All Forum Posts by: Alexander Felice

 good advice

Basically the bank calculates risk of the deal (obv). The more they know you, your ability to deliver, and your history, the less risk YOU are and they may be willing to take more risk on the deal. The more risk you are, the more capital they are going to want from you. 

I think what you're asking is: why does it matter how much equity the SELLER has to the BUYER. 

I'm not a wholesaler, but I used to sell cars. Say a guy has a car worth 10k and owes 10k.....he's going to fight for that amount because he doesn't want to go under water at sale. If the guy owes only 8k, I know I can press him to take a lower price!!! The opposite of that is true, if the buyer asks the seller how much equity they have, and the seller is 12k under water then there is no deal!!!

And for other reasons, it's important to know what the debt service is so you know how to structure a deal. 

this is the correct advice. 

Mentors are generally not guys who have giant sums of wealth just waiting around for some young stranger to walk in for them to bestow knowledge to. The guys you're looking for are working, and using their time in a valuable manner. 

If you want their time, you're going to have to provide value! 

Spend your time networking locally, spend your time on BP and just make friends. Let your ambition, talent, and goals be apparent when you talk to people. 

This is a tricky situation. I mean, you did offer them a place, but is there anything in your lease about this provision? Ideologically I agree with @Account Closed I'm just not sure what's lawfully concrete. 

Ultimately I think you just need to get the tenant in a happy place, get good tracked communication (email) and maybe something in writing stating what both parties have agreed to. You should either provide them with a place, or a discount on the rent prorated per day they can't use the property. NOT BOTH (obviously) 

Well Raymond, you made me feel so good about myself today. I evicted my first tenant last December, a week after her brother was shot and killed. I felt bad so bad, but she needed to go (obviously for reasons other than her family dilemma). I have been too ashamed to say much about it even though I knew I did what was best, until I just saw your post. So thanks much for that! 

Also, Joe I wish you the best of luck. It's hard to be strict but it's MUCH harder to deal with the hassle you'll create when being too soft! 

If someone wants to do business with you, they will, regardless of the LLC name. In the same regard, no matter how important you think the business name is, your clients don't care. It sounds like you want a name that has meaning, and value to you, and we can't decide those for you anyway.

Pick something 1/2 way professional and move forward. There are better problems for you to spend your time on. 

Those gurus cost a good chunk of cash. With what you're going to spend in mentor-ship you could use as a down-payment (in my area) for a cash flowing rental with equity. I'm not saying you can't learn anything, but experience is always the best teacher and at least the property has ROI.

Rates are really low for 30 year notes, and you make more money. If you really just want to have something paid off you can put extra principle down at your discretion. 

Interest saved over the 15 years can be substantial but you have to consider that someone else is paying it 

per REG D you cannot use a savings account if it will contain 'excessive' transactions. This is almost universally SIX (6) per statement cycle. You will be confined to use a checking account. 

Also, you don't have to mix personal and business accounts. You can own the properties under your personal name if you want but still have all the money flow through your LLC checking account. Technically, you should have NONE of these business transactions flow through your personal account. What I have is multiple checking accounts for the LLC for different systems. One for rent collection, one one for maintenance, and you can set up more for other reasons. Payroll, capX, etc.