All Forum Posts by: Erickson Sainval

Yes, it could be occupied. It can be a big risk buying foreclosed property if you do not know what you are doing. Make sure the title is clear and if it is occupied by the owner that was foreclosed you might need to have them removed from the property. Do not be surprised if the property is a wreck. If it is foreclosed on by an investor and there is a tenant, you might have to keep them until the contract is over.

So many avenues to approach this. You could be an agent, appraiser, mortgage, loan processor, property manager, underwriter, etc.

Ask yourself what part of investing in real estate you enjoy, is it acquisitions? management? underwriting?

Have you started practicing some of these skills such as underwriting? Have you started analyzing deals so you can recognize a good one when you see it? Have you done market research? All these things can help build a foundation without having a W2.

You should be able to find many opportunities to join a real estate firm and be part of their acquisitions team. Another option would be a property management company to learn the asset management part. Another important aspect is marketing and leasing, cannot make money without a funnel of residents.

Besides interview questions another thing to help the work gets done properly is a contract. The more detailed the work needed, cost of materials, labor, pricing, etc. the better.

Just having kitchen renovations with a price tag will not do you good when it comes to the finish product. As I said, the more detailed the better. Having the dimensions, drawings, materials, pricing for materials, and how payment will be made.

Just like any person working for you, they must be held accountable. Words casually exchanged are not binding, but written paper can be.

Check your state's website for contracting and consumer affairs, they have a lot of good resources.

I would say at least 45 days out, or month and a half out form lease ending. Could be good to wait because of the uncertainty right now. I just left the phoenix area and there is an inventory shortage right now. Homes are going fast, and the prices are not lowering. So that 1-year wait could work to your advantage.

If you do not want to wait and ready for the next step you can always talk to your landlord. I have negotiated for a client before to break lease with no penalty. The landlord did not care as they had a large waiting list.

Get it in writing also!

Anything that shows up on your credit is used towards the debt-to-income. Also, they usually check to make sure HOA is paid up and current. They also check the property has insurance. As for if it is counted towards the debt to income, yes.

https://www.biggerpockets.com/rei/glossary/debt-to-income-ratio-dti

There are a few ways but basically you need to be direct with seller. You can drive around for signs that are FOR SALE BY OWNER. Talk to the seller, find out the reason for selling and present them with seller financing or subject to.

If you get with a title company they can probably get you a list of homes with a lot of equity or get a list of foreclosure homes from somewhere and start cold calling.

It is all about your negotiation skills and how you can help solve their problem for a win win.

I also always advise having an attorney look over the files.

Great plan, and as long as you occupy you shouldn't have a problem. I have used a similar plan but did it with single family. The one problem you will run into is ensuring there is enough equity to successfully refinance into the conventional loan. Also, some lenders usually like to see a property rented for at least a year. Make sure your paperwork and financials are good as well. I would start getting in the habit of having separate accounts for collection.

No problem. Many will give free consultations. So can benefit from that and shop around for prices to achieve your goal.

 Again, I suggest talking to a attorney. They each have the preferences but if you explain to them exactly what you are looking for in terms of protection they can suggest something that suites you.

As for the questions.

1. When do you get insurance? After the accident or before? The sooner you get it done before anything can happen is better.

2. There are a few ways. The big one I would think is commingling funds or using your LLC account for personal uses. This is why I would suggest getting a umbrella policy for the unforeseen. Definitely do some searches on here or the internet.

3. Yes, just depends on how you choose to handle the tax. Can find many articles on here or the internet.

4. I have no experience on series LLCs. I know they can be beneficial for certain things. Again here or you-tube or internet could be good avenues to look.

5. If you do not transfer and just use a LLC, it will be a commercial loan. Commercial will mean high rates than if you guaranteed it yourself through traditional means.

Your property management should be on top of this. I would consult with them to make sure what needs to be done is happening. If they do not know(Which they should), I would suggest consulting with a eviction lawyer. Action needs to be taken now. Better to be proactive than wait for answers. 

Also, from quick research the extension for Minnesota is until September 11th. 

*I would still take the actions I said above.