All Forum Posts by: Tyler Hodgson

@Allen Fletcher Thanks for the response. They would want an equity structure rather than a lender structure, as they are trying to get a decent return on their investment and potential for profits.

I would be very little involvement, more just a vessel for them to be able to get cheap financing by qualifying for the mortgage. The properties would be managed by professional management and I wouldn't be doing any physical labor on the deals. 

Essentially I'm just using my name and mortgage qualifying ability and would get a share of the profits for doing so.

If you had outside investors who would supply 100% of the capital needed for the down payments on some rental properties but you had to take out the mortgage in your name and title would be in your name, how much of the net profit would you require to take the risk be involved in the deal? Assuming of course there are some legal agreements behind this that protect both parties. Would you want a 50/50 split on all profits (net income and proceeds from sale or equity cash-out) or does one side deserve more of the profits than another.

Just curious to get some other opinions on this. Thanks!

Any commerical lender's in the DFW area who can do multiple investment properties for a Canadian citizen? I know a few lenders that will do 1 or 2 portfolio loans for foreign nationals, but looking for other options.

Thanks!

Here is rehab and holding costs budget:

Currently have two rental properties, but this deal will be my first flip. Here is my question: 

- Me and a partner are going in on this deal together, all cash purchase. Both contributing cash, both managing the project. Profits split based on capital invested. Not sure if we will do future deals together or if we may add a third partner (he can't make it into this one). Should we establish an LLC or S-Corp at this time? Is it worth the $500 to set that up for just one deal. Any tax implications of property and flip being in just our names? Obviously there is added liability to our personal assets without setting up a separate entity. I understand that, but I am curious to know more about the tax implications.

- How do the numbers look to you? Anything I am missing, or recommendations?

- What is one thing you wish you'd have known/done on your first flip?

Thanks!

Dispute those taxes! 

There are companies that will dispute in your behalf and charge a contingent fee based on the savings. I dispute all my properties every year. 

Don't go to a bank. Talk to a mortgage broker. They will answer all these questions and more, get you best loan for your needs, and get your pre-qualified so you know exactly how much you can afford. 

I'm only licensed in Texas so try to find someone in Florida in your local area. Most people should have online application where you can do everything digitally and don't need to go into the bank. 

Good luck 

@Michael Bracken why not do cash out refi on primary at 4.5% 30 year fixed rather than a 6% variable heloc. I would be locking in as much 4% 30 year money as you can right now. 

If the rental isn't cash flowing with 70-80% LTV you might be best selling that rental to get the equity out and finding a rental with lower taxes. Have you disputed the property's assessed value?

Even on the rental I think a cash-out refi at 5% for 30 year fixed would make sense. I'd rather have $50k in hand with only $100/month in cash flow than spend $40k out of pocket to get $1000/month in cash flow. That would take like 100 months to recapture the cash savings there. I don't know the exact numbers on your property so these are estimates, but I hope you understand what I'm trying to say. 

In summary, I'd lean towards cash-out refi on 30 year fixed loans to borrow some cheap money. Hope this helps! 

@Zach Faris no problem. That's a hefty goal! I'd say finding the deals is the hardest part, especially in this market. 

I found one on MLS and one was a tip from a realtor before it went on market. I try to keep my eyes open for deals on MLS, from wholesalers, or just leads that I hear of people looking to sell. I don't do any mailers or signs or anything like that yet.

A couple meetups I went to were beneficial, a couple weren't all that great. And yes I'd say I just haven't found one that I can make it to consistently.

Hey Zach! I live in Lewisville, and invest in the area as well. Currently I have 2 SFR rentals. 1 in Flower Mound and 1 in Keller. I am looking to do a flip or a BRRR strategy deal this year. I just finished my CPA exams and I'm also a mortgage broker. So if you have finance and accounting questions I'd be happy to give some advice.

What are your goals this year?

I've been to a couple local meetups, but nothing I've really stuck with regularly or that I would consider networking groups.

Good luck!