All Forum Posts by: Lawson Ott

an interesting idea that popped into my head has me wondering whether it is creative genius or technically criminal. so i am asking this community  (would be great if a real estate attorney could chime in) if anyone knows whether the law somehow would be against this, or if it is allowable.

the idea:
A) my LLC (of which i am the manager) gets a land contract on a house for less than $100 earnest money ($200/mo until $10k is paid)
B) since the property has an ARV of $40k, i personally get an FHA loan to buy it from the LLC
C) LLC pays off original owner and has $30k left to invest in new deals
D) i make my payments to FHA lender
E) eventually LLC makes enough to pay me high enough salary to then pay off mortgage

parts 2-10 of the question: if i have little to no cash to spend (might need 10% down for FHA loan [$4k]) can my LLC give me credit for the $4k (maybe for prior rents paid, or sweat equity repairs) and that count as my down payment within FHA standards? IF NOT, can i write a personal check for the $4k to bring to the closing table but the LLC does not cash it. or does the check have to be made out to the bank/lender for some reason? can it be a personal check or does it have to be a cashier's check?

not trying to scam. just wondering about working loopholes. i don't want to do anything illegal.

Thanks for all the warm welcomes! I'd like to connect too. Feel free to add/like/link/connect/friend me or whatever the colloquialism is for this site.

Sorry that intro doesn't flow quite right. Some moderator has an interesting view on what is advertising, I guess, and decided to cut out 2 paragraphs. So now my intro looks stupider than it was originally. Oh well, we run into all kind of people. Some are cool, others are not. That goes for mods, sellers and buyers, family, etc... Sorry for mentioning that I started a real estate business. I thought that was part of what this site is about.

I'm just going to assume it's an initiation annoyance. Or maybe the mod is like my 7th grade teacher who refused to give anyone 100% on any assignment no matter what. Even if the work was perfect, he'd claim there was a slight curl to the corner of the paper or something. -1%!
I forgive you Mr. McCarthy, and Mod Person.

Anyway, I'm glad to be here. And I look forward to interacting with you guys.

Hi! I am Lawson. I am new here, obviously.

I've been watching, reading, listening and learning from millionaires and billionaires over the past two years and it has changed the way I think about money and investing. 

I started out dirt poor and have been tired of it for decades. Last year I gave up on winning the lottery and/or waiting for my luck to change. It was time to pull myself up by the boot straps and get something going.

I went looking on youtube for the TV real estate guru on late nights (couldn't remember the name Carlton Sheets at the time) but wound up finding Ron Legrand. For 3 hours I was enraptured in the prospect of wholesaling with as little as $10 down.

Turns out, he was right! I acquired my first property with $25.00 and a land contract + $60 recording fees. Paying $175/mo for 5 years with no interest. That's $10k on a house with an ARV of $45k. I could flip it, putting in as little as $5k for a few minor issues, or max $10k to really knock it out of the park. But, for now, it's my primary residence as $175/mo is better than the $550/mo I was paying in an apartment.

I've browsed BP over the past year or so, just now decided to actually join. You all seem to be a nice group of folks. So, I figured I'd be part of the community.

I'm improving my personal credit now (coming from dirt poor it never seemed to be relevant) since now it is an important factor. +35 points YAY! I just got so sick of seeing all the deals I had to pass on for a lack of a few grand at hand. (Missed out on a ca$h cow: 6 rental units, renting at $300/mo each and the seller only wanted $20k, would have paid for itself in a year, then $1800 cash flow for life. hoping to find another one, once I have my stuff together.)

Anyhow, glad to meet you all!