All Forum Posts by: Jonathan Holmes

Regret-Not starting when I was 20. Pearl of wisdom-budget your life, budget your deals, save every extra penny

Technically any change in ownership would be considered selling. The common way would be to use your states version of a quit claim deed into the LLC name. The down side of this is that any existing loan likely has a due on sale clause that can be triggered by this transfer. It will be up to the banks discretion as to whether this happens. Secondly, you will not be able to receive a mortgage on a residential property, from any major bank, while it is in an LLC. So unless you can find a small local bank that would plan on keeping the loan in house and doesn’t mind the LLC being listed as the owner you will have some trouble refinancing after the transfer.

There is definite money to be made if you can get it done at the right price! I do know one of the earlier podcasts had a man who solely does land investment. He talked about splitting lots and build on them a good deal if I remember correctly. I cannot remember the name or number though :/

This is a complicated process involving splitting the lot running utilities all kinds of zoning laws. This will all vary based on your county, state and local authorities. If you’re serious about it invest the money to sit down with a local real estate attorney for a consultation. Any other advice is going to be unreliable at best.

While you may be in a state that allows double representation it generally is not a good idea assuming you need representation. If you’re comfortable making all your own decisions then it may be and added bonus to your offer that you will allow the listing agent/owner to represent you. Theoretically agents are required to represent the interest of both buyer and seller equally in these situations but being that an agent doesn’t get paid unless they make the sale and the added fact that this agent is also the owner it would take a very special person to maintain appropriate ethics. My advice would be if you wouldn’t be comfortable buying a random property without an agent then you need to get your own agent in this circumstance.

I’d suggest start the education and see where it leads you. If you know the upsides the downsides, best and worst case scenarios yet still want to do it then you just might have found your niche.

It’s really no different than a SFH purchase. Most large lenders will do and FHA loan so I would just call a handful the rates should be fairly close. They will do a pre approval and then you are pretty much ready to start looking. The inspection isn’t a big deal basically if the home is not in need of an major rehab work it will be approved. If you’re interested ask you lender about a FHA renovation loan. They are a bit of a headache but it is the easiest way you will ever get a bank to finance a rehab. Once you have identified your potential property you need to look at the numbers closely. Living in a property allows you to fudge them a bit but if you push it to far then you may have issues cash flowing when you move out. Remember to calculate you maintenance, capex and vacancies into the cost. It will be best if your rental side cash flows with these items subtracted and there is enough balance left to make a good impact on the mortgage payment. That all depends on how you budget. I pay all the expenses of my duplex out of pocket and save all of the rent each month. Remember to keep a few thousand bucks in reserve. Good luck

I suspect the other bidder had a no clause cash offer. That would appeal to many people.

You need to ask why. I can’t really come up with an answer myself maybe this is common elsewhere. Would the cash be on the same contract as the other payments listed on the closing documents? Paid at closing? Do they mean a bank wire or a bag full of hundreds? The two would be very different legal speaking. If it is done separately from the sale the only reasons I can think of would be some kind of fraud. Maybe untaxed income.

Step one read the BP books on real estate investing and then the one on property management if you want to buy and hold. To be honest there are probably thousands of useful books out there but those two will open your eyes to the possibilities and the headaches. House hacking would be a good call for you being that you don’t currently own your own home. I would recommend buying the biggest you can. Fourplex, triplex or if it’s all you can find or afford a duplex. If you don’t have one create a budget. If you do have one subtract everything you can from it and save that money. Good luck