All Forum Posts by: Matthew McNeil

As @Tom Gimer wrote, they are not the same party.  A simplified sample;

Joe and Jane Smith, husband and wife, as Grantors, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, do hereby grant, bargain, and convey unto XYZ LLC, a two member (state) limited liability company owned and controlled by Joe and Jane Smith, whose address of record is xxxxx, as Grantee, and to Grantee's successors and assigns forever, any and all property interests owned or possessed in that certain property located at xxxxx which is more particularly described as follows:

A VA to do what specifically regarding REI?

Probably not. He's a smart guy. I can't see him saying that. ;)

I've lived in SE Asia for many years and I've also considered buying. But here's the problem; there's always a significant degree of separation between you as a foreigner and the law you'd expect to protect you on a level of US law in the event there's a problem. 

Honestly, I think the answer to your question can be somewhat subjective.  On paper, each of your line item points is great and you're certainly trying to be thorough as you lay out what you plan to offer. "Subjective" being that the weakness of any PM, regardless of what's offered, is always going to be the tenant.  Additionally, this is what I've experienced; the quality and efficiency of the PM's management will invariably be in direct proportion to how many properties are being managed.  You're a PM managing 50 properties and all of your clients are thrilled with your management.  Grow that to 300+ properties and you've reached a point of critical mass where the level of quality if sacrificed simply because the same level of efficiency at a small scale is very difficult if not possible with increased volume. 

 Interesting. Was not aware of the 506(b) exemption. Another nugget to add to my collection. Thanks.

For not having any RE education I congratulate you and your wife for acquiring the portfolio you currently have. Well done!

I'd be curious to know what your return is at $5-6k per month.  Obviously, you don't have $1M into the property.  You wrote that you have no loans on your portfolio. I'm guessing here; if you've invested $500k then you're getting between 12-14% (at $6k cashflow), which is good.

My advice would be not to consolidate, primarily because you have a lot of equity in your portfolio which you can easily use for leverage to purchase additional properties.  Best route would be to pursue the cash-out REFI option as @Jerry Padilla wrote. 

I'd recommend that you study up on healthy LTV (loan to value) and come up with a percentage that you feel comfortable at. You're currently at zero. Most RE investors are happy at 80%. Personally, I'm between 30-50% with my properties. Also, since you're worth $1M, I'd advise that you study up on Asset Protection and make sure you're protected.

It true!  You can't get a loan for an investment property unless you own a home. But wait a minute, I've bought several and I don't own a primary home because I buy long distance from overseas where my wife and I direct a large international service project.  Imagine that!  I don't own a primary and I live overseas and therefore I must be disqualified.  Sorry to sound facetious. Just wanted to have a laugh. Find another lender!

I'd focus on building or at least identifying your team first, and I agree with @John Underwood with an added thought.  Before I ever consider buying another asset I always check with a PM first in order to ask what asset is paying the best rent and where.  Then I compare that with my initial numbers to see how close I can hit the sweet spot they've described.  

And, I ALWAYS use a real estate agent who also owns rental properties because he or she is going to be much better positioned to know what you need.  For example, an agent lacking their own portfolio is going to hype a house with a large beautiful back yard with awesome landscaping not knowing that a renter doesn't want to spend an hour mowing the yard, and will certainly neglect all the beautifully arranged tiered flower pots resting comfortably next to the 14 foot arbor adjacent to the small pond near the back fence.  Your agent needs to be on the same page as you because they'll steer you away from what you think is the perfect rental investment.  They know, based on experience, that isn't perfect for reasons they'll explain to you.  

Same with a CPA. Find one that has clients who own investment properties. Don't pay a CPA who's going send you a bill for their education if they don't have REI clients. Its not about someone preparing your taxes. Its about building a team of people who are going to offer you advice with every investment you make BEFORE you pull the trigger.

 Happy wife.  Happy life!  Glad she came up with the idea to invest in RE!!  Sounds like you're a very supportive husband.