All Forum Posts by: Robert Leonard

Welcome to BP and Baton Rouge @LaKesha Toney !

Look up "The RING" on meetup.com to find an active REIA where you can meet the investors you are looking for. You can find a lot of them here on BP too.

Hope to see you around on BP and at one of the meetings!

I have to tell you Derek LeBlanc your questions are all over the place in this series of threads you created. You seem to have a sudden urge to do anything to get started investing in RE while being in college? That's not impossible or a crazy idea, but there is some homework in order for you to set yourself up for success. Get the book, The Millionaire Real Estate Investor by Gary Keller and read the whole thing. You can get it from a library, but I recommend you buy it to keep as a reference and use the online free resources you'll find in the book. Listen to all of the BP podcasts! They are like short courses taught by pros using lots of different effective strategies. Take the time to learn how this all works and you will do well in the long run.

Welcome to BP Justin Boudreaux ! You can learn a lot here! Make sure you use the search when you have questions. You'd be surprised how so many questions have come up and been discussed thoroughly on this site! If you have a smart phone, I would recommend you subscribe to the BP podcasts found under the learn drop down menu at the top of this page. Each one is like a short course on different strategies. They are in an educational format that really helps you learn. Turn off your radio and turn on BP!

@Account Closed your post implies that you are selling your personal residence every two years to take advantage of the tax free (exemption of up to 250k single or 500k married) gains from sale.

The two year rule is based on the IRS set time period for selling your personal residence without getting taxed on the gain. The two year rule can be prorated if you live in the property less than the two years prior to selling it. Your accountant can explain the formula. The two year rule only matters if you sell the property when you've lived in it two out of the last five years IF you sell before that five years is up.

In my market, you have to be a cash buyer to compete for investment properties. Conventional financing does require 20% DP, but there are other options. You could get Homepath investor financing (look for the list of lenders on their website) with 10% DP.

Alternatively, you could buy low enough with cash, to "cash out refinance" and get all of your initial investment back to invest in your next property. That can be done using a commercial lender who is a "portfolio lender" and the usual seasoning requirements don't apply. Lots of people will tell you that's not possible, but I'm not guessing or telling you about a cool idea I found on the Internet - I do it and others do to.

When to incorporate or form an LLC is an asset protection question that you have to figure out with your attorney and CPA.

@Matt Hendrickson These are all way too general questions and there are so many variables to each person's situation for anyone to guess what's right for you. You have to figure most of these things out by learning your market, knowing your personal financial circumstances and time available to pursue a strategy.

I recommend you turn off your radio in your vehicle and listen to every podcast until you are caught up and waiting for the next one to come out the following Thursday. Each one is like a short course on a different strategy and that will help you figure out what you are drawn to. Lookup the recommended reading list here on BP, which you can also build by listening to the podcasts.

Your questions are all good questions, but you have to find the answers that are right for you.

@Tony Osborne Yes, I will be at the meeting Tuesday! See you and @Kendell Hyatt there!

@Kelli Bristol I would get a LA attorney's opinion about the title and transfer of the LLC questions you have.

As far as the numbers, if the ARV is 150k, then you need the balance to be below 120k to be below 80%. If the MI is $100 or more a month, then that's where you have the potential to make the monthly cash flow better on this property. If you can pay the 7k now and drop the MI, you will "make" 1200/yr on 7k by eliminating the MI! That will improve your bottom line and your profit margins.

Vinyl siding isn't my favorite either, but the "damage" is done and I wouldn't go messing with it on a property with such thin margins.

I also wouldn't call it free. You found it a lot easier than usual, but WHEN you have a vacancy or a repair that has to be made, it will cost you money.

I wouldn't consider the financing to be a permanent solution either. You can bet that not long after rates rise significantly, banks will start calling these subject to deals to either force a sale or refinancing to reset them to higher rates. No crystal ball, just my opinion.

@Tony Osborne !

I recommend you lookup "The RING" on meetup.com! It's a REIA in Baton Rouge that only costs $5 per meeting you attend. You'll meet investors at all levels of experience following the gamut of strategies. Check it out, there's a meeting next week!

@Damon Armstrong it's been debated, blogged, chronicled, etc. extensively here on BP. Use the search feature (upper right hand side of any page of this site) to help avoid duplicated Q & A in multiple threads.

@Damon Armstrong nope! It's totally optional. There are some pretty significant advantages, but it's not a requirement.