All Forum Posts by: Ryan Davis

A partner and I are ready to invest a total of $20,000 through our LLC...I have been looking around for a small multi family buy and hold. But with a commercial loan, $20,000 doesn't get you much since the requirement is 20% down. We have tossed around the idea of a flip, but not sure exactly how we would finance this.

What are your suggestions? If you had $20,000, what would you do?

@Bryan Henry Check out cozy.co 

I use them for applications, screening, and rent payments. Its easy, convenient, and free! 

A friend and I have decided to move forward in a partnership. We would like to buy and hold a duplex up to a quadplex. we are okay with something that needs a little work. Simply put, he has the capital and I do not. He has property management experience and is a licensed real estate agent. I have 1 buy and hold experience along with contractor experience. 

My question is this: How do you structure a partnership? What is your advice on starting out a partnership? 

@Steve Bracero I have thought about it for sure. May be a great option. Thanks! 

@Jay Helms why do you ask if it is seasoned, would you advise on refinancing the FHA into conventional?

@Aaron K. Thanks, if I have to wait until I have 25% down, that wont be for a while. I would say a few years at least. 

@Jay Helms Thanks for your response. My current FHA is seasoned until April. My DTI ratio is 23.85%.

I have an FHA loan on a duplex where I live already. I am wanting to start preparing for my second deal. I have heard different things about conventional loans.

What percentage down payment should I prepare for? (I have heard anywhere from 5% - 20%) 

What other things will they look for if I were to seek out a second mortgage? Preparation advice? 

@Naftali Tolibas I know I have commented on about all of your post but we are in similar shoes! I just met with an attorney about 4 weeks ago. I paid for 1.5 hours of his time to make sure I understood my state laws clearly and have him look over my lease that I created...This was expensive but its just one of those business expenses that I felt I needed to do. 

He said to me that in the case that there is no lease signed, each state has its own landlord laws to abide by. If there is no lease signed, you must go by your states minimum standards. I would look online for your states eviction laws, and go strictly by that. Make sure you let that tenant know that she is not being evicted and it will not go on her record. (Properly document everything!), at the end of the 30 days If she doesn't vacate, that is when you go through the court process. 

I would go ahead and sign a lease with the other tenant as soon as possible. Check out Lawdepot.com...I made my lease from there and had my attorney check it out. He said it looked pretty solid, he changed a few things but overall, its a great site. 

@Naftali Tolibas I use Cozy and its great. Completely free, and easy to use. I personally pay the $2.99/ month to get the rent in 3 business days rather than 5.