All Forum Posts by: Edmund Ricker

@Tabitha J.

Based on what little information you have provided no one can give you advice tailored to your situation.  However, I applaud you for committing your goals to paper and posting them for public consumption.  I would consider that a solid start that shows you are committed.

Depending on what your current income and expenses look like, your first goal could be very obtainable.  I know a group of real estate investors who do very well wholesaling houses and it can be a great way to generate faster cash for paying down debt and saving.  There are also tax consequences that need to be considered.  Flipping can be lucrative as well, however my personal opinion is that this involves more risk and more capital.  My opinion only....food for thought.

I know nothing of your current job, but I would recommend keeping steady employment until you have a solid #2 going.  Maybe you stay in your field but find a new position, maybe you become self employed, or maybe you "burn the ships" and become a full time investor.  The last option is the one most would advise against....I can't say one way or the other because I don't know you and your circumstances.

I will say that I believe in the human spirit and that if you want something bad enough and are willing to work hard enough, that I truly believe it can be accomplished.

Feel free to message me if you want to talk more specifics.  I would be happy to offer real advice if I knew more about your situation.

Good Luck!

Ed

@Carrie Johnson

Its tough to give you true financial advice without knowing all the facts, but here are a few suggestions based on what little I know:

1.  Decide what is most important.  Money comes and goes but piece of mind is priceless.

2.  Run the numbers on what the costs are associated with keeping the loan and paying it down and selling the property and paying it off and starting over.  Look at different scenarios to see how you can achieve your goal.  Maybe the answer is to keep your existing property, buy another, and generate more revenue.

I hate debt that does not buy an asset that produces income, but I also hate transaction costs of selling property.  In general I am a buy and hold advocate, but it can make sense to cut and start over.

My main point is that no one can give you the advice you need without knowing your complete financial picture.  Feel free to message me if you would like to talk specifics and then I can really give you competent advice.

Good Luck in your journey.

Ed

@Nicholas Hughley

You can go to the website cfp.net and they have a button for finding the professional you seek.  If you find a "fee only" planner they should be able to help you.  Fee only should mean they don't get paid to sell products, they are only compensated by taking you through the planning process.

Let me know how you make out.  I am happy to answer any informal questions you may have.

Ed

@Scott Perkins

From the limited knowledge I have from your situation, based on your above posts, I would recommend you hold your rentals in a sole proprietorship/LLC and consider an S-corp for your flips. There are costs associated with having an S-corp so depending on how much income you are generating from your flip business, it may or may not make sense. However, it also depends on your future plans with this business.

Feel free to reach out to me.  I would love to hear more about your current business and future plans.  There are nearly endless possibilities when it comes to tax planning especially when combined with financial planning and imagination.

Good luck,

Ed

@Samuel Lynch

You can accomplish what you are asking for.  I used Camaplan and had good results.

I find their customer service excellent and their fee structure very competitive.

Good luck on your  journey.

Ed

@Ryan Murdock so happy you made the podcast.  I started listening this morning and can't wait to hear the rest!

@Lisa Sessions

Good for you for looking for deals and trying to make it happen.  I would avoid Portland because I don't like the politics of the town and how they seem to be very landlord unfriendly.  However, if the deal makes sense to you and you are happy with it, go for it.

I think you might be a bit light on your expense estimates.  Generally many investors figure 10% each for cap ex and maintenance.  It appears you have combined them both at 10%.

Also, what assumptions are you using for the mortgage? I ballparked a calculation and came up with a monthly mortgage payment (PITI) that was higher than yours.

If you use more conservative estimates, it appears that this property would not cash flow very well.  However, I am not sure what your objectives for the property are.

As far as reserves go, I would keep enough to cover a major system replacement.  You mentioned a roof in 5+ years and that will probably run 10k or more (without seeing the property and knowing how many squares of roofing).  In general, keep more than you think you need, so when Murphy pounds on the door, you are ready.

To make this property cash flow, maybe you could offer less.  Portland seems to be pretty hot so if the property is priced well it should move and if it is sitting, there is a reason.

I am not trying to squash your enthusiasm, but being conservative with your numbers could help you avoid a deal that will not work out well.  No one wants to see another investor get into a bad deal.

Hope this helps.

Ed

@Sean Cassidy

Check out AmberFields Capital.  Local Maine Lender.  They have a website of the same name.

Ed

@Mike Bicho

I would use your close friend.  It may cost a little bit more to use a professional, but in my opinion it is well worth it.  This entity is being set up to protect you and your assets, don't take the cheap way out.

In general, most lawyers I have spoken to recommend your LLC be set up in the state where you own property. This is another instance where your friend the attorney could be very helpful.

Hope this helps.

Ed

@Tyler Jahnke

Congrats on your investment.  I have only skimmed over the thread and paid attention mostly to your pics and updates.  I did have a phone call with a rep from Morris Invest last summer and I was not sold on using them to invest outside my area.  In the end, I decided I did not want my first investment to be a long distance one.

It sounds like you have had a few hiccups along the way, but that you are on the right track.  I wish you all the best and continued success.

Ed