All Forum Posts by: Tanner Sherman

@Alfredo Alfaro I believe the escrow account would close after the house is paid off and the owner would then pay the county and insurance company directly, but I would ask the seller to be sure. Also, escrow is just a holding account, you can have one set up whenever you want, banks just require that funds be held in escrow when they lend on a property. It wouldn't be too much trouble to pay the county and insurance directly but whatever you can work out would be best

Those are incredible rates and if I were you I would find a way to keep the loans as long as possible and even refinance the vehicles if you can keep those rates, in order to take that cash and invest it into real estate. If you pay it off early, you would have a few hundred dollars extra per month, but let's say you owe 10k on each vehicle. Would you be able to get higher than 2.5% return in real estate? If so (which is very likely) it doesn't mathematically make sense to pay off these vehicles as it will take you a long time to save up 20k again just saving that little bit of money. If you can leverage these vehicles' value to invest more, it would be the smartest decision. Essentially, you are using the arbitrage model by borrowing money at 2.5% and then investing it for 8-12%, leaving you with a 6-10% profit

I am not familiar with any areas that require a lease for short term rentals. If you are renting for 30 days or more it would require a lease, but I have heard it is best practice to only allow stays of 28 days or less in order to avoid any accidental eviction law issues. 

Best tip I can give is find a way to make your rental unique. Whether it is an art mural wall or a scenic view, have that one selling point that gets people talking about staying at your unit. 

They will likely give you a bankers check, or cashiers check, that you can then deposit into your account. If you have a checking account with them they may be able to deposit it directly into your account, but you should really ask the lender about the specific process. Either way, it will be given to you as cash that you can use however you please, but I would agree with your idea of reinvesting it and not buying a boat. 

Are flips not considered short term capital gains because of that active participation, and thus becomes regular income? 

That depends on how you structure the deal. If they still have a loan on the property, they will have Taxes and insurance automatically placed in escrow every month, therefore your monthly payment would consist of PITI. If their house is paid off, you would have to just pay them principle and interest and pay the taxes and insurance separately.

If you are looking to scale in a way that will allow you to use the same money over and over again and acquire more properties, you should look to get a HELOC on your house, find a hard money lender, find a fixer upper in a good air bnb location, contract everything out, use your cash to pay the hard money lender and leave your HELOC untouched for emergency reserves in case you absolutely need it (or are ready to have multiple project going on at a time.)

Have you looked at the Find an Agent tab at the top of the screen? I'm sure you can find an agent that would be open to partnering. 

Networking is the absolute best way to create deal flow. I see more deals being passed from investor to investor than wholesalers can compete with. Local REIA events are absolutely pivotal to success.

You caught my attention at Beers and lost it at San Diego. Cheers from Omaha!