All Forum Posts by: Rich Littlefield

You can use a paralegal or lawyer. You can actually buy books on Amazon or the bookstore that can guide you through filing it yourself which is how I do it.

I would put the money in and own the properties in an LLC and or maybe an S corp. You would then make him a partner and you would be a general partner. This gives both of you a lot of protection.

Depending a a lot of things, I can get you a better deal on the  financing.  Mostly where the property is located. If it is in Alhambra I am guessing I can do 8% interest and 2 points. I got one approved for 7% and 1 point a couple of months ago.  Where I see people have problems is getting permits, but usually they are rebuilding something different. I think if you are just restoring an existing structure you will not have the problem.  Anyway the cheaper financing could save you a couple of thousand dollars, in the scheme of things it is not that much, but you might as well get it.

I guess if you can assign the contract to buy. Many foreclosures want cash, VA deals and FHA will allow loans but I am not sure you can assign the contracts. Besides usually on the VA deals and FHA it is hard to get a good price on them. It would be interesting to know if it is possible. What I see is people buying them for cash, then having to rehab them and wait 90 days to get past the FHA flipping rule.

The thing to know about Biweekly is that paying the payment early does you no good. Because the payment is due on or before and does not accrue daily. The reason Biweekly works is that twice a  year you make an extra payment. So start an account and put your payment in it and write your checks off of it. Then the months were you deposit 3 times send in an extra check. 

I take that back, the other way is to assign the contract. But I am not sure how you can pull that off.

The problem is that what you probably what is a double escrow.  Escrow companies refuse to do them. So if you are wanting to "wholesale" properties you have a problem. Purchase options are the only alternative I am aware of. 

Well, the other problem is that many lenders that ask for tax returns do not know how to read them.  Unfortunately those are the guys with the lowest rates. If you have to pay a 6% rate instead of a 4.8% rate it takes a toll on your income.

On investment properties, many times we can go stated income or  use bank statements as income. If you are having credit problems, you may want to get  your credit fixed.  

I would ask, "is it already rented for the $1800?"  If the property were here in the Los Angeles area, those numbers would be pretty good, I am not sure about in the Los Vegas area. It appears you feel it needs work.  You are putting $41,000 down. Do you have a good reserve after all is said and done? In short, I would double check to be sure that the return on the investment is good for your area, and be sure that you have reserves to pay the mortgage if it is vacant now or while repairs are being made. Also that you have an idea where the money is coming from for the repairs.