But another downside too, is that for line of credit, the banks can actually charge you a fee, a yearly maintenance fee, and then you can also get charged if you don’t pull off of your line of credit. Tony: So make sure you look at that too. And today is another Rookie Reply. From information about required forms and showing homes, our Smart Start Video Series features experienced REALTORS® sharing ��� That being said, HELOCs can come with variable interest rates and can be closed once up for renewal. This program is geared for beginners looking to get their first few deals. Make sure to send us more questions, more topics on Instagram and Facebook. Life as a rookie real estate professional is not easy, but REALTOR® Magazine is here to help. The next, you could go out and find private money. Ricky is asking about the pros and cons of using a cash out refinance vs. using a HELOC (home equity line of credit), especially since you can pay down a HELOC and use it over and over again.Many real estate investors take advantage of HELOCs since you can get them for your primary residence or a ��� So it’s not uncommon for me now to get an email or two every other week about, “Here’s this off market deal. I did do that before, and I’m kind of hesitant. Latest Episode ��� May 1, 2021 Rookie Podcast 74: Rookie Reply: Next Steps After Buying Your First Property. And they still want that commitment fee and everything else upfront. The proof is in the pudding. 11 min. Yeah. Ashley: Jennsey is asking: what���s the next step after your first property, as far as financing and steps to scale to a larger portfolio.. We’d love to hear your opinion on which one you prefer and maybe like a lot of things real estate, it depends. Because if I want to pay one property off, because I want to lose $500 in mortgage payments, I just pay that property off. Join the BiggerPockets community and get access to 12,000+ blog posts, a community forum and many other benefits. Here’s my personal financial statement.” Give these people who you want to partner with all of your information, be an open book and show them, “Here’s the deals that I’m looking at. This is Real Estate Rookie show number 72. Ever felt like you're close to breaking into real estate investing, but not quite getting anywhere?Today's guest, Tim Goutos, was right there with you. Rookie real estate agent sells multi-million dollar property in days ��� Yeah. So with the commercial side, this is kind of common with residential too. Real estate contract: A binding agreement between buyer and seller. As far as having that cash available, having it on hand, a lot of line of credits will actually give you a checkbook. No, I think hopefully we answered Gen Z’s question and he got a lot of value out of it, and I know there are a lot of folks in the Facebook group that were kind of thumbs up’ing that question. How do you scale?”. Well, thank you guys so much for joining us today. So Tony, which one did we pick to talk about today? I’m Ashley @wealthfromrentals and he’s Tony at @tonyjrobinson. If you post a question, you’re going to get tons of responses. We’ve talked about it a lot on the show as well, but I use that to project what my monthly expenses and income will be on each property. So if you’re doing a task, you can just start the video for Loom and it will record all the steps you’re doing and you can actually talk while you’re doing it too. Ashley: This week���s question comes from Ricky on the Real Estate Rookie Facebook Group. Tony: Join for free and get unlimited access, free digital downloads, and tools to analyze real estate. I guess one of the things to add because you just mentioned on the deal flow side, is that… and I’ve heard this from varying other people, like from multiple other people, is that when you get your first or second or third deal done kind of in the same market, you start to build a bit of a reputation for yourself in that market as well. What are the terms of the line of credit? That’s a situation where you don’t need cash reserves if your partner is bringing that to the table and that’s part of your agreement and you guys have that into a joint account. Yeah. You can always call us on the request line at 888 5 Rookie as well, may well pull some questions from there, but looking forward to getting more answers and questions just like this ��� So that happened to me where my cousin’s friend approached me and said, “I have these two properties with my sister. Yeah, so probably three years ago, I think I did my first line of credit and it was actually on my old primary residence. Yeah. You say maybe this time it’s a triplex instead of a duplex and just keep using that over and over and you’ll keep adding to it. I have to put the utilities in my name. We know they like to buy properties. So we’re pulling another question from the same comments. Resources. I know he’ll do it for me. Now you have the momentum and experience to go get more! Websites. And so with your HELOC, I like the HELOC for doing a portfolio loan, because you’re going to be able to get a larger HELOC. So Tony, let’s talk about the different ways of where they can get money. Many real estate investors take advantage of HELOCs since you can get them for your primary residence or a rental property. Yeah. And the way to go around this is to go to the commercial side of things. Thank you guys so much for joining us on this Rookie Reply and we’ll be back Wednesday with a new guest. Mantas is asking: How do I place properties under a newly acquired LLC?Before you place your properties in an LLC, you���ll need to ask yourself if you need an LLC in the first place. You can find ways to get money and it’s going to be a lot easier than if you’re going out looking for your first property. So for him, he was able to refinance his property, pay pretty much the same amount, but pull out a big chunk of cash. Frontline healthcare worker... Air Force Reservist... real estate investor!24-year-old Prescott Williams is a renaissance man committed to building real wealth through real estate while serving his community and his country. This is Real Estate Rookie show number 74. Ashley: Virtual Assistants, Roach Infestations, and Turnkey Companies with Maria Acosta. And then another downfall to it is that it’s hard to find lenders that will actually do the HELOC for a commercial investment property. Ashley, anything else to add on this one? So you guys go tell everybody and anybody about your real estate investing that you are looking for properties. Man, we hit all the good stuff on the financing side. And before you know it, your deal flow just kind of naturally increases. What do you get when you combine Dave Ramsey-style frugality with aggressive deal-finding tactics? I know Ashley buys properties. So if you’re looking to connect with us, that is the place. So I haven’t done one on my primary residence because I just want to have my home paid off free and clear. You have that experience. Every time you do something with financing, tenant management, or. Do you want to get to 1000 doors? Ask in the Real Estate Rookie Facebook group, “Hey, does anyone know any hard money lenders in the area?” Reach out and network and get referrals on hard money lenders, and then make sure you vet them. She just won Rookie of the Year with her brokerage Keller Williams after closing 17 transactions last year, at about $2.5 million each. I need to get insurance on the property. Welcome to the first Rookie Reply episode of the Rookie podcast! But a lot of times, especially on your primary residence, if you decide to do a HELOC, instead of using a cashout refinance, the bank won’t charge you any closing costs. So let us know. Because it is a little bit of everything, right? This week’s question comes from Ricky on the Real Estate Rookie Facebook Group. Do you prefer the HELOC? But if you’re like Tony and I, you’re pretty anxious and you’re not patient and you don’t want to sit and wait and save 20%, but let’s just give the full disclosure. I���ll try and be, do my best to be active in there and answer the short-term specific questions. Where if you get a 30-year fixed mortgage, you’re locked into that mortgage for 30 years. Tony: © 2004-2021 BiggerPockets, LLC. And then when it’s up for renewal, the bank could say, “You know what, we’re not going to do it anymore. Let us know. Between the both of us, we had enough available capital, enough W2 income to qualify for these mortgages, to cover the debt to income ratio, to afford the down payments, a lot of these short-term rentals so to furnish them. Listen to this episode from Real Estate Rookie on Spotify. We need topic ideas,” so we actually just recorded one that you guys probably listened to last week. Ashley: That’s a great point. How can I find deals,” but once you get a couple of deals out in the market, you make a name for yourself and deals kind of start finding you. So hopefully, that helps some of you guys, but I think that’s it. Every time you do something, write down how you’re doing that. Jennsey is asking: what’s the next step after your first property, as far as financing and steps to scale to a larger portfolio. Another great tool is Loom. And today we pulled a question from the Facebook group. The Real Estate Rookie Facebook group to search it out. You love walking away from that closing table with the big check. Now you have the momentum and experience to go get more! Ashley: If I’m ever wondering like, “Man, what do I pay in insurance on this property on a monthly basis?” I just log in to Stessa and I can check it there, so when you’ve got kind of a growing portfolio, it is kind of tricky sometimes to remember what goes where and what bill is what, so Stessa helps me kind of keep tabs on those things. Tony: The first thing that kind of comes to mind for me is that the team. So those are the best deals I feel like because you’re not competing with other people and they’re usually motivated sellers that want to be like, “Hey, let’s just sell this to somebody. I know during COVID, a lot of people were scared that their line of credits were going to be closed on them. You can bring someone in house. What do you guys prefer? So we actually posted on Facebook this morning and said, “Hey, we’re doing a rookie reply.