All Forum Posts by: Moises R Cosme

You are welcome; I am glad I could assist. 

DeAndre, 

1. You can buy the house all in cash BUT you shouldn't (I will tell you why at the end of my reply)

2. After you close on the purchase, you can borrow against the property from a local bank for the renovation

3. Once you finish the renovations, you will then need to go back to the bank to get a loan based on the new value of the property to get all of your money out

BRRR should follow these steps: (a) purchase the property, (b) renovate the property, (c) refinance the property and get as much of your cash out as possible (the last step typically requires that you have owned the property for at least 6 months.

You should borrow all of the money for the purchase & the renovations in order to get benefit of paying off an all interest loan.  I hope this helps!!!  If you have more questions, message me & I will do my best to help.   

You are killin' it Bo!!! 

Outstanding!!!  Congrats!!!

Jeremy, 

1. Value, is the number 1 thing to know when you are dealing with an investor.  Know what the property is worth 'as is' and what it will be worth after repairs.

2. Finding me deals...  I will gladly pay commissions to any Agent that finds me deals.  

In my experience hard money lenders insist on being in first position, I have never seen a hard money lender do anything any different.  

I recommend using a Broker, they will have access to more products and will walk you through the particulars of the process.  Residential financing has a lot of complexity, you cannot grasp complexity without the experience associated with doing transactions repeatedly.  

Awesome step into the industry!!!  

Conan, 

1. Every Buyer that shows up on the P&S will need to get approved for the mortgage on the property

2. Ownership of the property is based on the parties to the contract

I hope this answers your question.  If you are all contributing cash to make the purchase all cash, then all you need to do is assign value to the contributions and you deed the interests in the property accordingly.  You could also purchase in a corp and assign value of the property through the shares in the corp.  

Talk to an Attorney, the above is based on how I have structured transactions in the past as an Agent; I am NOT an Attorney. 

I am not an attorney, but based on my knowledge 'Piercing the Corporate Veil' is a formal finding after a civil or criminal case has been adjudicated.  

Here is I think:

1. Separate accounts, separate debits cards etc.

2. Figure out the money mistakes and account for them; you can take them as a draw or 1099MISC, but you have to account for the money and report it out on your financial statements and your taxes

3. Create good systems to keep everything separate

4. I work with an excellent bookkeeper, she is remote & she has been keeping my books for years... Makes my life really simple.  She charges me $150/month and saves me more than that when it comes to CPA fees at tax time.  

I hope this helps!!!  If you want contact information for my bookkeeper, feel free to message me.