All Forum Posts by: Account Closed

This is a Fannie Mae standard. If a bank is a Portfolio lender they may have a different policy on this. May want to check with a local lender to see if they are a portfolio lender.

There are only a handful of degrees that a feel are worthy of a full 4 year college/university. If you honestly feel a degree is important, than I suggest a person attend a 2 year community college to get most of the basics out of the way.

Going away to college is not only about learning the books, but also about a coming of age. Learning responsibility, but is college the best way to do that? I certainly feel if you want to "come of age". Serve your country!

If a teenager can't apply to get a butt load of scholarship money, then why not join the military. After four years, you have a better idea of what you want to do in life anyway. You can then return, use your GI Bill, or in several states such as Illinois, your education at a state institution is FREE (if you live here prior and return after).

When we are 18 do we really know what we want to do for our lives to put up with over 100k of debt for the rest of our lives? Maybe we should have a poll. What was your college major? what is your degree in? and what are you doing for a living now.

Electrical & Computer Engineering here.. and 100% full time real estate. I use that degree... not really.

@Lisa Miller solid points. You can go a step further. Is the child properly clothed for the weather as well. Are they properly clothed for it. Were they gracious to hold the door open for others if they were present.

DO they give you an excuse on why they can't give you key pieces of information on the application?

Yes, how one handles themselves is important on a job interview. It is the same when screening a tenant. I would rather leave a unit empty for a couple days/weeks more than have a bad tenant in place.

@Jon Holdman is correct only if you are the sole owner/member of the LLC. If there is another member of the LLC, then the LLC isn't passed through to you.

DISCLAIMER: Neither an attorney or a CPA, just speaking from my own interactions here.

The LLC is flexible in that you can pass through the income to your personal returns similar to a S-Corp, or you can elect to file it as a company separately. If you have a multi-member LLC (you and another person or persons) it must go as a company. Any income you take out of that LLC should be followed with a K-1 for your personal tax purposes.

@Jon Klaus There exists a basic flaw in your question. You assume that people that use OPM don't also use their own. The main reason for using OPM, is there is far more of that available then people have themselves.

If you only have 50k yourself, that greatly limits what you can do. However, bring in 3 others with 50k, and you can really do a ton more.

Again, the assumption that people that tend to use OPM and don't put in their own, is flawed. With that being said, using BANK money is also OPM. Banks get deposit money.. and only are required to have x% of that capitalized. SO where do you think it goes? Yep, loaned out or invested. So a bank using OPM, investors use Banks and OPM (both of which are OPM).

It is called LEVERAGE.

You know why divorces are so expensive? Because they are worth it! Ha sounds like no love lost between these two. It is a shame.

Do keep us informed of how it goes, but do you at least know her name? If you don't, search the county records. Most divorce records are there, and you can see his name, then her name. If her name is on title, you can see that as well.

Then you could potentially find out where she lives via ye old Google.

Just my 2 cents worth.

@George P. an LLC can be treated either way, a multiple member LLC is automatically treated as a company. If you treat it as a company you are better off. LLC is the way to go. If you pass it through to your own taxes you lose the point of the LLC to begin with.

Anyway, set it up, be a business, and deal with commercial lenders. You will be surprised how many loans and how many properties you can do then.

I have a few "Junkers" that I deal with. They get first crack at stuff (after I pick through it for any "gems"), but they must take it all. So they clean it out for free, and they can scrap the rest.

Taking the time to post it on craigslist, etc is not in the job description of an investor. I get them in, they get it out, I rehab the place and move on. They treat my property great, and give me referals for other property leads as well.

@Stephen Sims I have taught full day classes on Wholesaling and not been able to cover fully what you are inquiring about to be honest. I second the advice above, keep reading. There is no shortcut to success.

@George P. funny man.

Time for you to start realizing this is a business and deal with business bankers/lenders. Are you ready to go from playing pick-up games to getting at least into the minor leagues? That is the analogy I use for those that continue to do residential financing.

You are getting the bug and realizing you can't do it the same way. Get your entities filed, be sure to keep your operating agreements, annual reports and meeting minutes. Separate bank accounts, etc (Do not co-mingle funds), keep it all separate and treat it as a business. If both you and your wife are members of the LLC, it makes it more as a company that a single member LLC.

File separate taxes for it. This keeps another layer of liability insulation. And it allows you to be treated as a business by lenders. Get the loan in the business name, build the business credit profile, etc.