All Forum Posts by: Richelle T.

@Bill Gulley I have connected with the veterans and families first program offered by Volunteers of America. The set up seems really simple. No special inspection, lease review or anything. For a house that rents for $750/mo, I will get $475/bedroom by including utilities and lawn service. That is for their single men veterans portion of the program. I chatted with the housing coordinator and she generated an ad to send to the case managers then and there.

Thanks @Mike H. for the clarification. I was not considering an s Corp at all actually. That is definitely something to consider. You were head of me :-)

@Andrew Syrios 

good point mentioning HELOCs for cash flow management. That's a better way to look at them. Thanks so much for your comments everyone!

@Cory Elder 

I don't know how this would work in tandem with bank financing. I'm talking about you solely being the lender. As in you buy a property with cash but instead of investing directly in the property holding entity, you invest in a lending entity. The lending entity then lends the money to the holding entity and a mortgage is recorded. The lending entity holds an interest only mortgage over your desired term so the lien isn't paid down over that term, ie maintaining the equity stripping. Now, yes you would own both entities but there is no reason for someone to think that you are your own financier. As far as the litigator is concerned, the property is overly leveraged.

I'm not a lawyer and I haven't tried this so I may not know the answer to any questions you may have about the nuances of how it works.  

@Al Williamson 

Thanks for the reply! I couldn't get you to tag in my last post for some reason.

Great idea with leasing to grad students. I actually just finished grad school so that niche would be a good fit. I love the creativity. Let's keep in touch with what progress we are able to make. I'm still trying to connect with the other VoA programs at the moment.

Richelle

@Dawn Brenengen 

Your method of screening sounds like exactly what I'm looking for. I will PM you.

Mike H. Hi Mike thanks for your comment but I don't follow completely. Are you suggesting that the property be held in an s corp as opposed to an LLC? Or have a lending s corp as opposed to a lending LLC? If the mortgages held by an S corp still count towards my total of 10 mortgages then are you saying the additional tax benefits of an S corp are worth it? Thanks for your insight. Richelle

@Tyler Knott @Mike H. @Mark Whittlesey 

I hadn't considered to match the debt service with the time of ownership. That does make sense from a buy and hold standpoint. Cash on hand is the best. It makes sense that my growth would be slower using a HELOC because I would have to pay down the debt before moving on instead of recycling the cash. The loan would be small ($30-40k) so I'm not sure I could get longer amortization.

One question I'm debating is that my lawyer was thinking of asset protection and suggested I set up a lender LLC to hold a mortgage on the property. This idea is great for asset protection but in the case where I want cash then it won't work. Cash out-refit could have the same result, a leveraged property, but with one I have cash now, with the other I'm just protecting the investment I've already made. I guess it depends on my goals: growth or sink the cash and protect the equity.

@Account Closed 

@Sonja Bell 

@Bill Gulley 

Reviving an old thread...

Nick Sidoti's program pitch got me interested in this niche market. I just wanted to follow up to see how contacting the agencies has been going for you all. So far, I ran into the blog post Al Williamson did about veterans housing. I have made some progress in getting contact information from my local Volunteers of America and the Community Supportive Housing Organization.

My first Volunteers of America contact (family services) quotes very low rents and they only pay for security deposit and first 2 months rent. These patrons may or may not be employed. It seems super risky. Unless, of course, the plan is to keep recycling tenants after they are no longer able to pay/the organization's donation runs out.

That being said, is it better to target orgs that have vouchers to pay rent on-going on the tenant's behalf? Do you just take the risk? Are these rentals the lowest of low? The SFR I'm thinking to rent is low income but not as low as the price quoted ($450-550 for 2 bd, $550-650 for 3 bd home).

Cory Elder John Blackman my lawyer recommend an LLC, good insurance AND equity stripping (set up a lender LLC to hold interest only mortgages on the property so the properties are technically over leveraged).

Robert Zuccaro This strikes me as dangerous. Having a contract signed by an elderly person with no representation or other party to represent their interests seems like a free ride to jail. It doesn't sit right with me. That doesn't mean it's illegal but it doesn't sound like the right thing to do.