All Forum Posts by: Jeremy Kuchenbecker

Not a CPA** An S Corp is only beneficial if you actively participate in real estate, something around +500 hrs/yr. Unless your primary line of work is in real estate, you don't have many other options to limit your tax burden from an entity standpoint. I would set up a trust and take ownership of the trust in an LLC. Trust to provide anonymity and an LLC for liability, otherwise in my opinion a good umbrella policy would do the trick.

@Ethan Perry If your only goal is cash flow then stay in the C, D, and F areas. Higher risk and higher reward but way more (disproportional to the return IMO) headache. Every city and region has its own characteristics but if you can stay around the C+ to B/B- properties you can generally find decent tenants and newer(ish) properties. If you hit 1% price/rent then great, but take into account the risk of having poor tenants, or at least a poor tenant pool, and the possibility of increased repairs. 

Make sure you know you made money when you buy the deal.

@Tynessa Franks I was very happy the deal and the tenants have been consistent which is always a concern buying an occupied property. Having said that 4 months is a short time to get see the overall change in the market but to add on what Andrew said above prices are increasing in the area and rents are getting pushed up as well.

In my opinion with the closure of the loop linking the 429 on the north side, the new hospital, and the growth of altamonte springs into the apopka area bode really well for the future. Also Apopka from what I've seen offers great price to rent ratios that are becoming really hard to find in the Orlando area right now.

Were you financing a duplex? 1 Unit can go to 75% but 2-4 can only go to 70% LTV however you do get to roll in closing costs =)

Thanks @Jackelyn Gonzalez , I had two quotes around 12% and 3 points up-front. Not sure on the prepayment charge because as soon as I heard those numbers I was out. I ended up doing a HELOC on my primary residence and used my own funds to get the deal. Definitely got a quick crash course in hard money, bridge loans, and private money that will be useful down the road.

I'm not the forum police. You can go one of two routes: 1) close in a trust with your LLC as the beneficiary. The trust gives you anonymity and the LLC gives you liability protection

2) close in your name and look at purchasing an umbrella policy. 

Some people want LLCs because it makes them sound official. They have yearly fees and have limited/more costly options with insurance and can still be pierced. Luckily I havent had to find out which is "better". * Not an attorney

I'm in Florida but your best bet would be to always contact a title/closing agency. A title transfer is generally all that NEEDS to be done (quit claim deed) but you should check to make sure he has clear title even though he has it in hand, no liens etc, make sure the title is recorded properly, and get a title insurance policy. If you look at your previous HUDs or CD from your SFH there's not much of a difference whether the owner has title in hand. Every state is different but never take someone's word for anything in real estate it could cost you down the road, verify verify verify.

@Federico L. Hey man glad you found BiggerPockets, I've been on here for a couple of years and can't put a number on the amount of value this site and everyone on it has given me. I'd actually revise my original post about 'having some juice left' and say that Orlando, from looking at the population, job, and overall growth trends is really heating up. 

To find deals, I have used pretty much every mode possible with the exception of direct mail simply because I have a day job and direct mail is too time consuming. Up until about 6 months ago I have found good deals using Realtor.com/Turlia/Zillow and even with Loopnet I picked up one. Right now, unless your able to act extremely quickly, even properties listed on the MLS are very, very competitive.

I just went under contract on a duplex in Apopka. The way I found that was by getting in contact with every wholesaler possible, calling every "cash for properties'' sign, and checking their listings pretty much everyday. My advice is to be relentless with every medium possible, but going the wholesaler/off market route is what just worked for me recently.

Looking at a property where the seller wants a quick close - by Feb 28 (11 days). With no contract on the house he cant close anyway but I want my offer to be accepted and as clean as possible. 

Price: 160k Rent: 1,950/month 

I generally go through a portfolio lender but am unsure if they can close that quick. I've never used hard money but this may be my only option. I would expect to hold the hard money loan for under 30 days as I would look to refi it immediately after closing. Is this possible? and what would my carrying costs be using traditional LTV on a hard money loan (I'm not familiar with what that would be)? Also would there be any points or additional closing costs associate with the hard money loan? Thanks in advance!