Breaking into the world of real estate requires initial capital to begin your investment journey, creating a barrier for many people. But what if there was a way to get around the capital you need to get started? In today’s episode, we speak to Matt Porcaro, creator of The 203k Way, a community dedicated to helping you leverage the 203k loan in order to take your first step to becoming a real estate investor. Matt spent years trying to enter the real estate market, and through trial and error, he heard about a government-backed renovation loan that catapulted him into real estate investment success: the 203k loan! In our conversation, Matt unpacks the intricacies of the loan and how it can be leveraged by first-time buyers or investors. We learn how Matt found out about the loan scheme, the various requirements to qualify for the loan, and the various ways it can be leveraged. We also find out how to avoid defaulting on the loan, why a Limited Liability Company is not a good option for first-time buyers, and the power of networking, plus much more. Tune in to hear about The 203k Way and begin your real estate investment journey today!
Key Points From This Episode:
- A brief background on Matt and how he became aware of the 203k loan.
- The value of networking to become successful in real estate.
- Matt explains who the 203k loan was designed for.
- An outline about the 203k loan and what it aims to achieve.
- Matt’s first buy leveraging the 203k loan.
- Whether there are any restrictions on the 203k loan.
- Find out if the 203k loan can be used to finance residential development.
- The different ways the loan can be applied.
- How long the owner has to occupy a property to qualify for the 203k loan.
- What not to do in order to avoid defaulting on the loan.
- Why forming a limited liability company (LLC) is not recommended.
- Matt shares details from his real estate investment strategy.
- What attributes or traits make for an ideal investor or first-time buyer.
- How being a 203k investor has impacted Matt’s life outside of real estate.
Links Mentioned in Today’s Episode:
Real Estate Investment Association
Passive Income Through Multifamily Real Estate Facebook Group
