All Forum Posts by: Lucero Sanchez

@Terence Clark can you explain what cash on cash is maybe give an example and on the 2% rule please?

@Joe Racicot welcome to BP here is a website off a fellow BP member who has reached financial freedom at a very young age. https://goodlifeinten.com My husband and I are still working at it but almost there. My advise is be patient this takes time and dedication. Focus on your goals and don't give up! Absorb as much information as you can get and you get a lot of it here on BP. Don't be embarrassed to ask questions and once you become knowledgeable in this feild remember successful people help others succeed in other words share your knowledge. ;) I wish you luck and success. :)

@Mehdi Khachani I honestly feel your #2 incentive is not very good. Let me tell you why; 1st: I hear a lot of men complain how the wife is always spending the money. Why is this well because of your #2 (incentive) you should show your wife to invest the money not throw it away. 2nd: once you give her that check she will always expect a check on every deal. What happens the day you can't give her that check? She will most likely have a tantrum and will make your life hell for a few days in some cases a divorce is filed. and 3rd: you have to teach each other to work as a team, you both want to become successful so she doesn't get a check, you BOTH reward yourselfs with a well earned vacation or fancy dinner or what ever makes BOTH of you happy. Be a good and fair man that's what makes a wife love her husband and will do all she can to help him, a check is not needed. Don't just make her a check to keep her happy and to be supportive. Because it won't come from her heart. I don't mean to sound rude. This is just my opinion and from what I have seen from the people that surround me.

10 years ago my husband and I lived in our first home, we had a mortgage and lived a 9to5 job just like the majority of the people. One day my husband came to me and said "I was thinking, if we sell this house and build a house with the money we get back from the sell and move every 2 years, in 12 years we can live in a half a million dollar home and be mortgage free". I looked at him and he looked uncertain like if he was waiting for my approval. I remember I told him he was crazy a mortgage is a forever thing". We argued and I cried because I didn't understand what he was talking about. He drew me a picture with little houses on each one it had how much we would buy them for, how much we would put into them, how much we could sell them for and he would circle in red what our profit would be and how it can add up. After a couple days of this information marinating in my head I walked into the living room where my husband fell asleep after a very hard and hot day (he works as an HVAC tech in AZ) I woke him up and said to him "you have showed me that I can trust in you and when you promise you keep that promise, you are a hard worker and you have gotten us this far, so yes I will walk next to you no matter how hard it gets". Together we have made it to where we have been mortgage free since 2008 and have built enough capital to where we are now building our half million dollar home with no loans. We also have a few other assets worth about $250k. And still growing. When my husband feels like throwing in the towel I am there to help him carry the load. We are a great team. My point is it might not be easy convincing your wife but be persistent make a presentation that you know she will understand (for me it was the drawing of the little houses) and show her you are a man of his word that she can trust and feel to be a stronger women next to you. Let her know you need her next to you on this very difficult road. Words and action make a women melt, a wife can be the most supportive and the most faithful person in your life if treated well. I'm sure you can convince her. Once you do, show her the man you are by not giving up. I wish you and your wife the best of luck and a life full of success. :)

Here are a couple things you can do if you want to get into real estate investing (now this is if you move to AZ, I don't know other markets):

1) you can become a house hacker, you put a down payment on a duplex, triplex or fourplex you live in one and you rent the others that way you can be mortgage free or at least pay very little on the mortgage because the tenants will pay most of it (just depending on what you get and how much you put down) than with the extra money you save you can use it for your next investment.

If you want to build wealth in this field you need to be open minded and see the potential so you want to get outdated properties so you can remodel to increase that value/equity of the property. If you are good with the hammer and know some construction you can get the ugliest house and turn it into a very nice priced gem. 

2) If you get a nice amount back from your sell in NJ you can put a minimum down payment on your primary residence (again be open minded so you can get a good deal), and then you can put a 20% down payment on a rental property that way your rental pays itself off and helps you pay part of your primary residence mortgage. Again this will work if you buy below market value but if you buy properties at its price than this won't work. 

I was born and raised in AZ , you have Cali next door, you have Rocky point just 4 hours south (Mexico)  you have Las Vegas and you get no Snow and no matter how hot it gets I wouldn't want to live anywhere else.

Get into the real estate business if you know how to move your pieces you will become rich.

Good luck and congrats.

@Chris M.

It's this simple,

If you want to fly with the eagles stop swimming with the ducks.

@Robert Herrera I understand you are not an attorney or paid adviser but it sounds like you have allot of knowledge in this field I thank you for your help and your time. I feel more confident in moving forward with this LLC thank you again.

Wishing you success ;)

Lucero

@Robert Herrera one more question, sorry, right now we have funds from our last flip over $150k in our personal bank account, but we hope to break ground this week on a house we will be building for us to live in for at least 2 years. Once we get our LLC name and EIN to open business bank account should we transfer funds to the new business account or leave it where it is?

@Robert Herrera Ok got it, so I understand why separate LLC for rentals but flips is it so if there is an accident and someone gets hurt like a worker during the renovation they can go after the LLC not our personal assets? What back ups the llc on flips/rentals do we need to get insurance on each llc or a bond, how does that work?

The other question I have is do we open one business bank account under the same llc we will be using for flipping and all monies from all flips and rentals go into the same bank account or do we need to open a separate bank account for flips and another bank account for all rentals or each rental?

Sorry I am drilling you for answers it's just I want to make sure I have my ducks in a row since my husband is putting all the paperwork responsibility on me. I have been doing my own research at the library and even speaking directly to customer service where you get the llc but they don't seem to understand my question or maybe I'm not asking the right questions. But it seems you understand my questions. I would like to take classes somewhere to learn more about this. Do you recommend anything? 

Thank you for your time.

@Aaron Christen @Gord Stevenson

So what happens if a flip is under one LLC and no other properties are on that LLC and the flip sells, how long after the sell of this flip can the new owners go after the LLC if something goes wrong with the property, like electrical, plumbing, leaky roof etc., or does once the property has been sold the LLC has nothing to do with it, if does have something to do with the LLC how long till the LLC is no longer liable for that property?