All Forum Posts by: Max Ferguson

That is a bit excessive. Definitely deduct cost to repair drywall/door, junk removal and however much you see fit for cleaning. As already stated above, document everything just in case but I don't see how they could expect the full deposit back, if any. Itemize everything out for them if necessary. Good luck, let us know how it goes!

So HELOC is acting as only Lein on the property? No initial mortgage? Should be good in all regards then. Title company will clear up any questions if you give them a ring though!

 This was my first thought. Check Heloc's first. If that does not work for some reason, you have all of the equity, you could look for another investor who has the capital and work a deal to return an interest or profit percentage back to them. If it only needs minimal funding a personal loan or 0% Interest credit card are other ways for short a quick funding. 

Just remember, the market is pretty stagnant right now. It is crucial to talk to professionals in the area to see if the property is even worth the "value-add". Sometimes it is better to just sell the property as it sits and let the next owner update it how they would like. Let us know how it goes! 

We have very similar positions. I teach tennis on the side as a "cushion" of sorts. My last year has been focusing on my scaling of my agent business and scaling down instruction (huge opportunity cost). The networking tennis instruction provides is something I have a hard time giving up though! I have taught Bill Gates, the Buffet Family, previous president's families, etc.. 

With that being said the extra job has saved me a couple of times when finances were thin, but would it be too hard to scale the agent business? Understandable if you don't like it and want to switch, but during slow times the agents that put their foot down will do very well in the next bull cycle of the market. If you can make it through this slow time, being an agent will be highly profitable for you if you nurture your business. 

If being an agent isn't something you can do, I would say go for something fulfilling that covers the mortgage(s) and go from there. That's the nice part about RE, you can play the game however you want. 

My goal for this year for investments is 3-4 more doors, hopefully more. Agent wise I would hope to help buy/sell at least $5-7 Million in properties. 

For change, I am looking to automate and organize my business. My time went from being worth nothing to having real value, and I am finding the pain of opportunity cost to be pretty harsh. 

I've learned a ton! A lot of handyman work haha, renovating my duplex has been a wild ride. Also, Followup is key for any lead! 

You would want two separate LLC's, limits what each entity can be sued for. Easier to keep track of everything by keeping separate also. Every Investor I know and the large multifamily acquisition firm I worked for put each property into a separate LLC. Since I'm not a tax expert, there may be some loophole that makes the Single LLC more viable but that is a question for a CPA. Let us know what you figure out, good luck!

I believe the HELOC loan is going to be your best option. Unless there is another loan product I think this would be the most streamlined and easiest for you.

I would say your first move would be to talk to an experienced investor or investor agent. There are a plethora of people out there, so take a look around your area. Facebook/meetup groups/Biggerpockets all great ways to connect. They will be able to highlight the pros and cons of DSCR, Hard Money, Private money, seller finance, etc.. Another option is to get a cosigner with good w2 income if you need to stick to conventional. If there is anyone you trust enough to go this route, it might work.

Good luck and keep us updated, I am in the same situation currently and looking at creative financing options. 

Loren is completely correct. Unless you are putting down a huge sum, the cash flow is going to be thin or negative. At that point the down payment money would do better in a different investment. I am not familiar with the market so I won't speak on numbers, but unless a fluke of appreciation happens I think this would be a pretty bad deal for the next 5-10 years. 

If there is nothing major broken, don't waste your time. A lot of things can be considered wear items which you can't charge for. If they are nice, pay rent on time, and don't give you a headache I would just return the full deposit. 

It is also really hard to define how much they would owe you since you accepted the condition of the property on the day of close. Did you take pictures during the final walkthrough? Was anything majorly damaged from that point on?