All Forum Posts by: Tony Le Claire

Hi Daniel, It’s great that you’re getting started in real estate investing! As a lender, the three main factors we look for are as follows: Credit: Typically you’ll find most lenders require a minimum qualifying score of 620. The higher your score goes above that, typically the better your pricing and options will become. Income: Lenders will also consider your debt-to-income (DTI) ratio as a factor for approving your application. Generally speaking, the DTI limit is going to be 50%. DTI is calculated by comparing what you currently earn to what your monthly recurring expenses are, plus your future expected housing payment. Assets: This will be liquid assets such as checking/savings, 401k, IRA’s, stocks, etc. These funds will go toward your down payment and any associated closing costs. I hope this helps!

Congrats on completing the renovations on your flip! That is definitely a great profit margin at that price point. What will you change on your next flip to decrease the renovation timeframe?

I’m for the buy used for cash option. The vehicle I own now was purchased used with financing through my bank. My bank at the time was offering me 0.5% interest on a 72 month term, which at that point made the most sense for me because it was so low, and I didn’t have as much available cash as I do currently. However, my next vehicle purchases going forward will all be private party used and for cash.

@Anton Ivanov Congratulations on your success! Thank you for your service in the Navy and thanks for sharing your story and what helped lead you to success. I’m very interested in discussing (Via PM if you’d prefer) what lead you toward pursuing software engineering? I’m currently learning the basics (HTML/ CSS/ Etc) and would love to find out more about how you transitioned from the Navy into a career in software development. Your goals are outstanding and I’m sure many would agree that your 70% savings rule is a great accomplishment in itself! Thank you again for contributing to BP by sharing your story! Thanks, Tony

If I acquired 20 million today, here’s realistically how I see things playing out. Option A: I’d use roughly 10 million for commercial properties, such as developing new apartment communities. I’d take roughly five million and diversify it in the stock market into funds with high yielding and reliable dividend returns. I’d take another couple million and create a large charity organization of my choosing, probably military affiliated (Toys for Tots type). The rest of the money I’d spread around to help out close family that I’m confident would put good use to it and I’d keep about 500k for myself to hold me over for the year. ;-) Option B: “Donate” 10 million to a divorce not of my choosing. Be so depressed from the divorce that I invest in “Up and coming” cryptocurrencies at the highest point of the bubble. Profit.

Hi Mindy, Great question! I’m a local lender in the Phoenix, AZ area and figured I’d share my experiences. Similar to how my realtors get their referrals, I’ve found the best referral source is from past agents or clients I’ve already helped. Word of mouth definitely helps a lot, because when you create a great experience for one person, hopefully they share their experiences with those close to them. More specifically, I’ve met my Realtors through local Realtor associations. These are not “MeetUp” groups, but associations created under the National Association of Realtors umbrella. Additionally, I’ve also connected with my Realtors by attending home tours, open houses, and networking functions. The old fashioned face-to-face conversation is definitely a great way to get to know not only your local lenders, but the Loan Officer you’d likely be working with. Hope this helps!

Hi Mike, There is no issue with refinancing four properties at once. I would definitely suggest shopping lenders in your area and determine the lender that offers the best deal overall. Then, complete your refinances with the lender that has the best deal. You’ll be happy, they’ll be happy for funding four loans, and everyone wins.

Hi Greg,

My apologies as well for the delay! 20k for 6 months is roughly $19.23 per hour which is definitely good for a base pay in this field. Did the company mention if it was a draw income or if it is essentially a "freebie"? Draw income basically means they pay you the base but when you receive commission you pay back the income received until you are eventually straight commission. Freebie would of course mean they are paying you the base salary with no expectation of pay back down the road.

Thanks and happy holidays!

Tony

Hi Tookie, Thanks for sharing your story. Regarding your question about refinancing and cashing out the equity in the home, the Fannie Mae guideline states: “The property must have been purchased (or acquired) by the borrower at least six months prior to the disbursement date of the new mortgage loan except for the following...” The exemptions to this rule being if the property was purchased with all cash and qualified under the delayed financing rule, or if the borrower acquired the property through some form of inheritance (Divorce, etc). With all that being said, most lenders have an overlay of twelve months for refinancing. You had mentioned you’ve attained seller financing, congratulations on that! I️ wish you the best going forward with your investments. For reference, here is the Fannie Mae cash-out refi page I️ pulled the info from: https://www.fanniemae.com/content/guide/selling/b2/1.2/03.html Take care, Tony

Hi Greg,

How much is the base pay for the six months? 

Two months of hands on training while you study for your SAFE exam is sufficient to get acquainted with your community, realtors, etc. so long as you are assertive during that time.

1.3% or 130 basis points as it’s referred to as is definitely good, some brokers might pay more but will make you pay for your own marketing, pay for your leads, pay for your credit reports, etc. Make sure to find out what costs they are covering as well.