All Forum Posts by: Steve Vaughan

My area blows.  SFHs not in the hood are $175k-$200K, rents are $1200-$1400.  Even multi's are hardly worth looking at anymore.  Time to sell and move to MI!

Ok ok, I figured as much. The credit cards are much more likely to sue for default than a mortgage, especially an FHA loan. However, after several months of non-payment the cc's will settle form less. They are also not providing your shelter. Pay for your food, utilities, transportation, then shelter. In that order. Credit cards are way down the list and should be paid last. Sorry your are facing this.

Option C.  Someone that doesn't have $200k in debt!

Why the heck is the 1/8 owner getting the rent?  Have the 1/2 owner direct the tenant to pay rent to them immediately.  At least while the legals are being worked out, the rents can help cover the operating costs/taxes.  

Whatever, @Michele Fischer lol.   Go Cougs!!

I would pay cash for a short-term investment for sure.  Fixing and flipping? All day.  Borrowing costs and hassle are too high.  The only reason to finance if you don't need to is to maximize capital, like @Darrell Shepherd points out.  If you pay all cash you can always re-finance later, right?  Debt keeps some folks up at night.  I have a paid for rental house and use debt minimally, now that I'm more seasoned.  Congrats if paying cash is even an option for you.  That's outstanding!

I like to do as @Guy Gimenez suggests, only I use a letter of intent. I submit it to the listing agent, like normal.  Example may be- a) cash with quick close,  b) partial down,  c) very little down, increasing the price as I go.  Broad stroke/idea generating scenarios.  The seller often chooses one.  The listing agent will call and say, "they like option b."  Because I don't use a buyers agent, the listing agent has potential to earn both sides of the commission if one of my options is accepted.  If the options are countered, I explain I will seek my own representation to help with the negotiating process.  The offers seem to be presented to the seller in a better light.

I hope all this entity analysis isn't stopping you from going out and finding deals!  I have found with SFHs, the lender won't loan to an entity anyway, even with personal gaurantee.  Insurance is tougher, too, ensuring entities.  That said, I have done what @Brandon Hall  and @Shawn Holsapple suggest. I have a mgt co (in an S-corp) and my multi-families are in an LLC. Commercial lenders & LLs will carry/finance an LLC-titled property. All rents go to my mgt s-corp. All properties have an in-house mgt agreement with my mgt co. All mileage for taxes goes through the mgt co, not each property. I can bill my properties for work I do through my mgt co and I don't need a RE license for that, as I only manage what I have a vested interest in. You can do all this for 13 different accounts and file all the tax returns for same if you want. The CPAs and attorneys will be thrilled. Don't worry about it and go find that first deal!

Say what?  They won't deal with a cash buyer with no contingencies 'head on'?  I guess what you need is a knowledgeable realtor.  They're all 'friendly'.  Like a friendly car salesman, right?  Get a shark who knows what they are doing!

Buy a used car or truck with cash.  Save the payment you would have been making so you can buy up (if needed) in a year or so.  Not having car payments will build your wealth immensely!