All Forum Posts by: Account Closed

Hello Anthony Gonzalez , welcome to BP. I can empathize with your desires to build speaking and writing skills. My recommendation is to join toastmasters and other speech-related groups and read a lot of books. It'll help improve vocabulary, structure, and style. -Kysha

Welcome to BP!

Steve Snyder thanks for the clarification. What cities and states are you and your clients finding these types of property deals? I see you're based in Los Angeles and it's hard to understand finding properties for your stated prices in Southern California. Thanks for your help!

Hi Michael, My aunt has two houses in low income areas of Mobile, AL that we want to sell. Do you know any investors who might be interested in buying low income homes?

Hello Wendy, Congrats on your meet-up success! How can one be notified of your future meet ups in LA?

I'm a little confused.. Are you finding properties in Los Angeles for $142K? If so, please share which area.

Hello Greg Foster , My boyfriend Brandon Foster is a commercial RE agent for a CRE firm that's located in downtown LA. They work with everything from raw land to retail properties; he's tagged in this post if you'd like to connect with him. Hope this helps!

Also check with larger Californian and national banks too. Banks will make loans out of state as well. Due diligence and preparation is key. Commercial lenders want to see cash flow, experience, low debt levels and liquid assets. It will help if you can provide W-2s and stable income streams as well. If you have an accountant, ask him/her to prepare a financial packet for you that includes three years of P&Ls, balance sheets, liquidity statements and anything else that proves your financial stability.

Hello Keith, If you're purchasing an investment property and hoping to get additional financing after quitting your job, you have to prove your ability to repay the loan. For most traditional banks, they'll want to see 3 years of tax returns, personal financial statements, P&Ls, and additional support (such as marketable investments, collateral, and/or liquid funds) that will show that you're able to support your responsibilities and repay all debt, but specifically theirs. If you purchase turnkey rentals, then you can show rent rolls as additional income support but I don't think you can account for rental income on tax returns for your first 2 years (double check with an accountant). I'd take the following steps before quitting the job to maximize the possibility of getting traditional funding: 1. Minimize your total debt as much as possible. 2. Minimize recurring expenses as much as possible 3. Save as much cash as possible Because the bank will be comparing your assets to Debts (net worth) and then calculating your post-expenses income to debt ratio (Debt service coverage ratio). If your small business is very young, you should keep your W-2 job until the small business can maintain a positive growth and income trend for at least 2-3 years. By that time, you'll have a couple years under your belt to prove to lenders that you have experience investing in RE, you have reportable rental income to support your expenses, and that your small business is not a liability. Let me know if you have any additional questions.

There are a lot of risks that come with a clouded title. You should consult with an RE attorney if you decide to take this process one step further. I'd recommend walking away until the title becomes clear.