All Forum Posts by: Joe Villeneuve

Metro Detroit suburbs area.  Gold mine.  Specifically Redford, Livonia, Ypsilanti.

Joe Villeneuve
REcapS Systems

We always hold one house per LLC. Every asset you commingle puts the other asset at risk. Also, why would you not hold each property in its own LLC? IF all that LLC does is hold that property, the paperwork is minimal, and your accountant should not charge you much to "check" your paperwork.

Joe Villeneuve
REcapS Systems

First off, don't ever make an offer based on what you think it would take to get the property.  Always, and I can't stress this enough, ALWAYS make offer ONLY based on you making a profit or cash flow...preferably both.  You should reverse engineer your offer.  Figure your offer like this:

• Sales comps in area (base on same style/size/type of house)
• Subtract:
  • Profit (start with that, if you don't make a profit why bother)
  • Rehab (based on a bid...not guessing)
  • Cost of money (financing, etc...)
  • Holding costs
  • Commissions
• What you have left is what you offer and no more.  If you don't get the property because someone else bid higher (even if it was only $5 higher), you didn't want it anyway.

The numbers don't lie, so never argue with them.  You'll lose every time you do.

Think of it this way.  Real Estate investing is a lot like playing poker...and no because R.E. Investing is gambling...it's not if you do it right.  It's like poker for the following reasons:

• Never send good money after bad money.
• Losing pots is not the same as losing money...as long as the money is still on the table...it's just in a different pile.
• Stay in the game...make your bids/buys accordingly.

Keep this in mind at all times.  Sometimes the best deal you make is the one you don't.

Joe Villeneuve
REcapS Systems

Buying with cash, particularly if it is on a discount, allows you to use that cash on an unlimited number of houses...and in the end, you never have to actually spend it.  Chances are, as an investment property, you will be getting a large cash flow from it.  That large cash flow will allow you to cover the payments when you refinance your "cash" right back out...to use again on the next house.  Just keep repeating this as long as you can/want, and when you refi the last deal, you get all your "cash" back.

There's a little more to it...it's always in the dtails, but I think you get the jist of it.

Joe Villeneuve
REcapS Systems