All Forum Posts by: Timothy Hero

"Buy real estate and wait. Don't wait to buy real estate."

Everyone who waited 2 years when they could have bought a 4-unit for $600k, now is looking to spend $750k for the same property.

if you can finance, do it... going all cash in real estate rarely makes sense. my highest net worth clients know you achieve wealth by borrowing/leveraging money at a low rate.

I would say no. Some of my highest net worth clients focus mainly on appreciation. It's a little risky, because if you buy a property with barely/no cash flow and rely on appreciation and the market turns around, you now own a property that's generating nothing for a few years until the market rebounds.

I love appreciation. Cashing-out the equity every 5 or 6 years on a refinance is TAX FREE., while cash flow is taxed.

That's a decent difference between the two. I think we'll see better rates. I don't claim to have a crystal ball to give a time frame, but I think in the next 7 years we should experience a better market (at least to some degree), giving you a chance to refinance into lower rates if you wish.

No point in locking in a 30-year fixed when the rates aren't incredible to begin with.

I'd say the best place to go for education is a local meet up and shadow someone. Seriously... why take classes and spend a fortune learning from professors who more than likely don't have wealth in RE?

You can use the costs of classes on a down payment and the time in classes can be used finding properties.

All my high net worth RE investor clients don't use their degrees at all. RE is basic math and net working. Some don't even have degrees. I don't, and I've brokered 262 mortgages in my first 3 years.

It's extreme hit or miss. Have they gotten better with it? Sure, but they are still a mile off from time-to-time.

The neighborhood I previously lived at, was homes ranging in value from $525k - $650k. A few homes on the street, which were the same sq ft and built the same year as the $600k comps and same size lot, had Zestimates of $180k. Maybe it was an error, but it was a copy paste subdivision, and there were like 9 or 10 homes with that value.

Less than 10% of people with a mortgage will hold the property or note for the full 30 years. You'd be ignoring the pro's of real estate investing if you let a mortgage run for 30 years without refinancing the equity out every 5-10 years.

DSCR loans don't require a license in 46 states, so I was able to market nationwide. My first few closings were Florida deals (I currently live in VA).

I was a former realtor, who after 17 months never sold anything so I gave that up.

Not sure if my situation is relevant to your post, because I'm on the mortgage side. But I started the DSCR brokering stuff by accident, truthfully. I found it on Google, thought it was a scam but figured I'd try it anyways for a few months. Closed my first 2 deals 2 months in and then I became obsessed. 3 Full years later and I have 261 closings, totaling $61 million.

One deal at a time should always be the focus. Can't look too far ahead.

DSCR lenders have become iffy on STR financing. I know of one who actually closes on them, but expect a higher rate. I believe they raise rates around 50 bps for STR's. They go up to 75% LTV for cash-out and rural is fine for STRs.