All Forum Posts by: Ash Hegde

Work on getting your credit score up, or find a partner who has good credit and can sign on loans. Even with DSCR and hard money products, credit matters (though documenting personal income does not).

The overall strategy and theory from the old podcasts still ring true, but they may not ring true in your market. This would have been the case back then as well. That being said, I would start from the end and go backwards as there are some episodes that talk about current events and markets that might be helpful. 

The idea is to get a property that will cash flow AFTER paying the debt, taxes, insurance, property management, vacancy, and maintenance. If the rent you charge can cover those expenses and have money left over for you, you are not operating in the red. You are cash flow positive. 

Having debt on a property is not necessarily being in the red either. If the value of your property is more than the debt, you are not in the red, you have equity. 

To your point though, real estate is not easy money. You have to find deals that cash flow. Major maintenance issues, long term vacancies, and tenants who don't pay can all put you in the red. In the long run, with good deals, you can do very well investing in real estate.   

You are unable to use conventional financing when you purchase with an LLC, which is likely what she was thinking of. There are alternatives like DSCR loans, seller finance, subject to, that allow you to acquire property with an LLC. I do agree that if you qualify for conventional financing, it is better to start with that (and additional insurance) as the rates and fees will be better.

Agree with Eliott, many will tiptoe around a situation that won't work because they don't want to lose you, and end up wasting your time. If you have a great profile - high income, great credit, etc - this won't affect you much at first but you will eventually get into deals that don't make sense and you want someone who will let you know. 

It would also be important to me that the person is available and takes your calls as you will likely get into a deal that requires a quick response at some point. 

If you are interested in continuing to invest, you would be better off selling everything than declaring bankruptcy. It will make financing difficult for many years. It should be your last resort. 

Welcome to the area and the forums!

Congrats Luis! If you start a W2 and can show 2 year history of employment or full time school you should be able to use your new salary. You will also be able to use 75% of market value rents on the other side of the duplex to help qualify. 

This is possible with experience, at least 3 rehabs completed in the past 3 years. With no experience it is likely going to be 80-85% of purchase and 100% of rehab, up to a limit of 70% of the after repair value.  

Welcome Tommy! Do you move around as a travel nurse or will South Florida be a permanent relocation?