All Forum Posts by: Shawn Thom

My rentals are not exactly close (30-50miles from home).  $25 would not cover my gas, tolls etc.  If for some reason I was feeling charitable, I'd make the tenant meet me at the wal mart or home depot closest to my mailing address published on the lease to make a copy of my key that they would pay for.  If I wasn't feeling charitable, I'd tell them to call a locksmith.  I've never been called for a lockout before.

On the pets, I don't allow any pets - ever.

you haven't said what your goal with the properties is.... buy then flip, buy then rent, buy then re-owner finance it.

Regardless, buying a house owner finance is not a no cash deal.  Even if you find someone to sell you a property with no money down, If title changes hands, it cost money.  If a realtor is involved, someone has to pay them. 

There may be pre-paid such as taxes, insurance etc.

In Texas, we go through title companies for all the title work and paperwork. 

As far as a realtor, I don't know how it is in other states, but in Texas you can buy real estate without a realtor.  That being said, I suggest getting some one local to walk you through the process.  There is a lot of things to be aware of with owner finance.

@Curt Smith are you sure about having the to pay full capital gains taxes 1st year?  Everything I find says it is spread over the length of the loan.

on #2 having a signed contract that has a due date and listed consequences helps. J Scott has a contractor work agreement in the file place that is a good start.  That way you can show them in breach. 

From what I've read a contract has to have certain language for a lien to stick. I don't think it'll stop them from filing one but it may not stick if contested. 

In my experience it has been easier to get financing through my LLC. Even when my LLC was brand new and had no income, I had no issue. Typically LLC financing is going to be some sort of portfolio lender. That is always easier than doing some sort of personal fannie mae type of loan. For the foreseeable future, you will have to do a personal guarantee on any LLC loans anyway and they will loan against your person credit. If you have good credit and a solid source of income, getting an LLC loan will probably not be hard-assuming the bank is confident you know what you're doing.

That being said, buy and hold would be good to do in personal name with some fannie mae money if your goal is cash flow.

Fire list and code violation can be gotten for free through freedom of information request through the city. There are typically links for those requests off of the city website. A few cities will make you pay, most don't (at least around me).

I'm confused by this line.  Can you give us more details?  You do need to have insurance to cover the loan amount.  Are there any other details like you are going from a 30 year to a 15 year etc?

Originally posted by @Lydia B.:

 The new loan company told me yesterday that they would need a higher coverage amount in order to fund the loan (this news one month into the friggin process).

Whats the plan for the house?  Is it a flip, a hold, are you going to be living there.

Also, are you saying work was done, and now it needs to be done again?  If done again, is there a warranty that a foundation company will honor to re-repair it?

to answer your question, if this was a hold, i think I'd pass.  If this was a flip, I'd get the foundation fixed with a warranty and go for it assuming the numbers work.

You need to get a static test check on the sewer line to make sure there aren't any issues there.

1.1 inch ain't nuttin'.  My biggest has been about 7 inches. Get used to it in Texas.

PS 500th post.... Wha! Wha!

I still save as much as I can..... I just call it working capital now :)

Also, double confirm your major systems work.  For example, you don't want to find out your sewer line needs repair and they need to bust through your slab after you put your flooring in..... or find out you have aluminum wiring after you paint your walls.