All Forum Posts by: Steven Goldman

Finally to add one last bit of confusion. If you are not getting a government insured loan to begin with than many HMLs require a LLC. Once you close the loan, I see no value in transferring it to an LLC. In some states you have to pay transfer taxes between yourself and your own LLC. If the loan docs have a due on transfer provision than you should not do it. You can always buy your next acquisition in an LLC and just keep this in your name. Remember for tax purposes a single member LLC is treated the same way as an individual tax payor.

@Juan David Maldonado     A good deal is a good deal regardless of the general economic situation. Likewise, the same goes for a bad deal. Do your due diligence and  surround yourself with a strong team including, relators, lenders, managers and accounting. Your team should have experience in investor real estate. Your money guy should  do pre offer analysis of your deals. Do not buy a property unless you know how you are going to get the money to execute. Make sure your out is solid. If you are holding that includes a understanding of the cash out refinancing. Good luck.

Alex you need enough money to put down a down payment. Most of our wholesalers are wholesaling because they do not have enough funds to flip. So, that is absolutely untrue. Wholesaling is a matter of finding a homeowner who wants to sell and developing a relationship with them so they trust you. In this business when you have a relationship for closing deals you will find business whether you are a agent, lender, broker or wholesaler. Good luck.

Hi Alex: Because each investment property stands on its own merits from a Hard Money Lenders perspective you will need to get a pre qual. in order to look at many investor properties. To obtain a pre-qual you will need to provide to a broker or lender your credit score and, proof that you have funds sufficient for a down payment(Bank Statement or other statement). You will also need to know the purchase price and whether the current fair rental value if unoccupied, or the current rent. This will permit your finance guy to do a deal analysis and determine if the property qualifies. In addition if it is a fix and flip you will need an approximate scope of work and rehab. cost. Most HML lenders will provide you with a deal analysis once you have a target property. Good luck.

Hi Trevor, I already like this house. It is a 1950s mid century flat roof. Where is it? Maybe I will buy it from you. What will it rent for?  Sort of kidding. As a rental I would use the budget to make sure the windows, gutters, mechanicals and plumbing fixtures are good. How's the roof? Otherwise ask a realtor what the fair rental value is in current condition. I would not make any cosmetic changes unless they are going to increase the rental value. Just get the shell and mechanicals in tip top shape. This is a really cute house I hope you stole it!

@Galit Garsiel  @Chris Seveney    I agree completely with at Chris.  The real estate investor community has a passion and dedication to real estate. It is also a sharing and welcoming community. All of the information you need to succeed in real estate is available from either open sources, books, or other investors. That is not to say that a local experienced investor who is running an investor school has no value. It just depends on how committed you are to the journey. You can find all you need in open sources or books, if you are willing to spend the time. Some people learn more easily when in a group environment at a dedicated time and place. So, if that is you, get yourself a guru. If you do not need one to absorb the information, than why waste the money? Good luck.

@Davis H Son  David generally an appraiser will assess the durability of the materials with which the house is constructed in determining value. The appraiser will also take into account the agree of things like the roof. So a soft slate  roof has a useful life of 25-100 years. Shingles 20-30 years. So how old is your slate roof. If it past half of its useful life and showing serious signs of wear and tear than it is not much more valuable then shingles. I have found that when rehabbing a house if something is near the end of its useful life it is better to replace it than repair it. Ultimately buyers or renters are willing to pay more when they feel like they are getting something new or refreshed.

@Justin Melton    Partnering with a contractor can be a positive experience. Allow me to point out some of the challenges inherent in that structure.  Ultimately the money partner is the one with majority of the risk. When you partner with a contractor you must make sure that the contractor has a reputation for honesty. The contractor can build a large or small profit into the scope of work. It is hard to determine how much profit the contractor is taking on the construction. You must make sure that you structure the partnership taking into account that the contractors contribution to the project  is his construction expertise. So you do not want the contractor to take double profits. First on the job, and then again as an equal partner on the return. You are not lending the contractor the money so that he can get construction jobs and then splitting half of the equity or cash flow with the contractor as a partner. 

On the other hand, by having a trustworthy contractor with skin in the game that contractor has incentive to make your projects a  priority. Like so much in life it boils down to making wise choices about the people you associate with. Once you have done some BRRRRs you should be able to engage a contractor without having to give the contractor equity in the deal. It boils down to you having sufficient knowledge of construction costs and practices to ensure that  your projects are properly priced and executed. Hope that helps. Good luck.

Hi Naomi, Loews and Home Depot always sell their cancelled order merchandise in the contractor department at a discount. Befriend the Manager of the  nearest building supply company and tell him to keep a look out for the things you are interested in. Flea markets are good as well. L.O.L. Good luck   

@stephen Bialecki Steve see if you can find a meetup in the AC, area where BRRRR house harking is the topic. You will definitely meet other investors who have hacked or BRRRRed in the past. Investors and rehabber take delight in helping newbies get started. We are a welcoming community. If you have a deal fee free to call me to do an analysis it is part of paying it back. Good luck.