All Forum Posts by: Diego Alvarado

You have to talk with your mortgage providers to see if they are allowing you to move them to an LLC.

In rental is good to have an LLC for liability however for taxes there isn't a big difference in small investments.

Your credit report won't show the mortgage anymore but you still have the liability in your history. As soon as you remove the mortgage you will see an impact on your credit report.

Another thing is that you have to make sure the LLC has its own bank account or you will be commingling.

One thing that I am seeing that won't benefit you is that you can't benefit of homestead if you do this which will increase your property taxes though I am not sure how that is impacted in California. In Texas is a big deal.

Homestead has other benefits but those depends on the state too.

 This is really scary, if these two new BP users just created an account and reply to this post but they don't comment on Ray, I will be running if I was you. Same tactics will be used during the course for you to spend money.

Hey @Chris Diaz you are also new here, are you Ryan?

Hi Nicholas,

It is common in most market not to get a lot of leads, mainly when the price is high, but it takes around 2 weeks to a month to really find the right person.

Make sure that you are in the ranges that other rental properties are in your area.

Hi Hector,

I assumed that your house is expired now. I would need to know more to help you. What you are asking is the same question that everyone has when you start in real estate investment.

The solution for financing is what Jay mentioned.

I think you need a real estate agent that can help you here. Real Estate Agents should be the ones that should give advice on this.

 Yes, sure. DM and I would look at it and give you feedback.

I am up to meeting other investors and discuss strategies and possible partnership.

Hi Nathan,

I would try to rephrase to make sure I understand better. You have two properties, which are in a blanket mortgage and you use a property management company to manage them. The numbers get tight as soon as you get some vacancy over the years.

Your idea is to grow your portfolio taking cash out of your 2 properties so that you can buy two more to balance and have  better cash flow.

This is how I would look at it:

- Properties are constantly in red, if a few vacancies are causing you to get in red you are not building your reserve fund.

- To expand your portfolio you have to think on doing self-property management, or refinancing to get more properties won't resolve the issue and add more problems. You have to be careful on taking this decision.

Problems to solve:

- Reduce vacancy.

- Improve in property management.

Then you can think on expanding your portfolio.

A good investor would need to have the hands on the ground to make sure that they understand what is going on.

 Few things here, first you can read "The Art of Negotiation" by Tim Castle.

Negotiation doesn't always mean to get the price down for the same work. Negotiation means to adjust our goals so we can get the same results. (Both be profitable)

In a contractor/investor relationship when built you need to find a real partner with whom you can negotiate so prices don't scale. 

In the experience, there are some contractors that overpriced to mitigate the risk of the unknown. Other overpriced to get a higher margin depending on the area that the project is, the people that are dealing with, etc. 

All this is in you to identify what best you can do with what you know.

At the end, this partnership will build on trust or you won't be able to sleep at night.

You might get a difference of 50% more or less between contractors, the idea as many here mentioned is that you have to make sure you itemize as much as possible.

Flipping is a project management work, and you have to be very organized.

Saying all this I was thinking that it should be a better way, this can be automated, but it seems that there is no something that everyone is willing to pay so that is why no much solutions out there.

@Clint Jusino I will reach out to get a peck on your spreadsheet, I am also planning on a new flip now and estimating cost is the most difficult part.

Hi Ian,

In a recent episode of the BP podcast I heard saying one of the host (I don't recall who was), that he started making a deal with an investor with no money but he will do all the work. The caveat here was that it was family.

So answering your questions:

- A course could be good, but I haven't done any, always my recommendation is to have your hands dirty. Start low if possible, offering yourself to the companies, and listen a lot of podcast from people that did this.

- Partner is always better, but to put your name out there you have to do it yourself. All depends on your goals.

- It is possible, but it will be long hours.

- Walk the neighborhood and knock the doors, the conversion is greater but you have to be there.