All Forum Posts by: Chase Busick

@Sarah CastorDefinitely something to consider. In Oklahoma, they just changed the law about wholesaling where we can't "publicly market" without a license & still gets kinda iffy, if the licensee is doing any transactions with wholesalers . There are companies that do just wholesaling, kinda like New Western. But the licensee definitely has to look into the laws & speak with their broker too in order they're in compliance. The laws vary by state, so considering, reaching out to others in your area & looking more into NY's laws would be great, as well as figuring which route would be best for you.

Depends, you can go either way with 20-30% or trying to leverage a little more if possible, whether you can do another conventional or 2 breaking up the big down payment for some smaller ones. Can also go commercial lending route. Overall considering how much you want to put down & how much you'd prefer leveraging can differ, especially on what deals you are considering, what your numbers would be and what your comfortable with.

@Blake Billings Congrats! It is actually great to hear your story & info about it since I am about to manage one here soon. From my experience, I agree with you & @Alyssa Dyer that by the room expectations from guests were definitely different compared to an entire home being available. Assuming you like the entire home concept as you can earn more & is more easily booked vs by the room when possible while you're not trying to house hack? 

@Tri Nguyen I love the other posts from @Micheal Briscoe, @Dahlia Khalaf & @Lara White. I'd definitely connect with more people within this area that may help you! 

The long term growth for most of OKC, Tulsa & Norman are consistently growing. There is a lot of people moving into these areas from out of state, whether because of the better cost of living compared to some more expensive states/areas, job related, etc. In OKC there is a lot of gentrification, new things coming up, businesses bringing in jobs, & making it a more exciting place to live. Your considerations for Norman/Moore is something to consider. Norman is also a very popular college town. 

I agree with @Lara White that a lot of the things you are considering can be dived into deeper with a conversation about all the details she mentioned about time, metrics, & your overall goals. Just like everywhere else, there are a lot of both good/bad areas within each of these places. Some areas within the OKC metro are better than others depending on mainly what you are looking for & wanting.

@Chris Cooper I could see you getting a lot of interest right now. I ended up looking it up & it is unique. Also very close to Tinker AFB. 

I think that the layout is good, but then you are mainly looking at getting tenants that are looking for 1 bedroom's. Usually people who are younger that don't have families yet or are thinking about starting will consider more space & bedrooms as they grow. Investors will look at this and a lot of other things which can influence their own desirability for the property & if they want to pursue it. 

You mentioned they have strong tenants but the potential buyer will definitely have to still consider them, how well the current owners have been managing the property, estoppel certificates, & more. The new buyer will be also buying the current tenants & lease agreement that is set in place versus starting fresh, which can be looked at good/bad depending on who's considering buying & what they are willing to take on based off of their experience/skill.

@Leonidas Cicio Congrats on joining the BP community. You'll be able to find a lot of good info & connect with a lot of people! Like how you are getting started and would be something to keep working on.

I think the LLC is a good idea as long as you have set it up properly and are now managing & running everything through the business. This is good because it gives you some asset & liability protection, then also being able to take business expenses & deductions.

I would highly recommend connecting with qualified professionals like CPA & attorney's, etc. within your area that may be investors themselves. I think that will be a big move for you is to connect with other investors on here & also within your area that way you have more people to work with. I would also recommend going to free meetups where other investors go to learn and build relationships with others as well as key people that may support y'alls business. 

Definitely keep up with your personal finances that way you can be solid to future lenders. Overall just keep making consistent progress! 

@Danny Vu You definitely have a lot to consider! I like @Doug Spence's post and agree. You should think of the different strategies you can use if you were to keep the home, what you'd have to do or on the flip side the selling considerations. You can possibly refi & then use the money for another. I'd really consider a lot of people's and your professional's opinions, go over your goals and try and make a decision together for what y'all believe is the best option moving forward.

@Rebekah Martin You put together a great summary of the book. I like all the key points you found, yet I haven't read the book. I agree that our time is our most important asset and definitely think we all need to take this into consideration. Yes, money can provide future freedom and I think we can all look at our own personal habits to see how we are spending time and resources. Great Post!

@Harrison Payne I would highly recommend talking with some attorney's & CPA's to go over tax & asset protection that both own property & have done work within investment/rental real estate. You'll most likely find quite a few here, & in your local area that are doing business. 

You do not necessarily need an LLC before your first deal, but the downside of that is that you are liable if something happens since you are going into business with rental property. By not having it set up properly you are increasing your risk as you may own the property in your own personal name which can be found in public records. Even though everything may go/run well, it's not "if" something will happen, but "when" something will happen. By having a business & investment property you are potentially bringing in a lot of inside liability (from the property, if something were to happen, tenants, contractors, etc. & outside liability (if you were to get in a car accident or something & it's your fault). Overall not trying to deter or scare you, but to help you before you get started with considering these very important things to protect you, your fam, & your $/assets.

Adding multiple properties to the same LLC is also another important thing to consider based on a lot of factors. Like how long are you holding the properties, how much equity do you have in those properties, do you want all of those in the same entity subject to the risk of the other properties, what your overall goals are, how much knowledge/experience you have, how the entity is structured, etc. Which would be another great conversation with a legal professional, other professionals & other sophisticated investors that consider tax and asset protection a big priority.

With the FHA loan you will not be able to close the home in the entities name, because it is a loan product specifically for first time homebuyers sponsored by the government. There are still ways you can protect yourself like trusts that may help if you are house hacking to decrease liability until you can change legal structures in future. Typically with FHA they want you to live in the property as a primary residence. With the FHA loan too, you have to consider their rules/regulations & what they will approve for a home (depending on how many repairs/shape of the property). FHA is a good option for living in, possibly house hacking depending on the home/situation & eventually converting the financing & legals structure over in future to better serve you.

Hard money loans is another option, but brings up a lot of other things to consider with your bottom line, how fast you would be able to refinance, if it's just for acquiring a place that's turn key or if you're about to do a rehab, etc.

Real estate is a viable option compared to bonds. Overall There are a lot of pros, cons & benefits within real estate & almost every potential investing option we ultimately consider. There are also a lot of other factors to consider like your age, how much $ you make, are comfortable with putting aside to invest, your knowledge/experience of what you are wanting to invest in, etc.

Some people like the security with which bonds do provide, as usually you are locked into a rate for x amount of time. You are definitely not going to lose too much sleep, as it is a more conservative/stable, less risky investment as long as you have a general idea of how it works, what type of bond it is, & your overall knowledge of investing, bonds & that process. 

It is the same for real estate, where a lot of it comes down to your skills, education, experience, mentors/community, how well you're systems are, how well you can analyze/find/buy a deal, how well you run your business, etc. Normally you have a lot more benefits with real estate, which comes with more work here and there, more control, more risk, physical tangibility, leverage, potential cash flow, etc.

There is always a lot to consider when making your decisions, so learning from a lot of different resources as much beforehand is always a plus.