All Forum Posts by: JM Payne

Glad I could help.  Also, when I meant ownership structure, I meant does he own them personally, in an entity/trust/etc?  That will help.  Honestly the easiest thing to do would probably to get clear with him about what works for you and see if you guys can come to a structure that works for both of you.  If so, then I'd consult a tax accountant and attorney about how to structure a transfer in the cheapest way possible.  Someone will likely pay something, but hopefully it'll be the tenants, ultimately.

You cannot assume that the buyer is intending the same 60k of upgrades.  She may be intending 5k of paint and then flip.  If it is such a great deal, then go find another buyer that believes in your numbers.  Curious...how far is the spread?  Have you flipped a house before?  

You're better off with a RE investor-focused tax professional.  They will be able to do more for you, and can often set up the same legal entities that an attorney would.

It doesn't really matter who buys it, but you will definitely want to check zoning and see if it is a legal use.

You don't have to sell to house hack, you would just have to rent out the first one or use it for something other than your primary residence, but I do understand that you are where you want to be and that is fine.  There are other ways to make money.  Good luck to you!

'70 will come with an asbestos pamphlet.  For my own piece of mind and that of my contractors, I would have an asbestos evaluation done if the rehab was likely to disturb any, IE tearing up floor tiles, siding or shingles, but I'd be weary of hiring anyone that also does asbestos remediation as they are likely to overstate/upsell.  Still wouldn't bother with the meth.

Are you here to be successful, or to replace your restaurant income?  If you're here to be successful, then your hours are whatever it takes, 24/7 365 baby!  You have to hustle!!!  As far as agencies, seek out the best agents in whatever path you intend to take and go work with them.  If you want to be an investor, seek out investor-centric agents.  If you want to rep buyers, find the best buyer's agent. 

Seek whatever you need now, knowing that the desire to quit being an employee is going to come back and you will then start your own company and be your own boss.  Now go out and kill it.  Set lofty goals, swing for the fences, and always keep hustling. Congrats on your license and your BP membership.  You're going to do great things.

- JM  

Jump in, both feet first, and enjoy the ride.  The truth is that nobody knows what the market is going to do, and we're all still here to invest.  If you base your life on the news [read:propaganda machine,] you will forever be standing on the curb watching the cars go by.  You'll find no better place than here and your local networks to find coaches and mentors that will help safeguard you from a recession, as long as you are patient and take the time to learn.  Best of luck with whatever you choose!

- JM

Sorry to hear about your dad, but the rest of your story was enjoyable.

As to whether or not you could get a loan, do you have any steady job now that you're "ready to make a change?"  Your best bet is with a portfolio lender, as their lending requirements are more lenient, preferably someone you know or have a relationship with long term. 

Yes, people buy wholesale deals but, as a newbie, you are likely not capable of finding and negotiating a deal that would be sellable.  Nothing personal, it just takes experience and knowledge about a lot of different cogs to make the puzzle work and sell a wholesale deal.  You're better off bird-dogging and/or interning.  If you DON'T have a steady job, this might be a good place to look.

Yes, you can get off the couch (or out of your van) and be successful.

Yes, rates differ between institutional lenders, private money and hard money.

Regarding advice, get a job, network with bankers and get pre-qualified.  If you have $12k saved up, you're already on a roll.  In some markets, you can buy a house for $12k, so maybe drive to one of those markets before you find a job.  I didn't include the $50k in your numbers because I am a firm believer of the Millionaire Next Door philosophy which, if you are familiar, basically states that that is money for which you did not work and therefor are statistically likely to lose.

Also, you can live your lifestyle forever...we're currently living in a 35' bus and flipping houses full time.  Happy to connect and talk further, I hope that helps.

- JM

Solid plan, but wrong area.  I realize that living beach-front is attractive, but the bank isn't going to consider AirBNB income, they are only going to look at your financials and tax returns.  I would look someplace cheaper that you can actually afford, and then use AirBNB to pay it off for you.

Another advantage to this is that, at least in my local market, the vacancy rate is a lot lower on cheaper units which often makes up for the discount in rates, and you'll be able to pay something cheaper down faster so that you can rinse and repeat to 8 doors in two more years.  

Whatever you choose, I wish you luck and hope that helps at least a little!
- JM