All Forum Posts by: David Moore

Gee, Marcus, I painted a whole house exterior last May.  There are enough dry days to get it done, and this is only a garage...You can knock that out in a day, I'd bet. 

@Elizabeth Colegrove 

Have you taken any classes on Land Trusts? They could protect you. I haven't gotten around to putting mine in land trusts yet. I need to get my title company used to one first...I'll convert one of my rentals to a land trust sometime in the next couple years to cut their teeth on it. It can offer you some level of cover. I know it sounds incredibly difficult, and I would never go out and buy a book on it. Go to a REIA and find out if they teach a course on it. I had a good one day course on it. Cost me about $99.00, and I plan to take it once more....just to get all the concepts.

@Elizabeth Colegrove 

Yes, each in my LLC has a mortgage, but here is a caveat. They are commercial lien mortgage. But a mortgage nonetheless. I have a portfolio lender.

I have an LLC and I absolutely love it. What is great is that when I show the property, I can refer to the partners, or my business partner, and not be misleading them. "The business parnters pick the renter". In MInnesota, renewing is a breeze, and costs nothing extra. All my contracts and purchase agreements require only my signature, as Chief Manager. When I sign off at closing, only I have to attend....no need for all signatures. On property tax statements, there is my business name. Another benefit is having an LLC with a non-copyrighted title, like 'Meekins County Parners LLC' makes your LLC not look like one to the non-discerning eye. Kind of looks like the county owns it. In this title, Meekings County is not copyrighted. Anyone can use it for a business name.

@Erin Elam 

I had not picked up that your primary insterest was flipping.  I guess I was seeing the world through my own lense, being a buy and hold investor.  Bank properties can be in really good shape. 

@Chance Cooper - I look at sights like Redfin or even Trulia, or sometimes I get notices from real estate agents about foreclosed homes. You can also go right to HUD. In fact, an interesting site from which you can check out HUD homes for sale and what others have sold for is http://www.hudhomevalue.com/.  That is where I commonly look.

@Erin Elam 

I would have only sought SFR owned by banks or HUD. I've learned from experience that indiviual sellers are way poorer at understanding the actual value of the property, whereas banks tend to price them in the right ballpark, at least in my area. Banks have the necessary detachment.

@Chance Cooper 

I just want to say, congrats on $300.00 cash flow per rental. Nicely done.  I assume based on your working you would use $20,000 per rental for three rentals, using $60,000.00, and keeping $10,000.00 in reserve.  My personal approach is to  look for properties where my monthly rent is as near to 2% of the purchase price as possible.  If you are getting $300.00 cash flow per month on a house where you are getting 1% per month of the purchase price, then that is not the best.  But it sounds like, based on your description, you are getting them at really good prices. 

I understand the desire to get one paid off.  I've got one paid off, and I actually walked the grass just like Dave Ramsey said...he says it feels better to walk the grass of a paid off house.  But now, I'm content putting 25% down, instead.  That 25% makes me a smarter shopper, and I like that big up front equity stake.

Greetings and welcome to BP!

I'm an investor in Minnesota and I live in the Twin Cities.  You will find a lot of good advice on this forum.  Your comment on toilet overflow calls is funny...it is a common misconception from non-real estate investors.  I have three rentals, and I've never had a plugged toilet call.  I think the key to this is acceptance and learning.  Book learning is great, like J Scott's book on real estate investing.  But you have to jump in at some point.  My first deal?  A great house, and my worst investment.  Good news is 2nd was better, but 3rd was an absolute bargain.  Now I'm sitting on house #4 bid going after @Dawn Anastasi rates of return.  Like J Scott says, know your backyard and build your team. 

Back to plugged toilets.  Screen and then train your tenants.   The right tenants will take care of the house for you.  You are in the right place to ask questions...keep asking away.

I agree.  I am betting they offered this based on a state of MN or federal grant.  It is an example of the easiest financing option being the worst choice.  Who, with an income limit, is going to leave the city where they can get services cheaper to live 30 miles further away from all that support?  The thinking is backwards.  I agree totally with the reasons I would build there as well.  Their customer should be the affluent.

@Matt J. 

Here is how I played it, for an example.  In my situation, I learned of a great little market quite by chance, and I learned all I could about it.  Now I'm quite familiar with the best place to rent, best area to flip, etc.  I have a team down there who handles all repairs and maintenance.  In the Twin Cities, I cannot even get an electrician to come to my house for less than $500.00.   The cost of doing the same business here is expensive.  Doesn't mean it won't work for you.  It sounds like you don't know the suburbs....where to invest, where to avoid.  Find your backyard, like J. Scott says, and concentrate your investments there.

A portfolio lender is a community bank.  It will be a small branch.  The easy way to find them is to call a realtor or another investor, and ask them if they have one.