All Forum Posts by: Andy Collins

The one thing I see over and over on BP, is people saying "I want to start investing but how do I get my down payment",,,,you get your down payment by saving.

When I see something that cost $1k, I see about 10% of what it will cost me to add a house (I figure the average cost for getting in a house with a hard money/traditional financing is about $12k).

It's not like you can't save and try to make more money at the same time,,saving is a mental thing

I've been under many noncompetes in my life,,they aren't simple one paragraph contracts.

Many things have to be right for it to actually hold water, I'm mainly familiar with Texas,, here if your not compensated for a non-compete you'll probable get it thrown out,,it has to be reasonable (you can't make it for too long or cover too large a geographical area,,,sometimes it will cover a portion of a city, I've been under two that covered the country, but guess what, it was a very, very small area of expertise, and it wouldn't be any good unless it covered the entire country.

Anytime you want to write a contract, go pay an attorney, you don't need anything complicated, but the first thing you need to ask is if you can even accomplish what you want to accomplish under your state's laws

BTW, if people tell you "I live in a right to work state", that has absolutely NOTHING to do with a non-compete, that is dealing with unions, but I often hear people say that related to non-competes

@Steve Babiak I have them ask for front and back copies of checks, or front copy and copy of each statement for that period (usually 12 months) for a property or two everytime I refinance one. Its easier to go online and print out the front and back copy of the check (its available online at most big banks) than print out just the front and the entire statement

I have one tenant that pays through the Chase Quickpay, I was refinancing that property, and of course the underwritter wanted to see rental receipts from the last 12 months on that property, I printed out the chase screen that shows every transaction,,,they accepted it.

For people paying with check they want to see the front and back of each check deposited

You can't get a conforming mortgage (Fannie/Freddie) in an LLC, they are only for individuals, which is why the banks are turning you away.

If you are a very high net worth individuals and don't do anything but invest (dont' manage the property, the rehab, repairs etc) an LLC might do you some good, if you are personally involved in any of the above, or even guarantee the loan, the LLC will give you little protection.

As stated above, your management and insurance are your two front lines of asset protection.

You can have a dozen series LLC's and if you do something wrong in the management of the property, you could still be held liable.

No, your opening up a can of worms, don't go there.

Basically you would be involved in the "seller" defrauding the lender,,,

With what your looking for, I would probable recommend an outlying city, not Dallas itself. In that price range maybe Richardson, Rowlett, Garland or Mesquite (there are others, these are the areas I invest in so I know they have houses that will fit what your looking for.

As far as 7% appreciation, if anyone promises you that, they are a liar. That is far above the long term historic gains. At that rate a house would more than double in value every 11 years,,that just isn't likely to happen

Just because you can get creative doesn't mean that a more traditional arrangement might not be best.

If you have heavy rehab cost and it will take "x" months to get it ready and get a tenant in, i would probable do interest only for "x' months, then go with a 20-25 year term, obviously no prepayment penalty.

This is a relatively inexpensive house, don't drag out paying it off forever.

My brother and I (he is also an investor) partnered one a house one time,,,it didn't take long for us to realize if we were to remain friendly the partnership had to go.....he bought me out and we never mention that house,,,,things go much smoother that way

andy

I am not even sure you can get a HELOC on an investment property, you can on your personal residence,,but I don't think they are for investment property. If you can, I would really question being able to get up to 85%, since most mortgages are only for 75% on investor properties.

In Texas we can't even get a HELOC on our residence for more than 80% (state law, until not that many years ago HELOC's weren't even allowed in Texas)