All Forum Posts by: Adrian Lammersdorf-Scioll

For future reference you can put these numbers into chat GOT and it can calculate everything for you instantly.  It’s a great life hack!

What are some strategies you are using to find deals?  I have been investing now for about 3 years in real estate, and I'm finding it harder, and harder to find deals for my clients and myself that work.  I use some mixed strategies to go on and off market, but I'm just generally curious what others are doing and finding that works for them?

I think this depends on your risk tolerance and your interest rate.  If you have a high 7 rate then it might be beneficial in the long run to pay it down if you don't want to put it in a 4% savings account or CD.  If you like to be risky with your capital maybe try putting it in some index funds, crypto, or stocks that you believe in and understand and then take it out when its made a good return and then use it for the downpayment.  

It would be a good idea to assess your tolerance to risk and then plan something like that, but using a heloc is going to be around 9-11% in this market so to pay something off with lower interest rate to borrow more might not make much sense.

They pay who ever it states in the lease. Having them pay your LLC does not protect you from anything if that is what you were thinking.

 Make sure to also put the interest rate and years of loan, and how much down as well.

I'm helping a buyer right now that works int he hospital get 5% funded for them on a home, that may be something to look into, it's called hometown heroes here in Florida.  As for your income, you need to talk to a lender that is licensed in your area.  There is a lender finder that you can use to get connected with a few.  If you are worried about it I would find a duplex or triplex/quad that already has one side rented and the other is month to month and use the income from the one rented to help you qualify.  You can use some easy number in Chat GPT to help you figure out what you need.  Here's an easy prompt for it:

Please calculate how much I can afford for a duplex using FHA current guidelines of debt to income ratio, with one side being rented currently for "XXXX" amount. I have "XXXX" of debts every month, and make "XXXX" every two weeks.

That will find the cost of duplex you need, though you may need to verify it is using current FHA guidelines as they have changed recently, so make sure you use that.

Explore the possibility of doing liability insurance instead, if you don't have much equity it may be your best, and much cheaper option. Accountants are very expensive, and may be unnecessary according to your goals. I regretted making the LLC's and ended up going to just liability insurance with what I had. I got scammed by someone telling me I couldn't write anything off or taking depreciation without an LLC and that I found out was a lie later. Make sure to verify any information from a party that doesn't have any advantage of you getting their services before making a decision. I got pressured once and it ended up costing me a good chunk of change. LLC's are great for when you are expanding what you have.

You do not need to have it under an LLC to take depreciation, the LLC's purpose is to protect your personal assets should you get sued. You are probably better off doing liability insurance on it. Talk to a tax advisor that you trust or know someone personally that has high trust with them. I've had tax companies lie to me about this and I ended up wasting money on unnecessary entities.

You definitely want to use a thorough screening method like rentprep.com that gets their income, credit, background check, and call at least 3 references (make sure to verify them by address/job and then their name).  Income should be at least 3 times as well, otherwise they'll most likely move out when you up the rent (I made this mistake once).

I 100% agree with this. I got scammed into buying an LLC the company scared me, and I regretted it and ended up going the insurance route. I only own 2 properties that are rented out at the moment. LLC's are for when you have a lot more equity/properties.