All Forum Posts by: Jack Inman

@Ben Smith I'm in the process of doing a similar deal. I sat down with a closing attorney, and the advice I was given was to set up a two-member LLC with an operating agreement that lays out the terms.

My understanding is that you can get a conventional loan, but it will be a recourse loan. So, if the LLC was to default on the payments the bank could come after either of the members for the full amount of the loan regardless of the member's percentage of ownership.

I'd recommend talking to a lawyer.

Cash-for-keys would be a good place to start.

@Al D. Most property managers will clean up the house in a week or so after move-out. Houses do get dirty when they sit vacant for a while; people track dirt and leaves on the floors during showings, but it sounds like yours wasn't cleaned at all. Like Caleb said, that shouldn't be tolerated.

CB Properties is another management company that's worth checking out. They're the property management company associated with Memphis Turnkey Properties, but they'll manage most any property as long as it is not in a rougher area. If you're in Bartlett then you'd likely be accepted.  

Congrats on the Buy! Looks like you've got a loan amount of about 80% of the ARV. Have you found a lender that will give you 80% of ARV?

@Tyler Thompson Sounds like you're off to a good financial start! When you get your first rental property just make sure you aren't overpaying for it. If you pay too much on the front end you'll have a hard time realizing gains from both market appreciation and loan repayment.

@Patrick Menefee Generally speaking, the more work you can do yourself the better. If you can act as your own general contractor and hire laborers to do the individual tasks than you have the potential to save quite a bit of money. If that's not feasible, then having a written plan for the rehab is a good idea. The more detailed the better.

Usually contractors won't want to give you a free quote unless you own the property or at least have it under contract; if you've built a relationship with the contractor then that could change. Regardless, it's good to familiarize yourself with the cost of fixing the more common repairs so that you can have a rough estimate of what it should cost to renovate the house. 

@Alain Labrada I'd recommend paying her hourly. Maybe offer a bonus if the project goes really well. 

@Katie Pepin I've been using Asher Murray for a while, and I've been pleased with the thoroughness of his reports. His prices are reasonable too.

@Aaron Keener Commercial brokers are typically doing most of the larger multifamily properties. From what I've heard, commercial RE takes a lot of time to build up a client base. A good way to start may be to contact a local property management company and work for them as a leasing agent. That's a good way to make money while learning the more hands-on aspects of the business.