All Forum Posts by: Jacob Thompson

If I am creating an LLC to purchase real estate, rent, buy, sell, etc. through should I request the aid of an attorney in setting up the entity or not?

@Frank Procopio

I understand. I‘ll be 27 in January and I’m hoping by the time I’m your age I’m doing alright for myself.

I do alright now with my FT but like I said, I’m looking for financial freedom. 👍

@Frank Procopio

My goal, as of now is to use the BRRRR method. I'm also not opposed to flipping in the right situation.

When you have cash flow do you think it is more affective to put that towards the principal to get your properties paid off faster or do you collect and put it towards another investment or do you consider it income and live on it?

Evening all,

I am completely new to the game of REI. I have aspirations of quitting my day job one day and living off my investments, hopefully riding into retirement one day from it.

My question to you today is what is the strategy or process most REI go after in order to achieve their early retirement/financial freedom from working their 9-5?

Thanks in advance!

@Bonnie Low

I’m sorry, I don’t know what a balloon payment is? How does that work with paying off the loan after refi? Is it 2 lump sums or...?

@Gino Volta

Gino, Merry Christmas brother.

I’m glad to hear you guys are being successful on your new journey!

I hope to do the same and break in soon, there are a lot of moving parts getting started and I want to make sure my ducks are in a line.

Best of luck to you and your wife my friend!

@Bonnie Low

Thank you for the information Bonnie and Merry Christmas!

The way I understand it is that HML are more flexible than institutional banks, but typically have higher interest rates and expect a monthly payment while you rehab and expect full payoff after you refinance with an institutional bank.

A PML could essentially be anybody that has money and are willing to take a chance with you. The agreement is made between the two of you compared to a more structured contract as with a bank or HML.

Either way, your lender will front you the money to get you into the property you are trying to purchase, you just have to do your part and pay them off after refinancing.

@Kenneth Garrett

Kenneth, thank you for your help today sir. I may refer back to this and seek you out if I have any further questions.

Have a Merry Christmas my friend.

@Kenneth Garrett

Is there any reason a bank would not let you refinance once you’ve renovated? Also, do they take care of paying off your PML or do you take care of that?

@Kenneth Garrett

Ok. So the way I would look at that is you’re still paying off the difference from your remod. And you stated that you had a $400 cash flow within 12 months on that particular property so in theory, your tenant is the one who paid off your remainder of the $5,000.

So really, as long as a person were to invest money into whatever property they purchase, when they refinance they should always have the money back to pay off their PML?

Are there times when a bank won’t give you refinance in the property even after you’ve renovated?

By the way, thank you for your patience today and answering all my questions I know I have laid it on thick today.