All Forum Posts by: Chris Davidson

@Ashwin Abichandani it would have to be under the LLC name. Also major rules on this and worth looking into. You have to pay tax on any leveraged portion (ie if you get a loan), you can't use depreciation or write off expense for taxes (probably one of the biggest advantages to REI). Find a company that manages SDIRA's and ask them questions.

For getting loans you must use a non recourse loan and can usually only get up to 60 LTV. Rates will be higher. Lending may be more ideal out of a SDIRA. Below is a local company to me that helps with SDIRA's and they have some decent info on their site.

https://mountainwestira.com/wh...

Cheers!

@Kurt Gutormson yes, but the seller is going to has to maximize their return or they have boot to pay. thus if they sell a property for 200k and carry 180k they still have to spend 200k and likely only pocketing 10k from the sale after fees. 

The reality of this working is a smaller carry, or someone flush with capital. 

@Christopher Benedict you are getting there and have a few options to give them but not too many to confuse them. There are closing cost so either you will need to pay all those or have some downpayment to cover them otherwise the seller is paying to offload it. 

If they are stuck on a rate push the amortization out and do a balloon, otherwise I would work on getting the rate lower and the price they want as you will get mor principal paydown vs less with a longer amortization. IMO I want a 5+ balloon, but if the deal is right will do it with a shorter.

Find out what she is looking to do though if she needs a downpayment for a house in Tampa that will be an issue that has to be addressed some how. 

@Vincent Anthony bratt with it being raw land and you on the creative RE financing forum, I would see if the seller would be open to carrying the note with a balloon ideally a few years after you have it stablized.

Land is a trickier one to get financed, and if there are low improvements good chance the seller doesn't have a loan on it, and might be open to carrying it for the price he is looking for.

Cheers!

@Evan Rumble either act like you are a tenant too (can't do repairs yourself on their unit) or be upfront you own the place. However keep it professional. 

RE is a slow game make a plan and stick to it revisit it each year and adjust as needed, but you shouldn't be making massive changes in your strategy. 

Get an different card/ account to keep track of all your repairs/ expenses and run everything through it, will make taxes much easier when you don't have to split out personal expenses. Before you post your ad look at others in the area and see what looks to be working and what isn't. 

Way to get started!

 Where you are investing. Where you live will only add to taxes, but where the property is located is the laws need to be more concerned with.

 Not sure if that was a joke or not. But I say some people push the support animals or ESA's. Quite frankly is never an issue when I allow pets, but only seems to come up if there is carpet in the unit. 

For subfloor if you have extra primer or paint laying around can always paint it/ seal it.

@Eric Brown Do you want residents in your building... If so run the numbers see if it makes sense. Should you do apartments or commercial or a mix of the two.

Best of luck!

Quote from @Mo Green:

Update: I decided to give Celeri a try on a new applicant’s pay stubs.

First impression, it’s pretty simple and results were spit out in ~15 seconds. One of the paystubs actually failed the check, so I’m going to reach back out to the applicant to get their story. Definitely wouldn’t have detected any of these flags with the naked eye.

All in all, feels like it’s worth spending a minute checking the docs with this tool before spending hours trying to chasing down employers.

 Like @James Are said find the employers number from a 3rd party not the tenant and verify. It doesn't take long. I'd be more worried about getting the applicant to sign disclosures that you are running their info through a screening service. What if that service is selling info pulled from pay stubs...

Sometimes fewer tools make for a better job.

Our rules are carpet no pets, no carpet follow the pet rules. I think it all depends on screening and prepping the unit. If you are a hard no-go on pets you will run into the I have a service animal tenants. 

@Alan Asriants like you said well renovated property (keep pets in mind during process) and attract good tenants. 

I have had the nightmare tenant with a pet, but the majority of the pets haven't been a major issue.