All Forum Posts by: Richard Advani

Quote from @Tiffany Revis:

Hey everyone, new to the group and going to be getting my first rental property ready to rent.

 Welcome and good luck with your first investment. Is this going to be a property that is local to you? I have over 20 properties across the country, feel free to reach out with any questions.

Quote from @Dave Skow:

Quote from @Christopher Murphy:

Quote from @Dave Skow:

@Christopher Murphy- let me know if you would like a referal for a  good  Loan person .....as far as  getting pre approved -  doing this with one lender  ( maybe  2  ) is ample 

 This would be awesome! My buddy is looking. I have heard shopping rates is worth it since it only takes one hard credit hit if all inquired in the same period. Shouldn't 3 be made for rate due dillegence?

@Christopher Murphy  1)  heshould be able to  get  as many  quotes as he wants  without any credit  pulls  ...he  should  use same  parameters  and call  the  lenders  on the same day and ask for  quotes ...then make a  decsion to get pre approved with one .....if a  lender is saying they cant  provide quotes without a  credit report- I  would recommend not  using them ...  Please  email me and  I can  forward the referral  to you 

 Amen and agreed. Every lender has the ability to provide an quote based on an estimated credit score.

Quote from @Angelo Pana:

 Hello,

Looking for brokers who specialize in VA home loans, looking to purchase my first property, this will be my primary.

Thank you,

Angelo Pana

 Hi Angelo,

I have closed hundreds of VA loans and have been in the mortgage industry for over 16 years. What questions can I answer for you? feel free to DM me.

Quote from @Vladimir Gostrer:

Quote from @Richard Advani:

Quote from @Vladimir Gostrer:

Thanks Lorenzo, I want to purchase a new primary residence and keep this one as an investment property. Would 3.5-5% be enough in this case? What type of a loan is that?

 Hi Vlad,

You can purchase a new primary home with 3.5-5% down however that is limited to a loan amount of 970k in San Francisco. If you are trying to purchase a property with a loan amount over 970k you will likely need the traditional 20% down. There may be a way to pull some equity out of your current property to aid with the downpayment for the new purchase as well.

 Thanks Richard. This is helpful. Is this a San Francisco rule specifically?

 Each county within the US has its own loan limit to be eligible for a conventional loan. Conventional loans allow the lower down payments of 5% I mentioned earlier.

Most counties in the Bay Area allow the 970k which also happens to be the max loan amount in any county in the US.

I have been investing out of state for over 14 years. I live in CA and own properties in various markets across the country. While I do have a few rental investments in CA, investing out of state has allowed me to invest in strategic growth markets that were out of range in california. Positive cash flow and lower cost of entry is the main reason most investors venture out of state. That being said, its important not to generalize all out of state investments in to a single bucket as each market offers its own set of pros and cons. Invest wisely.

Quote from @Vladimir Gostrer:

Thanks Lorenzo, I want to purchase a new primary residence and keep this one as an investment property. Would 3.5-5% be enough in this case? What type of a loan is that?

 Hi Vlad,

You can purchase a new primary home with 3.5-5% down however that is limited to a loan amount of 970k in San Francisco. If you are trying to purchase a property with a loan amount over 970k you will likely need the traditional 20% down. There may be a way to pull some equity out of your current property to aid with the downpayment for the new purchase as well.

Quote from @Christopher Murphy:

Hi All,

I have a partner looking to get pre-approved in Austin. Can we get a few lenders that those in the market can recommend that they had a good experience with? How many should he get pre-approved with...5 at least?

TIA,

Chris

 Hi Chris,

Its a good idea to interview a few lenders to determine the best lender to suit your needs as well as to have a few lenders to compare rates with. That being said, you really only need to get pre-approved with one lender. That does not mean you are obligated to use that lender if your offers gets accepted but will help minimize the number of credit pulls you have if getting pre-approved with numerous lenders. I am licensed in TX and can be of assistance. Feel free to DM me.

Quote from @Rose Frantz:

I just purchased my first condo at int rate was 5.8% - do I buy points to get this down a bit or leave it and refinance in the future if rates go back down? HELP!

 As others have rightfully said, run the math vs. the length of time you plan on being in the property. All you basically need to do is calculate the cost of the points vs. the savings in monthly payment and determine your breakeven period. DM Me if you need additional assistance in how to calculate this.

Quote from @Morgan Eriksson:

I'm not a fan of keeping it seperate. We tried it, and ultimatley went back to one back account. If you have seperate LLC's for different properties then it makes sense, but ultimateley we did just one account then have the financials of every property managed in buildium

 agreed 

Quote from @Tyler Shoaf:

Quote from @Richard Advani:

Great job on your first purchase, sounds like a home run! I think its important to find a middle ground that is comfortable for both you and your wife. Leverage is a great way to accelerate your real estate investments however its important to leverage responsibly. Is your plan to duplicate what you already did with your primary home or to use the funds to buy an existing home that can be used as long term rental? I would start slow, with out of state investments you don't always need a huge amount to purchase a solid rental. Maybe use some equity to buy one, rent it out, get a few months of rent in the bank, share the success with your wife and then see if there is a comfort level to continue.

Feel free to DM me if you want to discuss in more detail.

 The goal is to buy established homes or rentals that may need some work. I have a large pool of construction / contractor connections a mix of family and friends in Indiana and Kentucky. I want to leverage those connections to help keep things sorted as I work in Southern Utah now. More hands off building, with the possibility of building new duplex to fourplex apartments in the future. Would 30 to 50k in cash from my saving help get the ball rolling maybe dump more fund into saving do the first home or two with that and leverage the house for bigger progress after 6mnths or a year? 

Investing somewhere local to friends and family is a great idea. Depending on the price range you are looking at 30-50k could be enough for you to put a downpayment on a rental in one of those markets  and a great way to get your feet wet. Once you have a closed deal or two you will likely feel more confident to leverage your primary home to keep the investing going.