All Forum Posts by: Brady Hurs

So I’m trying to apply for a new tax ID number and I’m being asked where the business is physically located. I live and “operate“ the business in Georgia but the LLC was created in Indiana. Do I choose Georgia or Indiana?

I've never flipped before. My brother-in-law is a talented, trustworthy contractor. We talked about flipping together, me handling the finances, and him doing the rehab. 

Has anyone had this arrangement before? If so, how did you split up the sale of the property? Was there a contract drawn up? Lawyer involved? Other best practices?

I am a beginner investor (0 properties) and I listen to a lot of podcasts. 

One thing I'm struggling with is whether or not to get a loan to buy property (that's called leverage, right?) or pay cash out right.

One side says pay in cash if you can.

The other side says don't ever buy all cash. Their reasoning was that lawyers foam at the mouth if a tenant gets hurt and YOU own it. They are less likely to go after you if the bank owns it. 

I've learned that if you put an LLC on the place, then you don't have to worry so much about that.

Is there a good cash/loan ratio to have?

Wanted to see what my BP buds have to say about it. 

Thanks in advance!

The Confused Beginner

I'm going to be totally transparent here.

I'm getting tangled with the "analysis paralysis". I'm learning a lot but after reading many posts and listening to many podcasts, I'm always left with more confusion. 

The answer I'm looking for is not so much "how to do this" but most so what road to go down. Here's my situation:

After being totally broke 5 years ago (has to ask a stranger for gas money once), I found $30 in my couch and started an internet business that is now doing VERY well! 

Then Uncle Sam paid me a visit to say thanks for all my blood, sweat and tears. After expensed I'm netting about $20,000/mo and I don't know which aspect of real estate to approach. That said here is my real estate "whys/wants":

• #1 Lower my tax burden.
• Get better returns than the stock market.
• To have a "mother goose" that returns cash flows household expenses after I sell the business in 1-2 years (about $8,000-11,000/mo).
• Have a management company run everything. I want to own not run.

All this said, what aspect of real estate would you go down? 

Thank you so much in advance. I wish I could contribute more on BP but I literally don't know what I'm talking about. I'll defiantly share my future "mistakes/learning opportunities". 

Thanks Chris! What would you think about demolishing the "very small house" and work on selling the land? It is in a floodplain which makes me a bit weary. Thanks for all your help!

I'm learning about investing and want to purchase my first property. 

My mom has a property that she desperately wants to get rid of. Here are the stats:

• Small 1 bed, 1 bath on 1/4 acre 
• Needs about 3,000 in rehab
• Currently renting for $500/mo
• She is offering to sell it to me for $30,000 (what's left on the loan). Worth about 40-45k (future leverage for next investment?). All in with closing costs and repairs= 36,000
• It's in a flood plane. Stats show it's only flooded there once in 127 years. 
• ROI= 9% with the $500 rent (even with the flood insurance).
• Good government jobs and schools in the area. Low crime.
• I can't take over the loan because the house is in her ex husband's name. I can pay cash. 
• When it was not rented, she was trying to sell it with no luck. 

Would you take this? I'm not going to make an emotional decision because it's my mom. I'm going to stick by the numbers.