All Forum Posts by: Michael R.

From this statement here:  "we may only do one property in our first year up there (or we may do ten, we just don't know" It sounds like you are trying to make your financing dictate your strategy and it sounds like you have too many options.  If you had one financing option, your strategy would be dictated for you - again, you are in a great position.

Consider coming up with your strategy first -- it will make your decision making much easier -- and is the way you want your business process to be.  Your business strategy is a result of you determining what your investment objectives are.  Take your three options and make some pros / cons lists along with 1 / 3 / 5 year objectives and map a plan to achieve what you want.  If you haven't checked out The One Thing yet, you may benefit from it - I did. 

I hope that helps.

If you haven't had luck where you could be directly involved with the property and your investment operations - I'm not sure that investing where you would be removed from the operations would improve your business.  It's like any other business -- If you can't make it work small, how are you going to make it work on scale?  

My advice is that you need to improve your craft before you look elsewhere.  You're losing $100 a month -- how can you improve that situation and turn it around?

I hope that helps.

The Attorney and the CPA are both benefiting from working for you.  I tend to agree with @Rob Beland.  I would continue to read and continue to shop around -- getting three quotes from three different CPA's and Attorneys.  Delaware's state website has a Business First Steps web site that can help you better understand the requirements as well - search for Real Estate Investor on their site.

I hope that helps.

The podcasts are a gold mine of information.

I have one for in VA that I have used and will continue to in this region (VA/DC/MD). His inspections are $400, but he gives me a lifetime "warranty" if you will. Meaning, he takes 4 hours to go through houses with me and provides me with a binder ed up inspection with pictures and barative. I can call home as long as I own the property.

Excessive? Perhaps. But I like that. I've never called him either.

I hope that helps.

 So you mean to take a line of credit from your current house, that makes sense to me now. Thank you for clarifying your other statements too.

re: starting your LLC and deeding your house to it is, in my opinion, a great idea. I say that because the longer you are in business, the better it looks for lending purposes. But I would strongly advise putting a plan in place to cash flow and to outline what you want your outcome to be. Possibly get to NY and hit up the REIAS in NJ and NY. PA too if you are so inclined, but to know markets like Harrisburg from NY or NJ is ambitious. I thnk your ambition is awesome and the truth is, your strategy will unfold as you get there and grow.

I would consider a CPA, as I have found mine invaluable. I have an LLC for a non real estate related business l, but you have given me some things to think about with my own strategy. Thank you for that!

You can get pre-approved on line and over the phone, but to submit an offer you will need a letter from your lender stating what you are approved for aND your agent wI'll subit that letter with your offer. And it is easy as long as you are organized, have your tax rerurns and your personal financial documention together.  Note though that if you are approved for 200K and you want your offer to be around 175K, don't show your entire hand. Meaning, your approval letter should reflect lower than your approval rate.  It should be a strategic play and not reveal your full amount of financing. Does that make sense?

When your partner built his house - did he have a project plan, budget and scope that he stuck to and was he successful with it?

This was a great listen.  Thank you for posting.

@Anu G. Raising your score depends on many things - managing them all is important. Without getting into details -- make sure your DTI Ratio is <25% (<15% ideally) and ensure you pay on time.

I hope that helps.