All Forum Posts by: Don S

Thank you for creating this forum. I too am new to REI as a whole and have been researching and looking forward to wholesaling assignment. I would like to flip and eventually buy and hold for residual revenue but wholesaling generates the cash to be able to do so.

I am trying to figure out about asset protection. I was told that having a S.Corp own an LLC provided double added protection to personal assets and provided better tax benefits.

Any thoughts

thanks again!

Hello All,

Any updates with quality property management companies. I just purchased my first investment property within Baltimore City and looking for some good references to start with.

Thanks again

David Krulac never been lucky my whole life so I won't try my hand now. Thanks again for the information guys.

Thanks for clearing that up for me. As I stated in the beginning I am not yet investing but asking general questions that I have not seen answered on the site yet.

Ok thank you both for your quick responses. I am not considering this but would have to think that people are definitely doing it. In the example I gave of the 4 unit building would it still be unethical or loan fraud if the owner didn't rent out that 1 unit for a year making it like a primary residence? I know that its revenue lost but if you could get 0-3% down instead of paying 20% is it worth the loss rent for that year?

I have read that when doing certain loans the lender wants you to stay in the property for one year. I am assuming this is to deter investors from these loans as the down payment is usually lower that investment loans. How does the lender know if you are renting it out or using it as your primary residence? What are the penalties if you do this? If this was a 4 unit building would anyone consider not renting out one unit for a year just to get this special financing?

I am new and studying all the ins and outs of the process and was just wondering.

I believe all that's needed is for you to contact the utility company and get the accounts changed so that the so that the future tenant will be on the correct meter when you rent the space. Just make sure you have the meter number when you call.

Thanks

Minh,

I have not actually been inside the property as of yet but from what I was told it only needs minor cosmetic changes. These are just preliminary thoughts as I will have all figures before I do anything. He bought the building foreclosure in 2011 invested and is trying to flip it. He hasn't told me the expenses exactly I just took the figure that was on the site and divided it by 12 for the months. I figure it won't be that much either but better safe than sorry. Even if it was I don't see a negative to doing this deal. He already has tenants fully occupied in the building.

Is there anything else I should be looking for? I'm trying to find negatives but are coming up short. The value is expected to increase even more because they are currently building new town holmes in the neighborhood.

I have been checking out the site and receiving valuable information from you all. I am looking into purchasing a multi-unit bldg this year. A friend on mine is attempting to sell one of his properties so let me know what you think.

Sell price-95k currently appraised at 170k
3-units occupied each at $750 a month with potential for 4th in basement
30 year @4.5% $460 monthly payment
5k down payment
Expenses $385 month
Property Tax $245 month
Property Management $250 month