All Forum Posts by: Ryan Daigle

Hey @Brian Alvarado,

Not sure about the 2-unit distinction. I believe the requirements for an FHA loan are that it must be your primary residence. So you can buy a 3-family, live in it for a year, then go buy another 1-4 family that you will live in and get another 3.5% down loan.

Hey @Ryan Evans, you're definitely on the right track here. Some additional items to make sure are considered:

• Make sure you include a due diligence period that starts only when you've received all requested docs
• Part of those docs should include bank statements so you can verify rent roll against actuals (and reviewing the statements may also bring to light other aspects you wouldn't have been aware of otherwise)
• Security deposits should be transferred to new PM
• Pro-rated rents for the month of close are transferred to new owners and reflected on HUD
• A list of all section 8 tenants, if any. Since HUD is a third party in these leases, you need to know who these people are and in what standing is the lease with HUD so you get paid

Hope that helps fill in some of the blanks!

@Ryan Dossey I wasn't even aware that this was a thing, but I'm pretty impressed by the results!

@Luke Carl ah yes - you're hitting that magical point in running a business where you're too swamped to invest in improving the processes, yet can't grow any further until you do 😱

Unfortunately, there is no silver bullet when you're at this point. Hiring a VA can be your long term goal, but even getting them up and running will take some of your time and effort.

I would create a list of the menial tasks that take up the majority if your time (so lowest value, highest cost), and make time each week to automate it away or train somebody else to do it for you. Software can definitely help, but it needs to be setup too.

Have to make the time to invest in the business to unblock your next level of growth. But that means you're having success, so congratulations!

@Account Closed love how deliberate and focused you're being with this decision! If you've decided cash flowing real estate is your primary goal, then of the cities you list OKC is going to be your best bet. It's not a hugely dynamic market, but is one of those steady growers. Not sure how exposed it is to the energy market these days, but slow and steady sounds pretty good right now!

Hey @Luke Trevino,

> What is the best way to set up this potential seller finance deal?

That depends completely on your needs and what the property can support. One of the benefits of seller financing is that you can structure it however you want.

So first step is to look at the deal and figure out what its needs are. Do you have a lot of rehab/capex in the first few years? Then maybe an initial IO period is necessary. Is it fully stabilized and you want to maximize cash flow? Then maybe you drive towards the lowest possible interest rate and longest amortization period.

Of course, you have to marry your goals with the sellers'. If the seller is looking to get an infusion of cash, then having a big down payment might be more important to them than a high interest rate.

It's all so flexible - be creative and be very clear about you and your sellers' goals.

Good luck!

Hey @Brian Bauk, I think you're going to want to have a good attorney in your corner even without using private money. So, yes, get one! Always good to have a professional review any contract you enter into and advocate for your interests.

Hi @Angelique Tinney. Will this be recorded for later viewing?

@Christopher Smith You can find some here on BP :)

I'm in NC and would be interested in hearing about this deal. Me and my investors are hoping to find such opportunities in this market. Email me?

I've looked at this business model in the past (and may again in the future). When you're running a business like this with such a leveraged model and high fixed costs, you need to have a fair amount in reserves since you're so screwed if something goes wrong. What was the "standard" guidance these programs offered for reserve funds? If they advocated for anything less than 3-6 months in reserves then they were being negligent (whether practitioners followed the advice or not is a whole other issue).