All Forum Posts by: Tyler Reed

Hi Kristen, 

Your strategy will ultimately depend on your needs and less on the property in this instance. With low starting capital, flipping will almost certainly be the best move to give you some cushion and propel you forward in your investing career. Getting crystal clear on your own situation and your plan will help make these decisions easier. Look for hard money lenders that are willing to spend some time with you up front to help you understand your numbers and your plan. Good luck!

Hi Casey, 

It is good to see that you have a particular vision for how you want the financing to go for your second rental property. It can be worth taking the time to have some conversations with hard money lenders so you know the ins and outs of how they work.

For example, you have to be careful with having a second position if you are borrowing rehab capital. That money is escrowed and before you receive a draw, they check for any additional liens on the property. If they find a second position, you will have to pay that off before you can access your next draw. It will be easier to finance with one lender, whether that is through private or hard money. 

Lots of hard money lenders like us offer free initial discovery calls where you can get a lot of good information. Hope that helps!

Hey Sean, 

While it is challenging getting things going, I hope you give yourself credit for jumping in and taking action. That is how you learn, and most people get stuck before taking any action. So nice job on that. 

Have you considered any cash generating actions in real estate to set yourself up better for your next deal? Wholesaling and flipping are important tools for starting your own portfolio. Utilizing hard money is also a good way to maximize the cash you do have for your next property. I am in Orlando as well, would love for you to stop by our office or meet up for coffee and help you plan out your next steps! Keep going forward.

Hi Priscilla, 

Depending on the investor, hard money can be a benefit even on your first investment deal. Companies like ours spend time before the deal happens to make sure you understand your numbers and have the right strategy. For example, we can help you make sure your bridge loan is set up to properly refinance into a DSCR without having to bring more cash to the table at closing. It all depends on your priorities, but it may be worth paying a moderately higher cost for the money if it comes with experienced support. Best of luck to you!

Hey Carl, 

Congrats on getting started, that is the biggest hurdle. I would recommend checking out local meetups like REIAs and try to find some wholesalers. Check their numbers, and when you find someone bringing you deals that are priced accurately then take action! "Action cures fear" is my favorite line from The Magic of Thinking Big, and that should be why you are in real estate! Think big, and let us know what help you need. 

Hi Jaime, 

Your thinking is in the right place, and the answer is do it all. We coach people to "date the rate, marry the property." You can refinance properties later. As mentioned above, you can also sell properties later on as well. Tampa is about to be flooded with rehabbed properties by owners who do not want the stress of another hurricane. There were no interest rate changes forecasted for this year, until the news of the past week, and now there are three potentially on the horizon. If money becomes cheaper and homes become cheaper, time to start adding to your portfolio. You will learn what is right for you along the way, but action cures fear. Be in action my friend. 

@Dustin Pavlik

Great move looking into St. Pete for an STR—it's a strong market, but working with a broker or a consultative lender who understands the nuances of short-term rental underwriting is key. STR financing requirements can vary greatly between lenders, so having someone proficient in these differences will make the process much smoother and help you secure the best terms. I'd also recommend connecting with a realtor experienced in STR investments who knows the local regulations and high-performing areas. It is definitely one of the best places to spend time on vacation, best of luck finding your spot.

Quote from @Devan S.:

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $532,500
Cash invested: $106,500

I just bought a duplex on 3rd Ave on the Columbus side of Grandview and am planning on living in one side and renting out the other.

 Congrats on getting the deal done, Devan! Looks like a lot of your own capital into the deal, but you learn more from being in the game. Way to take action. 

Not all hard money lenders are created equal! But they can be massively impactful, especially as a guide rail for newer investors who have less experience. Worth using, but also worth dedicating some time to qualify the right one to work with (I work with a Bigger Pockets preferred lender, so I am not impartial!)

 Hi Joshua, the amount of down payment also changes with the cost of the property, so starting with a less expensive property may be smart (for multiple reasons). You can also do a wholesale deal or two to create the cushion you need for your first flip. Try finding a lender that has a consultative approach and will walk through your first deal with you and really paint the full picture so you know exactly what you need. Make it happen!