All Forum Posts by: Travis Beehler
Travis Beehler has started 17 posts and replied 300 times.
Post: Financing a $60k Property...literally the WORST!
- Rental Property Investor
- Vancouver, WA
- Posts 308
- Votes 144
I buy my properties through a commercial lender, but they are residential properties. Try checking them out? I've financed as little as $18k through them.
Post: Every applicant seems like a scam
- Rental Property Investor
- Vancouver, WA
- Posts 308
- Votes 144
Here's a quick thought: How about hiring a property management company? They will deal with getting a quality person in there, and you don't have to worry about the headache?
Post: How Do I Build a Rental Property Portfolio
- Rental Property Investor
- Vancouver, WA
- Posts 308
- Votes 144
Originally posted by @Peter Padalino:
Never ceases to amaze me the sense of community here on BP and the willingness of everyone to share such a wealth of knowledge....thanks everyone for the advice. I think I'll make an offer today on that first rental!
Thx
Awesome! Keep us posted on how it goes! Trust me, when I signed my paperwork on my first rental, one of my first thoughts was "Oh God, what have I gotten myself into"?
It gets MUCH easier and better with time! No matter what, still to the numbers, and you can't really go wrong.
Post: How Do I Build a Rental Property Portfolio
- Rental Property Investor
- Vancouver, WA
- Posts 308
- Votes 144
Originally posted by @Jeff R.:
Originally posted by @Travis Beehler:
Originally posted by @Peter Padalino:
Morning all!!...ok so I've been on BP now for 6 months and seem to have missed something really basic. My wife and I are committed to the RE business, but one question keeps popping up. How do afford/qualify to build a rental portfolio? We have a mortgage on our own home have a decent 6 figure income and have been pre-qualified for a second home purchase, but pretty sure we wouldn't be able to get financing for another and another....Is it simply a matter of finding alternate means of financing for additional buy and hold properties? I'd love to get some advice.
Thanks.
Hi Peter,
People on here have all great advice, but I will add one more thing: Look at commercial financing. At some point, you will run into the debt to income ratio issue, plus having too many properties under your personal name. Last I checked, I believe it was something like 6-10 properties. Granted, you'll need 25% down on a property, but they don't care about debt to income ratios like traditional financing. They care if the property will reasonably generate cash. I've got 7 properties currently, and they are all financed through commercial financing. When I want to buy another one, I simply call my bank, pick a property and cut them a check.
Travis, do you have to show two years of business info(E.g. Business income) to be able to qualify for a commercial loan?
Hey! You're in my investment area! :) Originally I did, but I started my investing in Vancouver, Wa. But, the bank also wanted to take a look at my personal finances to make sure all was good. Once I got that initial bit taken care of, it was smooth sailing!
Post: Setup LLC/Ltd company before anything else?
- Rental Property Investor
- Vancouver, WA
- Posts 308
- Votes 144
I did the same as Jason. Set it up on Legal Zoom and never had an issue.
Post: How Do I Build a Rental Property Portfolio
- Rental Property Investor
- Vancouver, WA
- Posts 308
- Votes 144
Originally posted by @Richard Bradshaw:
@Peter Padalino I was in the same position after purchasing my first investment. I was low on down payment cash and wasn't sure if I would qualify for another traditional loan.
Then I watched @Brandon Turner's webinar on his BRRRR strategy and have been able to purchase 2 properties so far this year.
Essentially you have to find properties at a discount, purchase with hard money, private money or, of course, cash. Rehab property, rent, refinance and repeat.
Not sure what your market looks like, but inmine I have been able to find properties at a 50-60% discount. My HML lends up to 65% ARV which allows me to cover almost all of my costs without putting a lot of cash into the deal. I rehab and refinance at 75% of ARV with a conventional loan. As long as your properties are cash flowing you shouldn't have a problem refinancing. I have even been able to pull equity out of these properties which will allow me to have more cash on hand to purchased multiple properties at a time.
Hope this helps, good luck.
And thanks @Brandon Turner, that webinar changed my life.
Hi Richard,
How long do you hold onto the property until you do a refinance? I keep seeing banks want you to hold onto the property for a year before they will refinance at ARV vs. purchase price. Thanks in advance!
Post: How Do I Build a Rental Property Portfolio
- Rental Property Investor
- Vancouver, WA
- Posts 308
- Votes 144
Originally posted by @Peter Padalino:
Morning all!!...ok so I've been on BP now for 6 months and seem to have missed something really basic. My wife and I are committed to the RE business, but one question keeps popping up. How do afford/qualify to build a rental portfolio? We have a mortgage on our own home have a decent 6 figure income and have been pre-qualified for a second home purchase, but pretty sure we wouldn't be able to get financing for another and another....Is it simply a matter of finding alternate means of financing for additional buy and hold properties? I'd love to get some advice.
Thanks.
Hi Peter,
People on here have all great advice, but I will add one more thing: Look at commercial financing. At some point, you will run into the debt to income ratio issue, plus having too many properties under your personal name. Last I checked, I believe it was something like 6-10 properties. Granted, you'll need 25% down on a property, but they don't care about debt to income ratios like traditional financing. They care if the property will reasonably generate cash. I've got 7 properties currently, and they are all financed through commercial financing. When I want to buy another one, I simply call my bank, pick a property and cut them a check.
Post: Thank you BP, I bought TWO houses today!
- Rental Property Investor
- Vancouver, WA
- Posts 308
- Votes 144
Internet high five! Good job!
Post: Mom wants to invest
- Rental Property Investor
- Vancouver, WA
- Posts 308
- Votes 144
All great suggestions, and I would add this one: Get a property manager who knows her financial goals and lines up with them to help her plan things out. Property managers will deal with all the day to day stuff that she likely won't want to deal with.
Post: Go from zero to large property?
- Rental Property Investor
- Vancouver, WA
- Posts 308
- Votes 144
Personally, I wouldn't go with a large amount of units first. The main reason, is that if something goes sideways, you aren't as "savvy" as you think you are, or any other number of issues that may come along, you'd feel a whole lot better "losing" on a 1 unit vs. 50 units.