All Forum Posts by: Alfath Ahmed

I have a few questions and I will definitely be seeking professional guidance as well, but wanted to throw this out in the forums.

Background: I have just opened a single member LLC. I have a personal HELOC on my primary home. I've been looking at foreclosure auctions.

1) If I wanted to use my HELOC to bid on a property and with my LLC in mind, I'm leaning to having to fund my LLC using the HELOC, with my bid price in mind (plus other costs) and then bidding on a property and if successful, write a check from my business account. This is where it gets confusing for me. If I go this route, I'll be paying interest payments personally. How do I invoice my company to recoop the interest and the payments on the principal?

2) Is there another option? Bid personally, sell to my LLC and take a conventional loan and repay myself after 6 months?

3) Do you have any experience on auction sites for foreclosed homes?  Any advice you would share?

4) Or am I totally in the wrong in and you have another avenue you think a new investor should look?

Thanks!

Steve

Which city do you prefer to invest in and why right now ?

Hey guys,

So I have an offer accepted, I'm looking to close in 30 days on a multi-family in the Cleveland area. I'm curious on how to go about paying the down payment so that I will not potentially trigger a "due on sale clause", when I transfer the Deed to my LLC. I still plan on personally guaranteeing the loan to secure it. Should I have the funds come out of my LLCs account for payment or is it fine paying the down payment out of my personal account then once the property is paid for, transfer the Deed to the LLC. The LLC would collect rental payments in a business account and make the monthly payments on the mortgage operating like it should. (but mortgage would be under my name still). I've been told to "Wait a few months before transferring the Deed". In advance I'm sure people will ask why I would have it under an LLC for my first property, of course liability protection but the main reason is Taxes, I'm not trying to have the added income from the property be on my personal tax returns. I appreciate any and all input!

I want to work as a Finder in California but do not have a DRE license.  I am able to find clients who would be interested in buying properties in other states -  for example New York, Florida, Texas or Ohio. I'm pretty sure this is allowed within California based on articles by CRES Insurance, but unsure about how to send clients to other state realtors as a finder.

My question is: If I make agreements with realtors in various states outside California, can I send them clients and collect finder fees? To clarify I will not participate in negotiations or other activities needing a license. Is such a Finder business model common? Are there any gotchas that I need to be aware of?

I'd greatly appreciate guidance and pointers!

Regards - Jyotin 

Good Morning,

What areas are still cashflowing and I can scoop up and hold? Is Ohio/Indiana/arkansas over-saturated now? Looking to network with realtors and investors in the game! Cash ready. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $60,000
Cash invested: $35,000

Taking down our first foreclosed property here in Mansfield, Ohio! I've had really good luck with the upper starter home level homes with an ARV around the 150,000 mark. Our market is called off a tad, but this type of inventory continues to move super fast.

What made you interested in investing in this type of deal?

Low entry, limited inventory on market, a quick 2-3 month project

How did you find this deal and how did you negotiate it?

On market. We sent 6 offers, one per week until the bank finally accepted.

How did you finance this deal?

PML @ 1% per month with all payments deferred until closing. That's some good stuff right there!

How did you add value to the deal?

This is a lipstick + flip.

New floors, paint kitchen counters, cabinet faces, new bath, install central air

What was the outcome?

It will be a quality, move in ready home for a first time home buyer

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, the GOAT John Pavlansky at Dream Huge Reality in Mansfield, OH. Tell him I sent you!

Since launching our website and Facebook group, the number of requests has skyrocketed. Buyers and sellers are lining up for deals. While we primarily focus on the Texas/Oklahoma market, apparently receiving a commission for finding deals or bringing investors without a real estate license could be illegal. What if we charge a consultant or marketing instead of finders fee? Can we avoid any legal litigation here? any advise?

Hi,

So I have a situation where Cuyahoga County records states my house has 2 beds but my house has 3 beds. The appraiser came in and appraised it as a 2 bedroom and called the 3rd bedroom as a "Den". Is this something I can dispute and get the 3 bedroom so I can increase the appraisal value? What is the process like to change Cuyahoga County records? Are there any risks?

Thanks,

Joshua

I am very new to the industry, to the point that I think I should start an LLC as a holding company. The local title company says I should talk to an attorney first, but I'm wondering if this is necessary. Can I go straight through the secretary of state? Or should I use a service such as Zenbusiness or Tailor Brands? Thanks in advance.

Hello all...I am have been working on analyzing deals but really struggling with estimating rehab costs. Any suggestions?