All Forum Posts by: Ben Sears

@Jack Ventura I'll be honest...I can't speak for Colorado but I'm going to assume that you're using a national lender. I had this experience with Wells Fargo on our last property where they wouldn't lend to my LLC. This is lender discretion trust me. I'm now working with a local bank that couldn't be happier to lend to LLC's. Use some caution purchasing in your name and transferring to your LLC. There's always a chance that you could trigger the due on sale clause in your mortgage contract although I think this is pretty rare if you search the forums. My advice would be to seek out a small community bank that does commercial/portfolio loans and make friends with the loan officer. Good luck!

Is a 500k home on the high side for your market or is this an "average" home? You should be finishing your house out with amenities that are comparable to the neighborhood (houses have granite countertops then you install granite countertops, etc.). The appraiser will pull comps and will enlarge their search area until they find something comparable. Get a head start on this by working with a good realtor to determine if there are good comps in your area. Remember that the appraiser may not be from your area so having backup comps from an agent that knows your area is a good idea. I would suggest creating a small packet for the appraiser that includes comps, a list of renovations, and a break down of your expenses. This isn't made to tell the appraiser how to do their job, but it provides further evidence in support of your desired appraisal price. 

Keep buying! You can shadow professionals but remember they are going to run their business how it works for them. The principals they teach you might not be applicable for your situation. You'd be much better off gaining a mentor to bounce ideas off of while making your own way.

What type of inspectors are you referencing? Code enforcement, appraisals, home inspectors? This makes a big difference as different inspections are mandatory or for informational purposes.

I like my Lowes American Express. I do a lot of rehab work and its 2x points at Lowes with a $100 gift card for every 10k points. Interest rates are comparable to other cards that I've seen. I have a business account and get the 5% discount. I believe it also gives 3x points on cell phone service through major providers but I haven't done this yet.

My thought would be to keep the tenants for several reasons. The first being that you will likely save time and money as there will be fewer repairs since the house is still occupied. You'll likely be responsible for "normal" home inspection repairs rather than an entire tenant turnover. Secondly, I'm not sure that I feel comfortable removing tenants who may like living in the property if the house can be sold to another investor with only an increase in rent. Hope this helps.

Define wonky. Is the foundation cracked, falling in, water leaking, etc? Aside from this, Property A seems like a good deal on the outside. I would need to see the specific numbers to render a better judgment.

I don't see any issue with this however I don't know the laws specific to Oregon. In Virginia , we can managed owned properties or properties for family without a license. We wouldn't be able to advertise as a "property manager" without being properly licensed.

The easiest way is to call your agent and get them to give you a quote. I wouldn't trust myself to figure out what the insurance premium is going to be. Ask a pro!

Yes. However if I was in your shoes with $250k in equity I would be looking at a refinance on my primary residence or a HELOC and purchasing an investment property in cash. I don't see the point in paying 20% down on an investment property while sitting on that much cash.