All Forum Posts by: Frankie Woods

Great thread as always @Mike Dymski.  I just heard a NPR podcast today stating that most Americans are still overly cautious due to the GFC.  The indicators given were a historically high amount of equity in primary residences, employers using bonuses to reward employees vs. salary increases, and college students choosing STEM degrees vs. liberal arts degrees.  The equity indicator was particularly interesting to me.

Given the ecomony is doing so well, it's curious to see the risk-adverse indicators above.  Though my gut tells me that we are approaching phase 3 / 4 of the market cycle, there is no glass ball.  I think your advice to continue to invest in a careful manner is the most prudent methodology going forward.  Avoid over-leveraging and ensure decent cash-flow is the advice I hear over and over on BiggerPockets.  

I will say that, when you start to see smart investors changinging their investing philosphy to make deals work, it gives me pause.  Nonetheless, this may just be a necessary correction of course given the black swan event proceeding the GFC causing unrealistic unexpections.  Again, as you have stated, the key to this game is deal flow.  

Personally, I will continue to invest and will stick to good / great locations that provide properties that cash-flow.  

Thanks again for the post!  Outstanding stuff!

can yall share your recs to me as well?!  

stupid question, but why does it have to be non recourse.  I feel like you are limiting yourself significantly 

Primary financing or get creative.  If you can't do it as a primary, start calling local banks.  You have the knowledge, convince a bank that they need your business.  

@Kai Van Leuven concur with both your observations.  Comparing how tech has influenced the financial markets and the buzz words have finally made their way into the RE space.  I'm excited about what's happening and, as a coding guy, want to fill some of the gaps myself.  So much opportunity!  I think people are bringing  applications to this market, but there is still so much to be done.

Interesting article from the New York Times discussing the venture capital firms' interest in real estate.  It seems like the industry is going to change drastically over the next decade.  Exciting times for those that ride the wave.  Though the statement from one of the firms suggesting flippers had an easier go during the GFC than long term property holders is laughable to me.

https://www.nytimes.com/2018/09/27/technology/next-techs-agenda-real-estate-opendoor.html

Is this a primary? If so, most banks will go to 85-95% LTV; however, most will have some type of cap. If it's an investment property, there are only a few national / regional banks that will provide HELOCS (e.g., PENFEN, Navy Federal), the LTV is generally 65 - 80%, and the caps will be lower. For instance, I just got approved by Navy Fed on a rental at a max of $100k even though I have over 150k in equity. It just depends on the bank. You may have more luck shopping around smaller, local banks.

Copy.  Good to know, thanks for sharing.

Can you find private money or a co-signer / partner?  You can pay the partner in equity or some kind of interest on their investment.

Yes. I would get the HELOC on your primary now as it is more difficult to get them on rental properties. Then you can use the HELOC for your down payment on your new primary residence.