All Forum Posts by: Kyle McCorkel

Lance Robinson Excellent job providing the returns and thank you so much for transparently sharing your experience. Your returns look outstanding!

Wave Taylor I’m in the process of converting oil to gas and it will cost about $800 from the gas company to install the line and new meter, plus another $3300 for labor and materials for a new furnace and plumbing. So, figure $4k to $5k.

@Jim Sestito

Nope, did not add insulation, and yes it’s a very old house. Same as Charlie, we don’t have to tear any drywall out so we aren’t going to mess with it.

Travis Wylie I PM’ed you a guy who should help. But I’m curious to see if any others in the Harrisburg / Central PA area have any other names.

So this is the first year that I think I might have a shot at reaching the coveted "RE professional" tax status.  My accountant advised me to start tracking my hours, both in my "real job" and in my RE business in 2018 (which I need to start doing, now).  My question is: how detailed do I need to track my hours? I would like to be as broad as possible in order to not give more detail than necessary to the tax man.

For example, today I talked to the title company for 30 minutes about a property I have under contract.  I would probably just log that as 30 minutes in "Acquisition".  

Can anybody share your categories that you use in your personal tracking?

Kyle Beauchamp Ask around BP for some investor friendly local lenders. Especially ones that do portfolio loans. I’ve had lenders pull the “source the funds” card on me which was a pain when using funds from multiple sources (private loan, HELOCs from different banks). But all I did was gather all those statements and I was good to go, it definitely wasn’t a deal breaker.

Jim Sestito I am literally just now working through this in PA. I just got a quote for about $3500, labor and materials, to remove the old oil furnace and install the new gas furnace. Sounds like you already have the gas service, so that will cut out significant lead time. It’s going to cost me another $775 for the gas company to connect to the line in the street and install a meter. And that will take them 6-8 weeks...smh. Interesting side note...the oil furnace in this property is over 50 years old!!!

Derrick Casson They will lend you 70% to 80% of the new appraised value. Also referred to as ARV - After Repair Value. So 70% of a $300k property would be $210k.

Nick Hundertmark Congrats on that first deal! You did more on that first one than most people do...with a partner, LLC, private loan, etc. Good luck in Philly.

If they are private lenders then you will need to decide on some terms. Interest only payments with balloon payment after 12 months, no prepayment penalty, etc. are some examples of terms. Then you will need to decide if it is a secured loan or unsecured loan. Secured means you will be using the property as collateral (if you don’t pay then the lender can take the property). This will require more paperwork and most likely an attorney (I think). Unsecured basically means you are more or less giving your word that you will pay them back. Typically unsecured comes with a higher interest rate to make up for the additional risk to the lender. For the loan itself, google “private note templates” and that will give you a good starting point. If it is secured, there will be an additional document (I think this will be called a mortgage) stating that there is a lien against the property. Private, unsecured loans are much easier to do (in my experience) as you pretty much need to sign the note, get the check, and then start making the monthly payments to the lender.