All Forum Posts by: James Zhang

I currently have a rental property under my name. However, I would like to have my LLC's name on my property management agreement. Obviously, the property manager requires a W-9 form for income reporting purpose. My question is should I put my personal SSN on the W-9 or the LLC's EIN number on there? I read on IRS website, that all single member LLC entities are considered as "Disregarded Entities". So everything will flow straight to the owner's C-schedule. I am confused on whether i should use my LLC's EIN in the W-9. Any advice is much appreciated!

Try Lendinghome.com.  They are a new FinTech company that specializes in Investment real estate lending.  They do both bridge loans and permanent financing.

 If I could get 70% of appraised value, that would be ideal. Do you know any lenders who is willing to lend at 70%?

All,

I was wondering if anyone could recommend a good mortgage lender who is willing to lend more than 65% of the appraised or purchase price for a triplex in Ohio.  

This would be a delayed financing.  I am purchasing the property using cash and would like to put debt on there as soon as I can.  The one lender I talked to could only lend up to 65% of the appraised value for a triplex. My ideal option would be 75% of the purchase price. To be honest, 65% of the appraised and 75% of purchase is similar, but the appraised value I am using is more or less a guesstimate at this point.

James

 The bank does lend an appraised value.  But apparently they are willing to lend on the county's assessment which means the borrower doesn't need to get an appraisal

All,

I came across an opportunity that has the following numbers.  I am trying to figure out if I should pull the trigger.

Neighborhood: C+/C

Asking Price: $40,000

Monthly Rent: $800

Last year's taxes was $851

Annual NOI: $5,229 (10% reserve, 8.33% vacancy, 10% management fee, $800 insurance)

So, everything looks good at this point.  There is one concern i have.  The county's tax assessment is $32,000 for the property.  I understand that i am paying for the cash flow so i shouldn't look at the assessment value.  Somehow, I am having trouble reconcile the number in my head.  Should I give too much weight on the county assessed price?

The reason this came up is because the bank i am working with only lends on the the lower of purchase price or county assessment, like most banks.  So i can only borrow 75% of $32k.  

This gets me an unlevered return of 13% and a leveraged return of 23%

Should I pull the trigger?

@Joseph Ball wow, that's a very detailed list.  Great stuff!

thanks for the warm welcome everyone!

@Ali Boone I actually read your Out-of-state Real Estate Investing 101 post.  It was very helpful.  Thanks

Hi Guys, 

A newbie from the NYC area.  I was very close to investing in the Dallas/Fort Worth market with a friend prior to finding the site.  I soon realized how naive my assumptions were in my cash flow models.  I realized that i need to educate myself.  This site is a great resource.

Given the fact that I live in NYC, my investing opportunity in my home market is pretty limited (not nearly enough saving for places within 1 hour of driving distance).  I have been pretty intrigued by the idea of turnkey properties.  However, after some preliminary research, it seems that the field is littered with traps.  Could anyone show a newbie where to start for turnkey properties?  

Also, I would love to get out and actually talk to RE investors, Realtors and Contractors.  Any tips on how i could go about doing that around this area while my investment tragets are not really in the area?

Hi Guys, 

A newbie from the NYC area.  I was very close to investing in the Dallas/Fort Worth market with a friend prior to finding the site.  I soon realized how naive my assumptions were in my cash flow models.  I realized that i need to educate myself.  This site is a great resource.

Given the fact that I live in NYC, my investing opportunity in my home market is pretty limited (not nearly enough saving for places within 1 hour of driving distance).  I have been pretty intrigued by the idea of turnkey properties.  However, after some preliminary research, it seems that the field is littered with traps.  Could anyone show a newbie where to start for turnkey properties?  

Also, I would love to get out and actually talk to RE investors, Realtors and Contractors.  Any tips on how i could go about doing that around this area while my investment tragets are not really in the area?