All Forum Posts by: Jonathan Leblond

Hi BP, I need help to understand seasoning and find different options in our business model.

All right, what I understand is that seasoning is required when someone is buying a house with a conventional loan in order to make sure they have sufficient reserves, in order to pay for the acquisition, and that they are in the habit of saving and will continue so they will be able to pay the loan.

But, for an investor looking at a portfolio loan and running a business is it necessary? The way we operate is: We find a building, we tell our investors partners that we have a good deal. Then, they lend us the money for the cash down and we buy the building. They can transfer the money pretty fast, but they only need to transfer it when we are ready to buy not for 3 or 6 months before we want to buy... Is seasoning always required?

Thanks!

Hi, I've read a lot of old post but I can't make up my mind. So please, in today's economy, let me know what you think.

Here is my understanding, on a 30 years mortgage for a buy and hold (with light rehab) investor:

1. Portfolio loan has a higher interest rate (I've seen them starting at 4.5% up to 9%) compare to conventional (around 3.5%). If you switch faster to a portfolio loan and you want to grow faster, you will build a relationship faster and eventually get better rates and a better line of credit to close faster.

2. Conventional has a much better rate. Some say you should use all of them to save on your mortgage and only switch to a portfolio loan after that. If you do so, you won't build the relationship, but you will have more experience to show when it's time to switch to that kind of loan.

Thanks all for your thoughts

Nice work for the Montreal area! Prices are so high! Those numbers for the south shore! It's totally insane!!! ;) Keep the ball rolling!

A long time ago I went for the SF, tried to rehab... it took 9 years!!! If I could go back, the plex option would be my choice for sure. Capital region isn't that bad on COC return, depending where you want to stay, and I wouldn't focus on appreciation to start my business. At some point it will be an option, you may lean more on that side, but I would start with a cash flowing plex that will pay itself and bring cash when you move to the next one.

Good luck

Hi Omar, it is indeed very complicated and it took me a long time to figure it out. I spoke with many CPA until I understood enough to be able to challenge them and ask good questions. Then the right path for my needs was clear and I was able to set the proper entities. It is indeed important to set it right for tax, estate and liability. For a relatively reasonable cost https://madanca.com/ can answer all your questions and give you a clear path. Also https://www.uhyvictor.com/ and some other in Montreal I could provide if those are not sufficient.

@Steven Westmiller I understand but If you have the pro account, download the NY State specific template and it is a very good start. The thing is, every landlord will have a different opinion on how things should be done. Depending on how you want to manage your business, your location, your tenants, you may have to (or I should say you should have to) modify any form you will use to fit your needs. With time you will eventually change stuff after listening to a podcast or talking with other investors. Some of them have really good tricks to bullet proof your forms and help your business run smoothly. Creativity is not only on the financing and acquisition side, it's also on the managing one.

Hi, great for your purchase! I like the files prepared for each state by BP and those offered with No and Low money down. I think you should review them anyway and add or remove stuff that fit your strategy, thinking and the way you want to run you future business. I wouldn't pay for an attorney. I prefer to use what is avalaible and compare it to what other people are doing and modify it.

Hey Chelsea Kline. I used RentPrep for the first time yesterday and I really like the options. I usually use my management app screening option but it always requires the tenant to do something and sometimes it's impossible. 

With rentprep it was quick, simple and support was efficient when I needed them to refund an option that couldn't be used. They are a great option when applicants can not be involved in the process.

@John Bunka good. I finally used the rentprep website. They have a cool option that doesn't require the applicant to do anything.

Hi Dolores, did you get any answer? I need to do the same and would like to find a friendly/affordable website for tenant screening that I can insert the information that I have by myself.

Thanks