All Forum Posts by: Ryan Saulle

@Stephen Warnock You're on the right track! Keep reading, researching and networking. 

HML is a great option for a beginner and still great if you've done many deals. There are some credit cards that offer 0% interest for a year but I wouldn't suggest putting everything on a credit card and having no funds to back it up. Sure it may work sometimes but in my opinion you're asking for trouble. A business partner / investors are a safer start if you have no funds, but you'll need to put in the leg work. PM me if you'd like to get some idea's. Hope this helps!

Ryan

Hey @Domonick Dangerfield,  first what type of deal are you looking for? A flip, rental, brrrr? Second, do you have a W2 or do you not claim income?

Hey @Kyle Steiner, I am not a CPA or an attorney but I believe @Logan Allec is correct, you cannot.

I would talk to an attorney and CPA in your city but my CPA suggested I open an S-Corp for my flips(and also setting up a contracting business) to help minimize self-employment tax but I also have an LLC opened for properties I plan to hold, I'm sure people will argue against that, and one reason is if you plan to have multiple exits(you can't sell the property and hold onto it) doing so under an S-corp can be a problem in the future. @Amanda Han may be able to help with this. 

Also suggested is that once a flip is complete to close out the S-corp and open a new one for the next flip for reason #4 that @Costin I. wrote. The same with an LLC if you're holding a property, some will suggest you open a separate LLC for each property will others prefer to have them held under one LLC and just take out extra insurance protection on that LLC.

I do not have a definite answer and I would absolutely talk to an attorney or CPA in your area but I hope this helps!

Ryan

@Kyle Doney @Justin Silverio

Thanx all

@Logan Allec Appreicate the response!

The callback rate will be lower if i send is this week? Would you suggest waiting until after the holidays or new years?

I already have most of the envelopes and stamps ready so I would have to re-do the letters and change envelopes to make greetings cards.

Hey BP members!

I am starting a direct mail campaign soon. Does anyone have experience with direct mail around this time of year? Should I start this week, next week or after the New Year? Any suggestions would help.

Thanks!

Ryan

Hello BP pro members,

I have a question regarding FHA / 203K loans.

Is it possible to get an fha / 203K loan as my first primary residence even though I do not show income. I left my job over a year ago to go into real estate full time. I started my own company now but I do not write myself a W2 salary yet. Starting in 2018 I will start writing myself a salary but I was told I can not get a 203K loan until I show 2 years of W2 income even with a co-signer (someone in my family) who can qualify for the loan. Any help would be appreciated!

Thank you,

Ryan

@Brian Pulaski Sometimes there is a buyers premium of 3-5%, which would add 3-5K to the final price if purchased for 100K. Make sure you read the disclaimers on the site and take that into consideration when bidding. Also closing cost fee's, which is standard on any purchase not just auction sites.

@Elaine Fawcett I purchased a house from there about a month ago, also had a title issue that was caught by my attorney. The issue was resolved by the seller and the transaction went through smoothly. If i didn't have my own attorney and I used their title company I may not have caught the title issue and after the purchase it would become my problem. I was aware of issues like this before i bid and agree with @Michael Noto on always having your own attorney when purchasing from auction sites. Hope this helps!

Sure @Tonya Weathers!

I have two companies opened. The one I purchased this property is an S-Corp and I also have an LLC opened with a partner that I am looking to purchase a buy and hold property with. I was told an S-corp is better for short flips over an LLC and an LLC is better for buy and hold properties (Don't quote me on this. I am not an accountant or legal advisor, just relaying what was suggested to me).

As for the financing part: I used a hard money lender for this deal. They funded 80% of the LTV which was $205,150 ($150,150 purchase + $55,000 rehab).

At closing they came with $164,120 (80% LTV) and i came up with $41,030 (20%) + closing costs. They charged 2.5 points at a 10.5% interest rate with a 1 year loan duration.

They also fund the $55,000 rehab cost which is held in escrow and I receive that money in drawer payments after the work is complete. I set up the drawer payments with them in 4 drawers of about $14,000 each. How the drawers work - I do the work (example roof, siding, concrete), then I contact them to inspect it. When they come and see the work completed, they reimburse me the money and repeat that process on the next 3 drawers.

As for personal financing vs. company financing - from what I've heard and read, a lot of big banks do not lend to company's or LLC's so it may be hard to purchase a property in one although i'm sure you can find one if you search enough. The hard money lender I used doesn't lend to an individual and actually required me to purchase in a company or LLC. I would suggest trying to buy in an LLC or company or if you use personal / conventional financing eventually try and transfer your property or properties into one to protect yourself. Hope this helps!

Ryan