All Forum Posts by: Son D.

Do you guys think it's possible that Natalie hasn't been to Indy for years and everything she knows about Morris Invest and Oceanpointe is second hand from what Clayton tells her? She's involved on the finance side but her husband is the boots on the ground so if he decides to hide or deny it she wouldn't know any better? If what @Jay Hinrichs comes to fruition and she turns on him that would be her best defense.

@David Muscovalley this is a more subjective question and personal than objective. How comfortable are you with debt? Assuming the worst and you lose that 40k could you work to pay it off along with your current mortgage? How confident are you with your ability and the math with this deal that you found? If you believe that you can make this work then go for it.

Note: don't forget to account for holding cost and tax in case you decide to sell instead of financing.

I've never heard of 401k being a scam. My biggest financial mistake was only contributing up to company match and nothing else. I told myself I'll max it once I pay off my student loans. Of course I didn't until years later. Now I max out 401k, ira, and hsa.

@Timothy Casallas

1. An LLC need to be set up in the state where you have your rentals. Keep in mind that if you have a loan un your personal name and transfer title to an LLC the bank has the right to call the loan due, although unlikely.

2. How many properties per LLC is entirely up to your comfort level. Look at the cost of maintaining each LLC annually. Look at how much each property is worth. What level of risk are you willing to take?

Also just because you have property in LLC does not guarantee protection. The first thing any lawyer will try to do in a lawsuit is trying to pierce the corporate veil and go after everything.

@Dan Nguyen books are often worth the cost but I don't know how much time you have to read them. Lots of well known books that have been out for years have audio versions on YouTube. Every BP podcast have book recommendations. I listen to every podcast for content and recommendations then go look on YouTube to see if it's there. They're usually about 9 hours long. I usually use the audio method to learn faster. This is for general concepts only though. Once you're at the point of focusing on a specific strategy then slower paste reading may be necessary.

Thought I'd post an update since it's been 6 months. The situation remains the same. I still have the same tenant who pays monthly rent like clockwork. MY Management company has been excellent with responding to tenant requests. No really big expense so far. Property remains stabilized.

@Asa Ifill your question is confusing me a bit. If you're using the BRRR method then I would think you'd get a lot more out than just enough to put down on the next property since you poured a ton of money into both the buy and rehab phase.

Or are you referring to a situation in which the deal was so good that not only you pulled out everything you put in but get about 50k over that so you can put in the next deal?

@Joe Szymczyk My suggestion is work on owning properties before you get an LLC, especially if you're going conventional lending. Banks don't loan to LLC.

If you're looking for an LLC for asset protection then make sure you spend money on a good structure. Make it hard for them to even find out who owns it. A simple LLC with you and/or spouse on it will get punched through like tissue paper by plaintiff's lawyers

@Lam N. What does 10-20k rent ready properties even look like? I'm assuming these are SFR? Does your rent include utilities?

I know a group of brothers who spend 60K+ cash all in on triplexes then make 3% without covering anything but 4%-7% just blows my mind.

Thank you guys for this thread. I had no idea solar companies could have lien on the house. I have Vivint Solar on my primary residence without any payment. The contract I signed with them was with the house and not me personally. So the panels will stay on the roof for the contracted time no matter who the owner is.