All Forum Posts by: Bram Spiero

Concentrate on one thing and get good at it. Only then think about spreading out.

Yes. They, like loan officers are looking to identify loans that will get approved by someone. A 4 plex is residential but may be too exotic for large banks looking for deals that fit their templates.

Without leverage real estate is like any other investment vehicle. It spins off a dividend and may or may not appreciate.

With leverage, you have someone else pay for all of your expenses and your leverage.

Let's imagine you have $100,000.

If you buy a $100,000 property with 75% leverage that gives $100 in cashflow, that same property will give you $480 in cashflow if you buy it with cash.

So with $100,000 you can buy 1 property that will give you $480 cash flow per month and 30 years from now you hold $100,000 in real estate (I'm ignoring appreciation).

But if you leverage at 75%, you can buy 4 $100,000 properties that will give you $400 in cash flow per month and 30 years from now you hold $400,000 in real estate.

That's the choice.

@Romain Amrani, especially because you do not intend on managing properties in the future spending some time doing the actual work will give you tremendous perspective and allow you to call ******** earlier when your PM is trying to get one by you. If becoming a commercial agent is too competitive, go work for one, go intern for one, drive them around, photocopy paperwork for them etc. The advantage of your youth is your lack of obligations (maintain that for as long as you can by not buying **** you don't need), so now is the time you can afford to learn without have to be overly concerned with making a living.

Good Luck!

The more leverage the better (within reason). 

The lower monthly debt burden of a 30 year loan will give you more flexibility.

If you buy a property with 25% down which creates $200 cashflow, then if the market looses 50% of it's value for some catastrophic reason, you still have your cashflow and you can still pull out your original investment.

If the market appreciates by 50% you still have your cashflow and you can refinance and pull out all of your original money.

Good luck.

Either you get a checking account with a bunch of savings accounts associated with it or you manage an excell that knows how to divy up the lump sum in a single savings account. In any event get all money meant for expenses out of checking ASAP so that you don't think it's money you have.

That's typically something a good loan officer or broker would be able to tell you the exact in and out of, when they work for a small institution. They're not as scripted and will work on building a relationship with you rather than flashing their big bank's name at you.

As long as you occupy one of the units, a 2-4 plex is residential and eligible for FHA.

Sounds like the bank is treating it as an investment and not a primary residency.

I paid less than 1000 two years ago.

It only has to make sense to the ones you find.

don't go to the big banks. Talk to small local banks credit unions or to mortgage brokers.