All Forum Posts by: Nicolas Ake

My 50/50 partner and I intend to use one of his properties as a HELOC for a downpayment on a hard money loan. Should we transfer the property into the LLC and then open the account/HELOC? My current understanding is the best practice is to keep business/personal finances separate.Does anyone have any advice?

Thank you

@Guifre Mora

Yes sir, I'll speak to a CPA. Thank you for the advice.

Hello,

Is it common for the investor to be responsible for physically transporting supplies such as carpet and flooring to the job site or will a good GC do this?

If it is going to be my responsibility more often than not, would I be able to write off a new truck as a business expense? Even if I used this truck to commute to my other job?

Thank you

@Mike M. Wow thank you. Looks like I have more research to do.

@Jaron Walling I feel your pain. The sooner you start saving/ stop unnecessary spending the better. I also found myself eager to start and realized I had a downpayment, but if used that would have no reserves!

Ignorance is bliss, Rich dad poor dad atleast woke me up. Its frustrating to wait, but better to build a solid foundation to build upon than to rush into a bad deal.

Good luck!

@Mike M.

Thank you Mike. How would you go about using this strategy when the owner has a decent chunk of equity?

Can someone please explain how subject to works when someone still owes most of their mortgage? 

It seems that any cashflow would have to go to paying the original owner to incentivize them? So let's say $124 a month for 41 years to pay them $65,500? And that 0% interest (original price of house). All while I'm repaying the actual mortgage for 30 years? Am I completely wrong in my understanding of how this would work theoretically? Do you pay the the full price or just on their equity?

Are you able to refinance a subject to deal to put cash on another deal?

(original owner benefits from cashflow from deal one, while I get to use the equity and get the property in the end?) 

I'm having trouble understanding. Please help me clarify. 

Thank you!

Hello,

I am looking at a 3 bed 2 bath built in the late 90s. It's on a street of pretty much identical 3 2's built the same year. These houses are priced at $80-$90k. The one I'm looking at is a foreclosure for sale for $50k. I'm thinking about doing a live-in flip/brrrr. My only worry is that literally around the corner are $17k houses (2 bed 1 bath 1920). It appears that this block is an island or nicer houses in the middle of a not so great neighborhood. It's not a warzone but just a lot of foreclosures/vacant/old houses. 

Would this nicer house be able to get the rent that the house calls for? Or will the neighborhood likely drag it down? Will I be able to get a decent tenant? I know the first rule is location location location, but what happens when there's neighborhoods with houses that go from $15k to $50k to $100k all on one block?

Thank you

@Tamara Deering 

Thanks for the in-depth response. I will definitely look more into it. I believe I would succeed and it's exciting to not have a hard ceiling on potential income (also scary to not have a minimum income lol). 

Do you get a W-2 if you work for a broker or is that still 1099? Would a agent who has a year or 2 of established success have a hard time refinancing investments if they aren't W-2?

Also, would you have a chance at success as an agent if you had a part time job (25 hours a week to maintain benefits/pension?) 

Good to know, thank you!