All Forum Posts by: Robert Herrera

@Vicki Gleitz It's been about 9 months since you made this post. How have things gone so far? Do you still own this house? Are you looking to sell?

@Account Closed Welcome to BP. You are WAY ahead of the game, since you already own the house free and clear. It is a great idea to do a cash out refi as it is tax free money, that will make you rich. It is tax free because you don't pay taxes on a loan. 

Once you rent this out, you will be one step closer to being financially free. I'm not sure of your expenses in life, but this house could help cover you biggest expense, your personal home rental costs. 

Great idea to put that cash out refi into other investments. 

Start reading more books. 

My favorite books: 

Rich Dad, Poor Dad

Richest Man in Babylon

Straight Path To Real Estate

On a side note, use the @ symbol followed by the name, to bring up the person you are trying to connect to. Click on their profile to tag them. 

Also, press the Vote button on useful info that will help others. 

Have a good day

This is just like the stock market. Everyone standing on the sidelines, hearing about Pueblo. Then this report about it being one of the best markets for 2017. Everyone is going to wait a couple more years, and as the value goes up, everyone will buy in when it's at the top of the market in 2020. That is because they are coming in late to the party. They will get mediocre returns at best by then. It's like when the stock is shooting up, everyone hears about it and buys in at the TOP of the market because its "HOT." By this time, the real investors already made their money, and will gladly sell you a top of the market home. 

@Logan Halliburton I've been saying this for a long time. I'm glad it's finally caught up to everyone. Market is moving fast, and everyone getting $15/hr by 2020 is going to make this a great market for everyone getting in NOW.

@Tim Emerson Yes, i go to pueblo all the time. I was just there yesterday taking care of 2 of my properties. Electrical on 1, and Plumbing on the other. They are newly acquired properties. I am always willing to Advise, Mentor, Or Partner with someone on the many deals down there.

@Anthony Johnson great job on doing subject to Investing.

Add this tool to your belt!

I am doing similar investing, but i actually partner with the homeowner, so there is no Buying Subject To, as the owner is still in place with me. We start an LLC, we put both our names in it, as a 50/50 partnership. Quit clam the Deed into the LLC. I pay the mortgage to current, but make sure the home owner is out and the Locks are changed, as they can just move back in or stay after you pay the mortgage. Not a good situation to be in when you're out thousands and they are living in the house all happy for free.

I rent it out, and give them half of the Net cashflow. If there is a lot of equity, we sell the house, and split that.

Makes it easier to get home owners to work with you, and looks less predatory if it ever goes to court. 

Happy Investing

@Kevin McCollick Make sure it's a 4-plex as that is the highest you can go with an FHA. Also, get Pre-qualified from a Mortgage Broker to see if you even qualify for that much of a loan. You will need 3.5% down on an FHA, so you will need $10,500 down.

No, you can not put 2 people on 1 FHA loan unless you are married.

Possible to GIFT the funds to you, but you will be the only one on TITLE and the only one to get Tax Benefits, and all of the income will go in your name.

Your partner can be a property manager, and you can pay him his share out of this. The problem is, you are a single person, not an LLC. That means, if you make $5,000 on this property, you will get taxed on the $5,000 income. If you give your partner half, you will still get taxed on the whole thing. Now you partner has $2,500, and the money will get taxed again when he receives it.

In a sense, you are paying taxes on income that you don't get, and he is also paying taxes on that same income that he received. 

If you owned the property in an LLC (which you can't do in an FHA loan) then you would be able to pay your partner, and it would be a tax write off for you, and he would be the only one paying tax on the money he received.