All Forum Posts by: Richard Warren

This is something that I've done numerous times. I've never had a problem. One lender simply had me sign a document attesting to the fact that I am the sole member of the LLC. However, you may wish to check with your state regarding transfer taxes. In Nevada it was an exempt transaction and not subject to tax.

8)

An apartment building would require a commercial loan. You are generally looking at 30% down. Credit score is much less of a factor than operating income. They way around the 30% down is to get the seller to hold a note for the difference, get a loan for 70% with 20% down and the seller carrying a note for the balance.

8)

Hey Primo, check the dates. This thread is from March 2006.

8)

They are just selling information that you could obtain yourself. You need to decide if the convenience of not finding it yourself is worth the cost.

To find HUD, VA and other government owned homes you can go to www.homesales.gov

8)

What could go wrong? Quite a bit. The deal doesn’t work out as expected. The property goes into foreclosure and your credit is trashed for the next 7 years. You need to ask yourself why they need your credit, why isn’t theirs any good? That’s a red flag. Is a $10k gain worth the risk of ruining your credit? It may not happen that way, but it could.

8)

This is the tune they've been signing since the late 1970s. Taxes are ridiculous and the young people are moving away. Yet taxes keep going up and the population keeps growing. That East Islip house on the Website had taxes of $6200/year on a property worth $300k. Insane. I'm in Las Vegas now in a house worth $750k with taxes of $3200, and no state income tax.

8)

Welcome to BP! I am also a former Long Islander. I moved to Las Vegas in 2003. If you look at my Website you can see a couple of pictures of one of my Long Island projects.

8)

The standard formula for rehabs is (ARV * 70%) – repairs = maximum purchase price.

This takes into account holding and selling costs. If you anticipate a longer hold than 4-6 months or so you should adjust the percentage down to 60-65%. If you are paying cash and don’t need financing you can raise the percentage to about 75%. If you follow that formula you should come out OK most of the time.

8)

I agree with all cash. A tax deduction just means that you lost money. The other side of the coin is to ask, “what is the best use for this money?” If there is a better investment than paying down the mortgage you should consider that. Don’t downplay the psychological factor of having the mortgage paid off. If you haven’t read The Total Money Makeover by Dave Ramsey, you should.

8)

My lowest price was $17,000 in 2005 for a SFH 2/1. I spent $4k on the rehab and it has been rented ever since for $600/ month. It has had no vacancy and repair & maintenance has been about $250 total. It recently appraised for $60k. Too bad they aren't all like that.

8)