All Forum Posts by: Frankie Woods

Though I don't live in California, I am an out-of-state investor investing in St. Louis.  I lived in Lancaster, CA for 3 years as well so I understand the LA dynamics.

1) I've built relationships with local banks in both cities and have used traditional (i.e., freddie / fannie mac loans) for most of my properties thus far.  I just recently reached my 10 loan limit, and now will transition to local commercial / portfolio lenders in those areas.  I've used F&B Financial Group.  They have both traditional and commercial lending arms.  Longhorn is a Hard Money Lender that I've used.  My rate was 14% with 2 points.  They will lend on 100% of the purchase price plus 100% of the rehab on a draw schedule.

2) I just completed my first refinance out of the HML from Longhorn using F&B Financial Group. They then sold the loan to Wells Fargo.

3) The general rule of thumb is to have your LLCs located in the state you are investing in. I have one in St. Louis and one in New Mexico which are currently my primary investing locations.

4) There was no REIA I was aware of when I lived in Lancaster.

I hope this helps.  Happy Hunting!

@Account Closed are two investor friendly RE agents that have a lot of knowledge and experience in St. Louis.  North City is a very tough market, but there are a lot of investors doing very well in North County.  

Benton Park, Tower Grove East/South, and Fox Park are all quite hot right now in South City.  I would love to get some property in St. Charles.

This is a great thread, thanks for starting it!

I think you've essentially answered your own question.  I'm  in a similar situation, though not making quite as much as you.  I, too, believe that I will have more income in retirement with my current investing strategy.  Given that it is likely that taxes will raise in the future, it still makes sense to do Roth Conversion ladders.  I am going to convert enough each year so that that "income" I produce from the conversion keeps me in my current tax bracket.  

Thanks for sharing!  Continous learning is what it's all about!  Keep in mind that as a married couple, you can hold a total of 20 properties in your name (10 in yours, 10 in your husbands).  The rates and terms on conventional mortgages tend to be better which is why some BP members advocate maxing those before moving onto commericial loans.  In any case, congratulations on this creative strategy.  

When buying a primary residence, I alway ensure it is in an excellent location with the potential for appreciation. I also ensure that the rent (after I move) will cover at least the PITI. When I'm in a SFR, I house hack by renting out the additional rooms (albeit I'm single). When I'm in the MFR, I house hack by renting out the other apartments and still rent out my rooms. I try to do this once a year :). Since I ensure that the rent will cover my mortgage, I'm comfortable with buying "nicer" places with this strategy. I focus on things like the 70% or 1% on my traditional rentals. It's a way for me to diversify into Class A, B, and C properties. Cheers!

I partnered with a friend of mine last year on a primary residence. He used his VA loan which required zero down, and I provided him with cash. The loan and title are currently in his name, and we signed a contract (non-notorized) to be 50-50 partners. Does anyone have experience with this type of deal. What is the best way to protect myself in this situation. I do not feel that is likely that things will sour in the future, but I don't have a crystal ball. Please help!

Thanks for sharing this.  I'm interested in notes, but this seems to be more of a headache then regular, old-fashioned RE buy and holds / flips IMO.

@Arianne L. Congrats!  This is so awesome and is exactly where I want to be doing ASAP.  I'm assuming you got the 25% downpayment for the 24-unit thru your flipping / wholesaling business?

Thanks for sharing this inspiring success story!

I'm am going to use this strategy for down payments and debt consolidation.