“I would stick to a conventional loan… FHA loans… have a lot of restrictions and red tape, and it sounds great on paper until you get into it.”
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Said on The Ramsey Show
BiggerPockets Real Estate Podcast · From a $55K Rental to BiggerPockets CEO and Financial Freedom
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Advised Eric to house-hack: live in one unit of a multi-unit property, rent the others, use an FHA loan, then refinance to a conventional loan to repeat the process
“I would stick to a conventional loan… FHA loans… have a lot of restrictions and red tape, and it sounds great on paper until you get into it.”
“We use $200,000 to pay down the home loan… then we take out a $200,000 loan and use that to invest… that $200,000 loan becomes tax deductible”
“If there's 200-300 basis points made on one loan, 3% and the loan officer is obligated to get 2%, I give the loan officer 2%. I take the other 1% and put that into a NEXA ledger that they can use to grow their team.”
“Who better to retain a loan than a loan officer who did the loan? ... we pay you this amount of money to do that... they get the data because the data tells us they're looking at other homes.”
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