All Forum Posts by: Jon Schoeller

@Bryan Richardson I believe you meant to tag the OP as I didn't have the original question. No biggie. 

This will depend on the agreement of the sale. Typically the seller doesn't have the money to cover these expenses (hence why they are selling) therefore they will be passed onto the buyer after the sell. You will need to just add that on top of whatever you are paying for the house itself. I definitely wouldn't trust the seller to pay the lien off after the fact. 

Example: They are selling you the house for 50k. The actual price to your buyer is going to be 55k to get the house free and clear. So you will need to sell it to your buyer for over 105k to make a profit on your end and for the buyer to get a free and clear property. Hope that makes sense. 

Hello Mike! Can you give us more information? What do you intend to do with the HELOC? How much equity do you have in your home? How much experience do you have with whatever you are planning on leveraging this HELOC for? That will help us answer your question.

If the tenant can prove he/she purchased the appliances they are theirs to keep. If they can't then you probably need proof from whomever you purchased the property from that the appliances were already in place and working before the tenant originally moved in. This sounds like one of those occasions where it might be more trouble than it's worth. If you truly think they are yours to keep then simply keep their security deposit when they move out and put that towards the purchase of new appliances. Hope that helps. 

Hello Mizael. This is easy. Simply don't list your current house for rent until you have found your new place and have a closing date. It seems like you have a lot of interest in your current home from potential renters so vacancy shouldn't be an issue. Find your next houses first. Get a closing date. Then list your house up for rent and available about 1 week after your new house closes. This gives you time to move out and clean it. 

Pros and cons. You would decease the number of tenants you need to manage but increase the amount of leverage each tenant has on your vacancy rate. If rents are exactly the same that wont matter as much. The point of having 4 over 2 should be that you a net a higher cash flow when all 4 are rented vs just the 2. 

Hard money is fine. But please remember that they don't call it hard money for nothing. I would exhaust asking all friends and family first as private is almost always easier to work with. Especially for your first investment. With that being said, plenty of people use hard money on their first deal. Just make sure you have a done all of your due diligence and you're supremely confident in your numbers before proceeding. 

Hello Bob. 2 to 2.5% without restrictions is probably going to be some of the best out there. Like you said, you can get higher but then you have rules. 2% should allow you to keep up with inflation at the very least. 

Hello Anthony! Yes, anything over 4 units is considered commercial. Unless your state has some special rule that I am not familiar with you would need a commercial loan. 

There are so many ways to go about this. I will give a a few that I like. 

Start by wholesaling. This allows you to learn the game without a ton of capital. If you are good at it you will be able to build capital rather quickly and move forward with your money to do the flips yourself. 

Partner up. Find someone with the money. You bring the deal/time/labor/ or whatever they may be lacking. Split the deal more favorably to them at first. Build credibility with each other. Flip a few deals. If you like working with each other, continue the partnership. If not, then move on with your newly acquired capital and do your own thing or partner with someone else. 

Hope this helps. Good luck.