All Forum Posts by: Justin Johnson

thanks @Brian Mazzilli.  

I am curious about how people who are already investing (and have been for a while) structure their bank accounts. As always, I will talk to my accountant and bank(s) when it comes time to get it all setup. I used to think that having a separate bank account per property was the way to go, then I thought that might be too much, but I recently read about investors who have a separate bank account for each of their properties and 3-5 properties per LLC (I'm not setting up an LLC *yet*).

For a beginner, what is a good structure?  Is it hard to transition from that structure once you are a more advanced/seasoned investor?  Why is this a good structure?

Thank you!

JJ

@Blake Edwards of I know it's so worth it. that's why I've sick to it. after I got my goal, I'll readjust my aggressive saving plans and start paying on my student loan while saving about half of what I currently am (unless I get the promotion at work that I'm pushing hard for, not counting on it but it world push my pull my goals closer by a ton)

@Blake Edwards it sucks so much!!! lol

@Blake Edwards

I am still "investing" in my 401k through my employers plan. I am only contributing up to what the plan matches and nothing more.

I also have a liquid savings account that I am depositing 40% of my pay into for my seed capital and first property (almost at my goal!).

@David Flores thank you! I've been reading so much lately and actively digging into concepts and asking many questions trying to learn at much as I can. I understand the whole buying a property with a non-mortgage loan because of the many times that banks won't finance and then turning around and refinancing the property with a traditional mortgage to pay off the other loan. I was just super curious about the hard lender, there's so much in my area (where I live and where I grew up) that banks wouldn't give a loan on. I know for certain that I will not be using hard money for my first deal! I am I no way ruling it out alli together though.

@Aaron K. z that's what I was thinking! It struck me as odd. I'm definitely going to have to do some more digging

During my analysis of several properties that my real estate agent has emailed me about, I ran across this one that has really stuck out to me.

This 2 story, 4 bedroom house was listed in the MLS as a fourplex but it is really just a 2 story 4 bedroom house where 3 of the bedrooms are rented out to people. I've run the numbers many different ways, looked at it from all angles that I can think of, and even run "worst case scenario" analysis on it. Talking to my realtor, he stated that in order to get it fixed up properly, each "unit" would potentially have to have its own box and other work done up bring it up to code. I will make sure to talk to a lawyer and city zoning officials (and anyone else I need to) up make sure of the details, but how can people rent out a room in their horse and not be required to do the same? Could this property be rezoned or somehow reclassed so it wouldn't require having the extra breaker boxes and wiring/electrical work done? Is there a way to make this property a single family home, but still rent it out as it currently is?

Thanks!

JJ

@Joey Gedgaud thank you so much. I haven't done any hard money (of regular loans for that matter) yet, I was just trying to understand this concept.

Hello and thanks for reading this. I'm a complete noob to increasing and am still currently in initial learning phase while saving up my capital for my first investment property (I will have met that savings goal on 4/24/2020).

I'm currently reading "The Book on Investing in Real Estate with No (and low) Money Down" by Brandon Turner and have questions (I always have questions).

In the book, Brandon talks about hard money lenders and how to use their loans to get deals both flips and buy-and-hold strategies. He mentions a close that he bought, his first flip, a real "fixer upper" type of house that banks wouldn't lend against. He went on to food a hard money lender and took out a loan for 100% of the property and bought it and attracted fixing it up. After 9 months, he decided to stop trying to sell it and rent it out and then refinance it for a regular, 30 year mortgage and let it cash flow. I get the idea of refinancing it to pay off the hard money lender, what I'm curious about is: Brandon bought this house with a hard money loan and held it for WELL over 9 months before he decided to refinance, how did he do this with "absolutely no money out of pocket"? Were there no monthly payments for the hard money that were having to be paid back? No "interest only" payments for all the months that the loan was held? How does this work?

Thanks,

JJ