All Forum Posts by: Tim Johnson

Investors often use LLCs either as a form of staying anonymous, or as a way to separate the investment from their personal possessions (in case they should get sued.... for liability reasons.) If you follow these forums long enough you will know that the advantages or disadvantages of using LLCs for investment properties is often discussed.

In the case you mention, it's likely that the investor has multiple properties, each with its own LLC.... so using the address as the LLC name is simple and clear.

I can't tell you if this loan officer is legit.... but if she/he is....asking for the cover sheet of your home insurance policy is completely normal and legitimate. And they will need a LOT more information from you than that. Hey, you're asking to use THEIR money for 30 years..... your personal privacy will have to take a back seat for the moment. Get ready to provide  W-2s, two years of tax returns, bank statements for all your accounts for the past two months, pay-stubs, and more.

Keep saving? Find a side hussle to augment your present job? Challenge yourself on how frugally you could survive for a period of time? (e.g. make saving a fun game....rather than a hardship). Learn patience? (I bought my first investment property at 62.) I don't mean to be flippant.... these are all possible suggestions, and ones that many people never learn, but are pretty basic.  You got this Samuel! (10K saved up as an 18-year old makes you a leader....)

Hi @Ryan Tiglao, welcome to the BP forums!

Investing and working with STRs is a huge and growing industry....and yes, there is profit to be made. Having said that, it's like any other REI - rules are local and specific and the intelligent investor will both know the rules (and freedoms) as well as when to strictly follow them and when to use them to one's advantage.

Unfortunately, the very premise of the video you shared is "how to get around these restrictions...." She claims that what she is sharing is legal and will be a "win for everyone". The fact is..... an HOA of a CONDO or community won't give a damn whether you purchased the unit in a "company name / LLC" or in your personal name - the rules still apply. The fact that she states that it's all "above board".... but yet needs to coach you on "what not to say" should be a red flag right out of the gate.

Yes, many municipalities are clamping down on STRs....and unfortunately it appears to be true for your specific location. There's enough risk involved in REI already without taking on further risk of being shut down by local authorities. There are still plenty of locations that not only allow, but welcome and encourage STRs - so my 2 cents would be to seek out those areas and jump in.....

@Thomas Rodgers There are many podcasts, videos and books here on BP that will help you analyze a deal. You'll need to put in a bit of study time but it will be well worth it...

You need to understand if a property is a potential deal.... even before you make an offer..... or you'll just be wasting your time. So in essence.... you learn the skill of quickly running numbers to see if a property COULD work.... if it looks possible you move on to the next stage of making an offer... and following the steps as laid out by @Joe Miller

For all investment properties you'll need numbers for INCOME, EXPENSE, and your FINANCES (meaning your loan terms, if you're not buying with cash), and of course the PURCHASE PRICE you will offer.

INCOME equals rent income (and possibly some extras like storage, laundry, etc.)

EXPENSES equal insurance, taxes, vacancy rate, maintenance, capex, landlord-paid utilities, and property management costs.... some of this information is available publicly and some of it you'll just get skillful at making educated guesses (e.g. 5% for maintenance,  5% capex, $400-$500 per unit for insurance, etc.) 

Some investors use calculators that you just plug these numbers into, some use the "back of the napkin" method, others like @Justin Elliott use formulas like the 1% rule, etc. In all cases the goal is to be able to analyze a property with these broad strokes in just a few minutes. With practice, you should be able to do this kind of quick analysis in 3-5 minutes per property. When you gain some confidence here...... you are in a different game. Or, to put it another way, if you don't have confidence at this... you are not really in the game. The great thing is that even though it may sound complicated, it's just a matter of practice. Do 10-15 properties a day and you'll be able to do it in your sleep. Do check out some books and videos on this topic though. It will answer a lot of your questions.

Not sure if these forms are only available as downloads for "pro" membership.... but I'm pretty sure you can purchase state-specific lease agreements from BP. Or try a third party..... https://sparkrental.com/lease-...

Most counties will have an assessor page for taxes. And most of these sites will be keyed to a map, although every county is different. Look up the tax parcels to the right and left of your "mystery" property using their addresses. You should be able to then go to the map and see them - as well as to click on the parcel you're trying to get data for. Usually parcel number, owner name, tax amounts, etc. should all be public and available. In my county, if the owner address is different than the site address....that data is also available, making it easy to contact them.

Hi @Daniela Pendleton, welcome to BP forums!

Wholesaling may be just right for you.... but be aware - this is NOT an easy way to automatically raise capital. At a minimum you will need to:

Figure out MA rules and laws regarding wholesaling

Get your method of required forms and legal contracts in order.....and by the way, how will YOU get paid (margin, flat rate, percentage)?

Get your method of "finding deals" in order - direct mail? door knocking? driving for dollars? phone calls? attend meet-ups?

Fortunately, most of this information and "method" can be found online for free.  And as your questions become more specific.... lots of folks here will be glad to help with suggestions as well. Best wishes.....

All homes built prior to the late 70's....that had interior or exterior paint - have lead paint. Lead poisoning is real.. but in order for house paint to be a problem it needs to be either ingested (like a baby or small child chewing on a window sill, or possibly breathed in when old paint is scraped or ground with some kind of sander of grinder. Painting over it with non-lead based paint encapsulates the problem and basically makes it a non-issue. No, nothing to run from. 

As @John Underwood mentions, when buying or selling homes that were built prior to 1978, there are addendums to use and the national pamphlet that needs to be given out. For leasing, similar materials and wording in contracts are available.

Hi @Mack K Everly,

- 32 years-old is a great age to learn about investing..... younger than many who have succeeded wildly.

- a <200K turnkey duplex that will cash flow immediately at $400-$500 a month while being managed by a good friend - wow, doesn't sound like too tough a decision. This would not be a fork in the road for me.... (assuming you have the funds to move on this....)

- sure, you want to get out of renting....but there's nothing wrong with traveling a step at a time. With smart decisions, the pace will pick up, believe me.