All Forum Posts by: Al Diaz

Cool.

Best time would be when you have some more money to your name, and your credit is in good shape. Don't expect to find a deal where you use none of your own money. 

Victor - I'd say safe is a relative term. Everyone's risk tolerance is different. What may be safe to me, might be too risky for you, or vice versa. Do your research, and determine what method of investment is most suited to your risk tolerance, and take it from there. The best safeguard against losing money is to know your numbers, but be warned - analysis paralysis is real.

I think that clustering is the way to go. It affords you the opportunity to use your own deals as verifiable comps to raise the value of your next deal. I am already working on my neighbor at my Philly flip, building the relationship in the hopes he will sell. 

Is it possible? I guess so, but the stars have to align to get a deal using 0 of your own dollars nowadays. If you try and go this route, then at least get your credit in order first. No one wants to finance a deal for someone who's ability to borrow, as determined by your credit score, is well, shaky. 

Hard Money lenders require that you put a down payment towards the purchase of the property + closing costs. The better the credit score, the more favorable the terms (typically). 

Correct. When there is no rehab involved, you are buying at a higher price point and eliminating some of your appreciation. Buying at a higher price point narrows your refinancing options as there won't be as much appreciation if you rehabed the property yourself. 

#1 - Thank you for your service! 

#2 - While using a VA Loan is a great tool for those who qualify, it comes with it's fair share of strict restrictions/guidelines that can make an offer less favorable to a seller. Seller's often have to jump through hoops to get the buyer's mortgage approved (I'm speaking from experience here as I recently sold my home to a buyer using a VA loan). There could be restrictions on timing of refinancing, so I would look into that as well.

You may find some deals in the boroughs once the foreclosure moratoriums are lifted and proceedings actually happening, but that is like 18 months away. Going upstate is an option, but you are competing against all the folks who are escaping from the city. I was outbid several times last year/early this year on properties in the Hudson Valley. 

Don't think so. Some states may differ in opinion though.

This is really a question for a tax professional. In my experience, your LLC will need to apply to be treated as a partnership by the IRS. At the state level, you will also need to change your company's status from single member llc to partnership and have the partners added.