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Posts:
54
From:
Florida
Registered:
5/18/07
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(4 of 4)
Re: usual first time questions.
Aug 27, 2007 4:05 PM
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DO NOT look at single family residences in terms of being an investment property - Richard Davis
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Posts:
2
From:
NE Florida
Registered:
8/16/07
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(3 of 4)
Re: usual first time questions.
Aug 27, 2007 1:49 PM
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You have answered alot of my questions. About financing, I meant I was thinking for the rentals to use like a 30 year fixed or maybe a 10 year arm, but I have been hearing about other types like "seller will carry financing" and "balloon mortgages", and I am sure there are other choices too. I was thinking that my biggest worry would be paying to much for a property, but now I am thinking at least for rental properties, the financing terms will be more important because I need it to have a positive cash flow.
Should I first get rentals or one or two rentals and then flipping (unless they doesn't sell timely, then rent), or just focus on rentals first or flipping first?
Should I try to find a Realtor for more help and how to begin, would they help me find financing too or should I look separately for it?
I have just found and am current reading "Investing In Real Estate 5th Edition" by McLean and Eldred. So far it seems really good in-depth for a novice, better than others I have seen.
Thanks for the help so far.
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Posts:
6
From:
Orlando, fl
Registered:
8/22/07
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(2 of 4)
Re: usual first time questions.
Aug 22, 2007 3:30 AM
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Wow, that's alot of questions. Anyhow, I have been an agent for about 4 yrs and an investor for about 2. I spent alot of money on seminars by the GURUs before ever become involved myself. I would say that the first step is to get some training. In my opinion Lou Brown is the absolute best in the industry. He teaches you step by step in simple English and includes forms and contracts. He's not cheap but he's worth it.
I will try to answer your questions to the best of my ability, but experience is probably the best teacher.
1.You don't need a license to buy, sell, lease or trade any property that you have an ownership interest in. However, only a Realtor can enter your property for sale into the MLS (Multiple Listing Service) which is how a majority of homes are sold. There are other methods and resources for selling property, but be prepared to hold properties as the market is pretty slow right now.
2. As for financing, you could go the traditional route, but after a few properties, you will be turned down unless you have a large "traditional" income. The easy answer is Hard Money, but its short term and expensive. It typically has fewer requirements than conventional loans.
3. For repairs, if you do not have experience in rehabbing, get a General Contractor who has references that you can check for extensive projects. Make sure the GC is licensed and insured.
If the project requires only cosmetic work like flooring, paint , cabinets, etc..then skip the GC, they cost too much anyway. You hire and schedule the subcontractors yourself. That is what most GCs do for you for a fee anyway. Once again, be sure they are licensed if required for their trade and insured.
It is an excellent idea to look into a quadriplex or triplex. The rental income could possible cover your entire mortgage, freeing up your income for future deals.
For this property look into www.acornhousing.org or www.naca.com for financing. They are traditional lending programs for first time buyers/people with lower income or not so great credit,. They will finance you at a low interest rate fixed for 30 yrs, and require little down payment, low closing costs, and no PMI, BUT YOU HAVE TO LIVE IN THE PROPERTY. Last, every county and some cities have a first time home buyer down payment assistance program that will provide the downpayment sometimes up to $40,000 depending on area and income. I hope that this helps you. Let me know if I can help you further.
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Posts:
2
From:
NE Florida
Registered:
8/16/07
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(1 of 4)
usual first time questions.
Aug 16, 2007 2:18 PM
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I am probably going to ask the same that have been asked many times already. I have been watching the various flipping shows for several years and I am thinking I would like to try it.
Here are some usual questions: It sounds good (including the money), but are there any downsides I should know about before hand, should I do it in my own name or a business, do I need a Real Estate or another type of license .
How about financing, it is sounding like in the last couple of weeks that the lenders are even afraid to loan to the prime borrowers, so how would that effect me. Plus with the "real estate bust" going on, doesn't sound easy either.
I don't have any actual experience in business or construction, I have been watching the various home improvement shows and will check about clinics at the home improvement stores.
My plan is to first buy some multi-units like quad-plex with owner occupancy, live in one rent the others out for a steady income, then start buying for rehabbing then probably renting those out. How many properties would be necessary to have a stable income to do this more full time?
I live in North East Florida (near Jacksonville, Gainesville, St. Augustine), Not the dreaded Miami/South Florida. Any help would be great.
PS: I don't have my own computer (have to use the library) so I won't check back in until next week, why I also can't check all the old posts
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