All Forum Posts by: Ryan Chatman

@Kevin Scott lakefront properties small and large absolutely crush it in the Poconos. I think the strong summer seasons financially make up for the weaker off seasons. Make a nice use of that 1200 sq ft and you'll have no problems getting at least 60% occupancy/year.

@Daniel Kevin Lara without asking what the structure of your deal and not knowing exactly you are doing here is my advice: The 0% intro credit card option for a few thousand dollars isn't terrible as long as you have a specific & conservative plan for what you'll be doing and a plan to get it paid back before that intro period ends. Plenty of investors have supplemented their rehabs using credit cards and end up fine at the end of the day.. It is all about discipline and having experience with your project scope & budget. I probably wouldn't suggest this for larger rehab budgets or something where you are likely to run into more issues (opening walls, floors, structural changes, etc).

Overall though, I'd say be patient to see if you can to stack more cash reserves prior to your rehab. You could also possibly bring some friends or family in as investors and work out a small deal to raise the same amount of funds with more forgiving terms.

That being said, what are the numbers on your deal? What are you trying to accomplish?

@Ivy Markov yes you can act as your own registered agent with no problems. You'll save yourself on fees doing this. Like @Ethan G. Mentioned, you'll have to list your physical address on the docs if you are the registered agent.

I would also +1 on creating an operating agreement and also create articles of incorporation which will be on file with the state. Operating agreement is an internal doc banks and companies that you work with will want to see. Articles of incorporation are generally public and define the setup of your LLC. Although I am in business with my wife we still have these documents set up.

I am a big fan of NOLO's books on LLCs, Tax, and incorporating. They are straightforward and informative. These will save you on lawyers fees until you get to a point where you'll want to invest in an attorney for lock-tite documents that create corporate veil protections.

This is a great bundle which will help your knowledge on LLCs and Tax:

https://store.nolo.com/products/nolos-start-and-run-an-llc-bundle-lopbun.html

Most of these books should also be available at your local library if you want to save on paying for them :-)

The biggest benefits in doing your LLC to start will be for tax purposes which a good CPA or tax planner can help you with.

PM me and I'll share some docs that I have with you!

More info on LLCs in TX:

https://www.nolo.com/legal-encyclopedia/texas-form-llc-31745.html

@Neil Damayo I'd also say find an agent to work with if you haven't already. 1, they'll be able to locate places that you can't find online, and 2 you can start going to see those places. It will give you some forward movement and more familiarity with your market. For example, I learned that certain cities in my search areas had crazy high taxes and that definitely modified my end results.

@Abraham Klein recently upgraded from window units to ductless for the 1 or two months in the Poconos where it gets very hot and we are extremely pleased. They cool fast and are very efficient. Our ductless units also do heat as well. Less costly than adding in ductwork and a traditional AC system.

@Loubert Antoine congratulations on a great deal. I'm sure you got a lot of value add with it being hoarded!

@Neil Damayo - @Nathan G. Has dropped some sage advice in the post above on driving for dollars and researching your areas. What techniques have you all been currently using to look?

Building will certainly cost you way more than finding a property that you can renovate and end up with the same result.

Patience is definitely key, it took about 6 months for the right deal to come up when we were searching for our househack. And I will also give a +1 on being ready to pounce. Expedience is very important in this market. We were first to make an offer on the househack duplex property and that helped us greatly.

Good luck with getting into the game! You're making a great choice!

@Matt Duckworth I always tell people that improving the lighting is a quick, inexpensive way to bring a unit a fresh look. I'm a big fan of canless recessed lights with options for changing color temperature. Getting these installed throughout can turn a dim dark place into "shiny and new" feeling.

As it relates to kitchens and baths, definitely look at your competition and go a step above if you can.

@Lukas Ku just wanted to point out that by code, a habitable living area should have a minimum of 70 sq ft with a minimum width of 7 feet in one direction. So your #2 "half room" would likely not appraise as a bedroom. If you want a 2/1, option 1 is the best bet. Hope this helps you. Maybe you can post a Floorplan and people can toss around some ideas to help you out.

@Joshua Sun my short answer: look for a bank that has features to offer convenience, plenty of locations or ones close to where you'll operate, and a fee structure you are okay with.

Long answer:

1. Do they charge monthly fees? Require minimum balance? Minimum transactions?

2. Fees/limits for transactions and/or deposits

3. Convenience in locations/atms

4. Convenience with apps & online banking

I have used both large national banks and smaller "local" banks and credit unions for business accounts, so I'll share my experiences.

1 & 2. I can't stand paying fees. If my business was new at the time and wouldn't be carrying larger balances, it is simply annoying to pay a bank for not having 1500/2500 minimum average balance. I've also had banks that tried to add fees for things like doing a certain number of transactions over a month. In this case you'll need to determine your financial activity and pick a solution that will work for this. There are also plenty of banks that will have no fee business accounts which is my top choice. Smaller banks are more likely to have no fee accounts, but some big ones do too.

3. Convenience in locations has become very important for me especially since I'd moved to a few different parts of the country and my wife and I love to travel. Nothing beats being able to walk in to a location and resolve your business not far from anywhere you are located at the time. Large banks win in this case.

4. All Online banking/ATMs/apps are not created equal. Local credit unions and small banks usually have online banking & apps but they lack some of the features larger banks have, and their sites are a bit more clunky. I can easily do transfers or different transactions with better suited apps and websites. Another big one is the ATMs of smaller banks sometimes would not have deposit capability or they claim you can deposit your checks at any ATM in their co-op network. I've had to wait almost 2 weeks for a deposit using a co-op ATM, and it sucked because my account didn't even show the deposit until after that 2 weeks. I also have had some banks where their app didn't allow mobile deposits but almost all banks do this now.

I have been very happy using Wells Fargo small business checking, but they no longer offer the same no fee account (I opened in 2015). I'd google search for no fee business checking and see what banks are nearby. Also they should have plenty of ATMs/branches in the area you will be in the most.

I think the above factors are most important for your main transactional account.

As @Hayden W Gibson mentioned- For mortgages I would create relationships with a small local bank's loan officer. This is what we did, completely separate from our primary transaction bank. They will have the best rates and also understand the local markets.