All Forum Posts by: Adam Klugh

@Michael Noto Well, don't of the places had bad reviews when I looked them up. The interest rate seemed too low tied to up front evaluation fees. One place wants 3k just to get started with a promise to refund after first deal. I'm just afraid I'm going to play my money just for them to tell me it isn't a good deal.

Great point @Aaron Mazzrillo. And while there may be opportunity down that road, I have a team in place for the road I'm on. Just need that final very important peace - funding

Jackson, MI is in the middle of the state south of Lansing. You seriously avoid ALL of Michigan because of Detroit? 

I've been looking for Hard Money in Michigan. It's tough. LOT's of what appears to be a sketchy leads. Can anyone recommend a legit Lender that will finance a good deal? I'm new but I'm not inexperienced. I have 2 successful buy/renovate/rent/refinance under my belt using traditional financing. I have a great team and we are looking to move on another deal but I need the funds. I know I'm going to be paying 10+ percent for a short term before I refinance the loan. Any success stories with specific lenders in MI.

Looking for anyone who has gone through Dohardmoney.com or T-square lending or IntercontinentalPL. I have a great team and we are ready to toll but i don't want to get mixed up with a bad lender on my first try at hard money lending. Any reviews?

Does anyone have any experience with hard money lenders that serve the state of Michigan. I have called a few here and am trying to find the best option. What should i be looking out for other than points, term, and interest rate? I am primarily a buy, hold, and rent for cash flow investor.

So I recently had two really successful deals and now I have friends who want in? The trouble is, I have no idea what the best way is to deploy their money. I've heard that you can get into some big trouble if you don't know how to structure this type of thing correctly. So far my only experience with making entities is putting the properties I have in their own LLC. How do I get started learning about the best way to do this? Are their any books that anyone can recommend? Any Lawyers out there in the BP community?

@J Scott can you explain what you mean when you say my internal rate of return would be less? I am relatively new to the finance side of this, and while I have heard that term, I've never applied it to my situation before? 

2) when I bought this property it was initially intended to be a cash flow property. Every property I ever bought before this (the other two that I own) were buy and hold. I did not expect the real estate market in my area to take off running the way it has when I bought the place last October. 

3) assuming I'm willing to accept the risk of the market tanking in the next couple years, wouldn't it be prudent to cash flow the property over the next year IF the market continues to appreciate and I can avoid paying quite so much in taxes? I know that 'intent' is the important word everyone keeps throwing around but it seems to me like the real factor is convincing the IRS agent who is auditing me that my 'intent' was to buy and hold even though I sold the property for a 70k profit months after I bought it. Seems to me it would be not convincing if I held on to it more than a year. 

@Steve Vaughan as I was typing that I knew the reaction of most readers would be similar to yours. In this case, I thought the opinion was a little less biased since he isn't the listing agent and had nothing to gain from me selling.

The other deals I've done have been buy and hold and I already have a good property manager (He thinks I should sell too). I just put the place up for 1600/month and so far have already had some showings and a couple of applications. I don't see the renting as a hassle since it would just be adding another rental. Honestly I'm not 100% sure what the tax impacts would be since I've held and cash flowed every other deal thus far. This is just the first time I've had a team that could do such quality work so quickly that I have a 60-80K potential profit. I've just always heard that if you sell a place within that first year that the tax hit is BAD. especially for someone like me who has a good job that already puts me in a high tax bracket.