All Forum Posts by: Denver McClure

Hi @Jill Jay, reach out to @Jeff Nash. He has plenty of experience with real estate investors and real estate professionals!

Hey @Will Walker, I've actually done this at one of my properties. I built a 3 storage unit behind my duplex and rent all units out on neighbor. I'm not in an HOA, so I went ahead and did it on my own. You should call your municipality just in case, however if you aren't pulling power/water/gas to the storage unit, then they may just give you the green light on your project. Feel free to reach out if want to see pictures of it, or if you need tips!

Hey @Darren Redfearn, I'd recommend @Jeff Nash as a CPA who can help with your needs. He may also be able to point you in a good direction for a RE lawyer as well.

Hey @Daniel Alexander, I'd caution you using a HELOC to fund a syndication. Syndications are fantastic real estate opportunities, but you don't have control over the asset unless you are a GP. A HELOC should be used as a short term funding option, so a BRRRR would be a better option for you as you can cash-out refi and use those funds to payoff your HELOC. Consider a Margin Loan as well if you have that option with your brokerage.

Hey @Matthew Schellberg, speak with your life insurance agent or the policy provider to determine if you are nearing a point of 0% interest policy loans. It's common on a few different policy types, and a feature I look for when clients desire to use life policies to fund real estate. 

I suggest calling several local credit unions for HELOCs, and also looking into the national providers to find the best rate for you. Just be transparent with them when you outline your goals and use of funds. If you have a taxable investment portfolio, then I strongly recommend looking into using a Margin Loan against it first, before you go with a HELOC. Rates currently start at 5.67%-6.33% which is much better than any HELOC on the market.

Hi @Valerie DeFreitas! Glad to see you are working through the right steps of education! Podcasts, books, and meetups are exactly how I started, and continue to expand my RE knowledge! I understand your desire to keep making moves, even when you feel like you are stuck or the market doesn't meet your purchase criteria. I would emphasize that the financial preparation phase is just as important as the asset purchasing phase, so you should consider that as "making moves" when improving your financial positioning. As far as your portfolio at Edward Jones, consider using a Margin Loan (if offered) to help provide more leverage and liquidity to buy more real estate. Let me know if you want to chat about that strategy since its a bit complex. 

Hey @Peter Hamilton, I couldn't agree more with @Andrew Hogan on this one. Your decision should be based on a several factors other than just leaning into fourplexes or buying one large complex alone. Tax exposure, risk tolerance, investment timeline, investment objectives, and diversification are all critical components that should determine the way you utilize your funds and equity. Without knowing your specific goal for each of those components, I could only recommend "spreading your chips" across several different investment types that you are comfortable with and understand. Estate planning is also another topic that pops up when I speak with people in similar situations, so you should consider that as a factor as well. 

Hey @Mario E Gonzalez I would start by locking in a location first. It's great that you have the ability to work remotely and choose any market to start your investment journey. I would revisit your 4 listed options and consider this: Which states are the most landlord friendly? Which states will reduce your potential tax obligations? Which cities restrict the use of short term rentals?

Once you drill down into the best market for you, then I'd plan on your strategy regarding long term, medium term, or short term rentals. You can house hack with each strategy, but you have to ensure the numbers make sense before you acquire property. I suggest evaluating your deals by projecting long term rents as your projected income to be conservative. 

Finally, like @Lawrence Potts noted, if you do go down the path of adding an ADU, you'll need to prepare your finances for a longer battle of renovation costs, permitting delays, and vacancy costs. I've built an ADU on a rental property and it is by far one of my most profitable units, but only a strategy I'd recommend if you find an ADU friendly city and have the capital/lending lined up for the project.

Hey @Puneet Sharma, I've had a pretty good experience using keycheck.com to screen tenants that are sourced through FurnishedFinder. Everyone has their own preference on lease agreements for MTRs, but I choose to write a lease for each booking. I do set up a refundable security deposit and cleaning fees in keycheck as well.

@Jon Ful I'd look into Interactive Brokers if you have the ability to utilize a Margin Line of Credit on any taxable portfolio of yours.