All Forum Posts by: Scott W.

@Leland Bishop! Rule number one: get the property under contract so you have control of next steps.  Rule number 2: don’t break rule number one.  :-)

Lastly, if you need help looking for lenders, I would advise connecting with a certified private money broker who could work on your behalf and find the right lenders for you.  There are rules about self promoting, so you might have to look at peoples signature lines and read between the lines.  Hope that helps!

Hi Joe! You might have to expand your search and pay more interest so you can get a No income requirement and find an asset based lender. It's a little crazy right now with lenders being really conservative and holding back, but it's possible. A lot of the asset-based lenders want you to have the properties in a LLC and not be owner-occupied

Hi @Luke Schultz! I might have a little twist to the 401k comment. If you are investing in stocks and bonds (you most likely are) then taking a 401k loan is a good option to invest in real estate and use if you absolutely have to. I'd rather pay interest back to myself then to someone else. :-) All in all, it's probably best not to take the loan from the 401k for your primary residence because it tends to allow us to over extend ourselves and you are taking out retirement money to fund your current priorities. You can pay a little more interest to not get PMI or do a two loan option to overcome the PMI huddle. Find a great lender or broker that can help you wade through the ins and outs. Good luck!

Hi Garland!  Typically the roadblock that investors hit is when they go for their 5th property where traditional lenders shy away and you have to look at portfolio or commercial loans that cover multiple properties.  Find a good broker who will fight for you to get the best rate and negotiate on your behalf.  The secret isn't in the financing, it's in taking action and getting that first deal and then the next and then the next.  :-)  

Now to answer you questions head on.  Use file folders, excel, your bank or go fancy and use quickbooks or freshbooks.  (Just don't get lost in the weeds!!!  I found myself caught up in learning all the ins and outs and too many years passed me by with no movement.  I'm glad I started invested when i did, but I needed a big kick in the pants to move!  :-)  D

Does it really matter if you are sending 4-5 echecks/ACH to 4-5 different banks?  It's not that hard to keep track of and when it does get complicated hire a bookkeeper to help you. 

Just make sure you find profitable deals and don't chase appreciation...it's a great aspect of real estate but appreciation doesn't pay our bills...cash flow does!  :-)

Hi James!  I have a few lenders that might be able to help.  If you'll send me a message with some more details I can see if I can find a solution for you.

Sean, this has been a crazy time trying to get lending, but it's possible!  If you'll send me the details on this project I can see if I have any recommendations for you.  Thanks!

EC, I would agree that your margins look too thin. Are you factoring the closings costs and other options? Unless you have a really good buffer in your rehab budget and your ARV is very conservative. Another option is that you could get this under contract and wholesale the deal, but the investor you sell it too would need some good margins and may come to the same conclusion. It's obviously easy for us to 'judge' your deal from afar, so do some good due diligence and make sure this really is a good deal or if you should move on to the next one. Good luck!

I would second and third and recommend *not* investing in condos.   Find a way to get into a house or duplex. 

@Russell Fugitt Definitely consider your goals and I agree with @David M. on the general perspective to get a loan for 30 years and plan and budget to pay off in 15 to give you a buffer of the curveballs that may come your way.  I think the biggest thing is to make sure you have the reserves you need and the capital to expand to add other properties as your want to.  

Adam, sounds like you are looking for a hard money lender when you find the right deal. Partner with a broker that can help with that area