All Forum Posts by: Tim Matthews

Hello, all. I am still preparing to buy my first rental properties. For my properties, what types of protection are best to protect myself and my assets? Do I need to have the properties under an LLC and what are the benefits of having an LLC? What are the pros and cons of going the LLC route versus having insurance policies that protect my property?

Hello, all.

I have been pondering many ways on funding a purchase when I get ready to begin buying rental properties next year in the Chicago area. One thing I can't seem to find an answer for (because it may depend on the lender) is how payments work on a hard money loan. As the borrower, what I mainly want to know is if I have to make monthly payments on the loan. How does repayment work on the loan? 

I would like to know as well about REI meetups in the Chicago area as well.

I'm a beginner like you, but I have been attending Real Estate Investment Group meetups virtually in my area. That is a great place to meet other investors, lenders, and possibly even a mentor. I am looking for a mentor as well, so hopefully be both find what we need in that department. 

Regarding financing, I heard a story of people finding lenders to fund the 20% down payment, then they eventually get the mortgage with that money. I personally cringe at the thought of this as a beginner because it seems like I will have to make sure all my projected numbers allow me to pay back BOTH lenders. However, people seem to do this. There are some other creative way to find the money, such as asking friends, finding co-investors, etc., which are all things I heard in one form or another through BiggerPockets.

If you are seeking expertise for these topics or looking to meet experienced investors in the locations out of state that you mentioned, then definitely attending a Real Estate Investment Group in those areas would be ideal, and probably more possible since a lot of these meetups are happening online and are often free to join through Zoom.

Very nice! This is what I hope to do one day in the Chicago area! Your success story brings me much inspiration!

Thank you all for the responses. I guess having multiple $100K+ mortgages is something I will eventually get used to.

Apologies, I misspoke earlier. I wish I could go back and correct it. My question is actually: are BRRRR borrowers cool with paying 10 different loans over the course of 20 or 30 years? That seems like a lot of accountability, especially if each loan was over $100,000.

Hello, all.

I am new to the world of real estate. I am trying to understand how things work in this field, especially with the BRRRR strategy, as it does seem like it will work beautifully.

Correct me if I'm wrong, but doesn't the BRRRR strategy mean that the Real Estate Lender will have lots of mortgages? For example, if I BRRRR 10 single family homes, doesn't that mean 10 refinances, which are 10 mortgages?

Am I right about that? If so, doesn't it seem irresponsible to be accountable for 10 different loans? And if these 10 loans are 20-or 30-year mortgages, is every BRRRR lender cool with paying 10 different loans over the course of 20 or 30 years? Perhaps I am very protective and don't like owing people money, especially 10 different people.