All Forum Posts by: Paul Santos

@Matt Hixon Where you buy and what you can tolerate will dictate your choices. Not sure if you mean you have up to $200,000 as a down payment or total price for a multi. Anything multi that is priced right is being scooped quick. Market is strong for good investment multi's and even stronger for investors buying multi's in and mourned Phoenix metro. House hacking gives you intimate contact with your neighbors and depending on where you buy it will again boil down to what you can tolerate even if it is only for one year. 

@Evan Bell I am not an expert in business plans, but it looks like you created a good framework to follow. The U.S. Small Business Administration (SBA) has a "Write Your Business Plan" page dedicated to writing a business plans. You could check out the website and compare your draft business plan to the information provided by the SBA and it may help you fine-tune your plan. 

"A business plan is an essential roadmap for business success. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues." - SBA  

@Evan Bell sounds like were heard down the right path, slowly building your financial foundation. The business plan approach to raising some capital sounds good. Stay on track and continue to build from each process. Keep us posted.... 

@Brian Burke thank you!

This is great being able to follow a commercial deal from inception to final closing and getting the details in between. 

Brian mentions a "lease audit" - could someone give me a synopsis of what a lease audit consists of?

Hi Matt,

House hacking in your situation would probably suit you best. You can go it alone with the money you have saved. Look at FHA financing and/or Wells Fargo has a 3% down program, take advantage of the low rates, but shop around as well and find he best loan program that meets your needs. I strongly believe its best to get in as soon as possible, and let your real estate start working for you. Rental market is strong. Low money down gets you into a minimum 3-4 bedroom 2-3 bath SFH. Rent the other bedrooms and it pays most or all of your mortgage and save, save, save, for that whole year or more, and your ready to buy again... Good luck on your endeavors!

@Shiloh Lundahl  Welcome to BP! Looks like you are well into real estate investing already, but here are a few suggestions to further your REI education and BP experience....

1. BIGGERPOCKETS - but you know this already because you are here, take advantage of all the free information BP offers, from books, podcasts, forums, local events, webinars and networking, just to name a few.

2. READ - following the above you will quickly come to realize that there are a good 10-20 must read books out there dealing in various real estate subjects. Reading is the most cost-effective way to educate yourself and get all your basics in place. BP has published some excellent books in this arena.

3. PODCASTS - take of advantage of the BP podcast, but also the numerous other podcasts out there that will help you formulate plan and help get your first deal.

Congrats on all your endeavors and Enjoy!

The amount that goes into escrow will fluctuate on a yearly basis. Banks review your escrow expenses yearly (usually anniversary date of loan inception) and adjust the amount to cover escrow expenses. Your escrow probably pays property tax and property insurance. Property taxes can increase or decrease, and so will your escrow amount to compensate for the difference. Your property insurance can also increase or decrease thus requiring an adjustment in escrow as well. Banks will cover you by paying shortages (you don't want to miss a tax or insurance payment) and at the yearly escrow audit the bank may increase/decrease your escrow amount and tack on an additional amount to payoff the shortage from previous year. Think of the bank paying your shortage as a free loan. What you are experiencing is nothing unusual and comes with having a mortgage.  

@Greg Harriman Although I don't have any personal or professional experience with this bank, but they offer portfolio loans according to their website. 

National Bank of Arizona

Try also: MidFirst Bank & 1st Bank in Arizona

@Julie Belton Welcome to BP! Here are some suggestions further your REI education....

1. BIGGERPOCKETS - but you know this already because you are here, take advantage of all the free information BP offers, from books, podcasts, forums, local events, webinars and networking, just to name a few.

2. READ - following the above you will quickly come to realize that there are a good 10-20 must read books out there dealing in various real estate subjects. Reading is the most cost-effective way to educate yourself and get all your basics in place. BP has published some excellent books in this arena.

3. PODCASTS - take of advantage of the BP podcast, but also the numerous other podcasts out there that will help you formulate plan and help get your first deal.

Enjoy and the best of luck you!