All Forum Posts by: Amanda G.

I sold a property with a partner with owner financing, and I need help figuring out the K-1 for our LLC. This is the only asset we have in the LLC, what kind of income are the mortgage payments? how do I record the value of the note, which is obviously going to decrease over time. Advice or links to useful info?

I have an applicant who is moving out of the home of her kids' father (how she puts it in the application). She has no rental history given. How do you handle that? Do you balance it with some of the other income or credit criteria? Looking for ideas.

@Dana Kimberly, what you'll hear if you stick around is opportunity cost and the velocity of money. There is nothing wrong with making extra payments. However, when you do, you are essentially saying "I have nothing more valuable than 4.5% to do with this money for the next 20 years." The more sophisticated you become as an investor, the less that will be true.

Hi Dee,

The question is really, how long do you have to buy with private money before you can transition to a better rate conventional loan. Often that is 6 or 12 months, it depends on the lender. So don't expect great cash flow while you are using private money. Do your math on how much that is going to cost you, and then use the calculators to consider a long term loan. And if you aren't already talking to local banks and credit unions, that's an important next step.

One deal at a time Kevin. You get there one deal at a time. Focus on the tasks in front of you- have you made all your phone calls this week? Have you set up enough appointments? Are you minimizing your personal expenses and improving your credit so that you can capitalize on the deals when you find them? It's not magic, it's taking the right steps often enough to get results.

Zillow rentals can give you a fair idea of the market in your area. Click the purple button to see the local things for rent.

@Vincent Pirrone, I'll echo what other people are saying. You don't have to measure yourself against anyone else's yardstick. 
While you are building up your reserves, this is a great time to network with your local community- you aren't a wanna be, you have a deal under your belt. That makes you obviously teachable, if you are willing to soak in the experience of other people who have done what you want to do. With your massive work ethic, I bet you can find creative ways to be of value to those more experienced investors, and that can turn into money or social capital. 
There is a saying about perennial plants- the first year they sleep, the second they creep, the third they leap. Set yourself up to leap.

Not what you want to hear, but much better to get your potential funding in place BEFORE you bid. There will be another great deal. Head to your local REIA and start meeting people. Ask them who lends for short terms in your area.

You may be able to get other money faster, but it will be more expensive. Waiting the year will get you the cheapest, easiest loans. If you want to do more research, call your local banks and credit unions about their commercial/portfolio loans. They will have higher interest, shorter terms, and probably be callable (meaning they can ask for the money back at any time). Do your research and then make your best decision. A year feels like a long time, but the difference might be worth waiting for. Good luck!

Hi Ian,
This is totally not what you want to hear, but if you are planning on using that cash in the next 5 years, you probably don't want to risk it in stocks, no matter how blue chip. If/when the market goes down is probably exactly the time you want to buy, and that will be when you have the least funds available, if yours are tied to the stock market. Weigh your risk/rewards, and consider if living with 1-3% interest in a high-interest savings fund is worth having the money available to you when you are ready to buy. Good luck!