All Forum Posts by: Michael Henry

@Carlotta Hall Because you have the cash in head your options are endless. Do you want to purchase another rental property or do you want to try to increase your cash on hand by doing a fix & flip? 

Banks only do rental loans. They will not finance a fix & Flip so you would need to find a hard money lender, private money, or partner. 

If you purchase another rental property banks will finance you 75% to 80% of the purchase price. How much you qualify for will depend on a few different factors but mainly two: if you are purchasing under a  commercial loan or under a consumer loan. Each one has different requirements. 

Don't hesitate to inbox if you have more questions. 

@BJ Marshall. I believe it depends on the location where you will be buying the property. If you are thinking low-end probably not I would wait but if I find a deal in a good neighborhood and good school district I buy it. I right now, at least where I live, the market is hot so it might be hard to find something worth wild anyway. 

What was your conclusion on Wisconsin? And Why?   

@Jonathan Roach. Two words: Property Management. 80% of your success will come from the property manager you hire. The other 20% will come from finding the right deal. The higher-ends properties will manage better than the lower-end property; which will take more management expertise and a history of managing these kinds of assets. I located in Southeastern Wisconsin. What city do you plan on purchasing in? 

@Nick Dunbar First, is the work done currently? If it is, you have to understand your risk. Worse case is that the city can ask you to open up the walls but most municipalities are not that harsh. The best case is nothing happenings and in the middle, you pull the permit, you get a cool inspector and the permit gets closed. But it boils down to peace of mind. If you are not going to be able to sleep at night over it then you need to negotiate to have the permit closed out be for you close. If it is not a big deal to you (I'm guessing it is not because you made the post) try to negotiate a lower price and don't worry about it. 

I hope this helps. 

Hi @Ryan H. Will you even qualify with having that IRS lien? If so, you will probaby get the best terms and rate by pulling the equity out of your primary home, you can go up 90% LTV. I believe rate and term, and cash-out or interchangeable. I think you mean cash-out refinance or Home Equity Line Of Credit (HELOC). The cash-out refinance you will pay your principal and interest (P&I) right away, so it is best to know what you are doing with the cash. On the other hand, the HELOC is interest-only payments on the principal that you withdraw. The interest rate can vary. After 5 years the principal balance is amortized over five years. This opinion makes the most sense when you don't know what you will be doing with the cash or you want better cash flow during that 5-year period.

The amount you will take out depends on much you need and how much the bank (credit union) will give you. It sounds like your goal should be to increase your cash flow. 

I hope this helps. 

His tax consequence will be determined by how the deal is structured. A loan is taxed as normal income and JV will be taxed as a capital gain. How do you plan on repaying him?

Being financially free (retired) means that you don't have to be at any particular place at any particular time unless you want to. Real Estate can help you achieve that if done correctly. 

Nevertheless, you have come to the right place.  There is a lot of good and bad information out there. This community will help you weed thought the bad. Don't hesitate to ask a lot of questions big or small. 

@Arsalan Augend I’m not familiar with northern Chicago but I like to think I know what I’m going when it comes to the Milwaukee Market.

Feel free to reach out to me at any time.



Feel free to inbox me your contact information.