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On this episode of the Cash Flow Guys Podcast Tyler discusses many of the common misconceptions that new (and some experienced) investors get caught up in.
Easy Loan Program Scam:
- Predatory lenders and terms (not “hard money”)
- Application fees or upfront fees are trash
- Takeaway: Lenders should be competing for your business, they are not doing you a favor..they are making an investment.
- Go see a lender (Mortgage Broker) and get qualified, if they say no get into a credit repair arrangement.
- Understand the programs available, Fannie Mae, USDA, VA if applicable…talk to small local banks that make local underwriting decisions.
- Educate everyone you know about what you are doing, many will want to come along for the ride..too scared to go at it alone…
Buy, Fix, Occupy, Repeat:
- FHA allows a 3.5% down payment, seller can pay up to 6% of the purchase price towards closing costs at current.
- Save every nickel, buy a place for as little as $3500 out of pocket and live there for one year. When you move out it cashflows $200 per door or $400 for the property. Save every penny of that for one year = $4800, now go buy another.
- In 10 years you will have 20 doors (10 properties) and $48,000 or more passive income taxed at the LOWEST rate allowed by law (if at all).