All Forum Posts by: Ray Hage

Condos are always a risk. You can't predict what the HOA fee will be next year, assessments and changes in rules. Unless the condo is extremely AND you can easily rent it out, I don't think it is worth taking the risk as a first investment. I bought a townhouse here in the Fort Lauderdale area. The HOA fee went from 275 when I bought it, the next year at 375 and then 450....and this year back down to 375. You can be sure I was not happy after two years of increases. So just be mentally and financially prepared.

The answer depends on how good you are at painting and how much free time you have. Last year, I painted my own house (1100 sq ft) and a rental (1400 sq ft). I hope to not do it again anytime soon lol. 

The materials cost sounds kind of high but the labor is not too crazy imo. If you got the money to spend and not a lot of time, I would probably let the guy do it but maybe bargain on the price a bit. 

@Sam Leon I would aim to finish it up with some handymen or a contractor. Doing all the work yourself doesn't make sense if you have a full time and other priorities. Get some estimates on what it would cost to finish up and of course, figure out how much the ARV will be to see if it is worth what the contractors are charging. I don't think it is worth trying to sell half done as you will have a limited pool of buyers.

Being scared of debt is like being scared of a hammer. With debt or a hammer...you can build something with it or you can break something. Just use the debt wisely and you'll be fine. 7% is high but if you get the right property that still makes money (or that you enjoy living in), you can always refinance. 

Always have some cash reserves. One thing you can guarantee is there will be some kind of emergency in your life. Money solves that problem.

Dave Ramsey says some things that make sense, but it is rare. 

Hey @Sarah Reece. I agree with the others, have your legal documents in place before lending. I also try to keep every loan under 6 months to flip that money faster. Some are even 2 months only. You'll need a promissory note, mortgage lien and maybe even a JV agreement on the deal. You may also want to ask them to cross-collateralize another property or give you a personal guarantee to further protect you. My advice, if your goal is to keep all your loans in WA state, then find a title company with a lawyer who is familiar with this.

 I have been private lending since last years on deals mainly in Orlando, FL area. I couldn't tell you anything about WA state in terms of legalities within RE. It is quite good here in Florida however to be a lender. I understand Texas is another great state to be a private lender though I haven't lent on any projects there. 

I think something small and easy like printing out something isn't a big deal. Since your tenant is also your neighbor....wouldn't you want to have a good relationship with your neighbor? Personally, I wouldn't mind it if someone asked...now if it was demanding and/or continuously asking for things, that's a different story and can be annoying whether neighbor or tenant. In this case, I don't see the harm in helping out a neighbor. 

I also have two neighbors/tenants and have asked for some help on things and have helped them out as well. I haven't seen any harm in it. 

@Randall Alan very well said, you explained the property tax very well. A couple of years ago, I transferred 2 properties from my personal to LLC name and got a large tax increase!

@Carlos C. If you are buying future properties, it is best to buy them under the LLC directly especially if you are buying them in cash. Of course, you will still need some kind insurance policy to cover your butt. It is not likely you will get sued but you never know.

Hey Lisa, it sounds like you are in a bad position in terms of cash. You will want to have some money handy and work with a contractor and there are construction loans but it may be difficult if this is first time without a partner who is experienced and has a nice resume of builds.

Hey  how's it going Amir. I don't wholesale but I recommend you talk to @George Munoz and @Mike Barone as they are great wholesalers located here in Fort Lauderdale and Miami. 

Welcome to BP @Elyse Martinez.  I also like to buy and hold but I prefer Broward over Dade. It's a bit cheaper and less busy. I am also an agent and manage all my properties so I can give you a few pointers if needed