meetups and REIAs as well.  

We have started making buyers agree up front to pay the difference over list price and show proof of funds.

@Sam Morgan - technically yes, but I don't see why you couldn't right one check every month.

@Sam Morgan - Exactly.  Instead of filing 1 deed of trust (mortgage) for the seller's note and putting the lien on 3 parcels, break it up into 3 separate liens....for example sake - $200k on the house, $100k on one lot, $70k on the other lot.  Knowing the $200k is short term, you can maybe pay higher interest rate to make it desirable, etc. By having them individual, you have flexibility to refinance and pay off the seller's note on the house and keep the others.  I would recommend you have your attorney draft the promissory notes so you have the verbiage you need for what you intend to do.

@Sam Morgan - Can you do a hybrid of both?  Perhaps you can "break up" the seller financing into three seperate seller financing options - 3 deeds of trusts breaking up the total $370k between them.  This would allow you to refinance the house individually and continue paying on the notes for the lots?