All Forum Posts by: Todd Pultz

@Colin Reid @Javen Bowman, Collin has a very valid point in regards to what you need and you can not jump into real estate without a couple of them. It is absolutely possible to buy properties with None of your own money. People in here telling you it’s impossible simply do not really understand what that is saying. When you hear this term being used by those trying to sell you stuff, it does not mean that you don’t need money, it simply means you do not need your own money, lol!

And as one said a few posts ago, this typically does not involve a bank unless you are using a VA loan. You need to immerse yourself with real estate and learn absolutely everything you can for FREE! You need to start working on the network and meeting people through platforms like this. Lastly, you need to work your **s off and pound the streets, knock on doors and find deals to bring to investors that they would not have found! If you are honest, transparent, relentless and work your tail off, you can do this.

@Storm S. I'm not exactly sure what advice your giving him here? I'm open ears to "buying REIT's" with none of your own money......! I would assume he may not even know what a REIT is if he's brand new, which by the way is Real Estate Investment Trust (REIT). Looking forward to hearing about this strategy @Storm S.

@Gerald Jordan just one to think about with LLC's and using them. You can leverage credit lines through your LLC, the sooner you start using your LLC the more opportunities you will have due to seasoning.

Also, traditional banks will want to see the LLC active for 2 years in a lot of cases to handle some loans. Not always, but often.

Additionally, a lot of HML's will give you better rates based on the number of properties exited successfully. They will also want to find through an LLC, so it makes sense to just start using it.

I did not at the beginning, but I wished I would have.

One other thing to think about, is you can make people researching a property have a much harder time tracking you down for various reasons. This becomes important when you grow bigger and have a large portfolio. Very long topic, but you have to think about insulating yourself and family and not leaving a long paper trail behind. There are many experts that will talk to this and Whitney Sewell has a guest on a few weeks ago talk about the entire topic.

Good luck

@Aaron Cieply that is one method. However on flips there are a lot of hard money lenders out there. They will find your deal and then fund the rehab costs at 100%. Usually the rate on the loan is cheaper than using the credit card rates.

However, if your organized, I like to use my Lowes my card. Depending on timing if you purchase X $’s, they will give you six months same as cash, so if you can complete the flip in less than that, you can pay the lowes card before you pay any interest. You can also do this with credit cards if they offer 0% financing for new card holders.

Usually, HML's require at least 640-660 credit and enough reserves to cover a certain percentage of your loan payments

Just a couple thoughts

@David M. @Linus Leung, Linus it does not have to be inhabitable at all. SFH's have tighter margins and your cash flow after refinance will typically be lower than a multi-family. Generally speaking, the larger multi-family the larger opportunity to brrrr effectively and cash flow better.

Additionally, with multi-family, you can find plenty of cash flowing properties that have lower value due to low rents and deferred maintenance.

Many hard money lenders will also finance the rehab cost’s for you at 100%. Most will place into an escrow account and reimburse you on draws as you complete work.

Here is a recent example on a property we did with this method; we bought a 21 unit apartment building for 295k. We used a HML for the purchase and rehab costs, which were 30k. We then had a private money investor lend us the gap money for cash to close of 32k unsecured. So we had 0 money out of pocket. The rents at acquisition were more than enough to pay both loans monthly. We bought this property in February this year. After acquisition, we immediately started the rehab we needed, raised rents and effectively managed the property. We will close our refinance on this property next week and will be almost exactly 6 months after acquisition. The property appraised at 625k, and our lender will give us 70% LTV, so we will pay off the existing 1st of $295k, we will pay off the unsecured 32k and we will put roughly 110k into our bank account and use for another acquisition. The refinance will be on a fully amortized 30 year.

Hope that helps and good luck.

@Lisa Geiger I’m reading this and feel for you that your dealing with this. HOWEVER, you need to stand your ground. You had an exterminator come out which is more than what I would have done and you put them in a hotel which is more than what I would have done. Bees, wasps and other insects are simply part of life and unless they can demonstrate a neglect of the building on your part that created this problem, there is no habitability issue. Stand your ground

I recently had a tenant attempt the same thing over flies in her apartment. and I had one try it because a mouse was in her unit. First one, I gave some fly traps and coached her on keeping her door shut and trash away from the unit. Second one we put down some nice traps and bait and coached on keeping her dogs food in closed container instead of under the sink open. Nothing was prorated, nobody was put in hotels. The one with flies, tried to not pay rent. She was served a 3-day notice and she paid her rent.

Don’t get suckered because they think they can bully you! Enough is enough

Good luck to you.

@Joseph Agudelo welcome to bigger pockets! Immerse yourself in podcasts and webinars, but always remember that no matter how easy they make it sound there are real risks in real estate. Whitney Sewell has a great podcast called the daily syndication show.

Good luck buddy

@Piku Nanda very sorry to hear you had this experience. I do want to touch on your comment, “the paperwork he was making us sign”. Nobody can make you sign anything and you have to control every situation in the future no matter what!

Now, contact your attorney and get legal advice, then file a complaint with Attorney General. Immediately send written communication to all contacts you have and can find with their company that you are canceling the contract immediately. Put a stop payment on the check.

I wish you the best with situation, but please please control situations in the future. Nobody can make you sign anything and remember that research is key along with doing a ton of due diligence prior to something like this.

@Brennan Doherty so glad to see you thinking through your options before jumping in! That’s step one. Don’t feel like you have to house hack to get started and be successful although there are some huge advantages to it.

My only suggestion is like someone else said, which is to go at least 4 units. You certainly reduce some risk with 4 units if you buy right. I see to many start with a SFH or Duplex and stress if they have a vacancy.

I started by leveraging the power of owner financing. You might hear from some on here that owner finance is dead, but it certainly is not. If you can get started with that, you can save your Loans for the next few properties. It takes a little more work, but the upside is significant! Doors 5-50 for me were all owner financed and that allowed me some really incredible options. I still use owner finance as a path to get into properties today very successfully!

Best of luck to you buddy and reach out if I can ever be of assistance

@Mark Cruse pretty common Mark, not sure why it’s confusing so many. No need to explain yourself.