All Forum Posts by: Benjamin J Haithcoat

I've heard a lot about about the BRRRR method. But the part that isn't really talked about is how the mortgage payments are made during renovation. So, my question is, do loan companies require payments to be made on your mortgage while renovations are being made and therefore your property is vacant, or can you defer those payments until the renovations are complete and you have an occupancy permit?

 I appreciate that thank you i will do that.

Hey everyone, 

Seeing as having good credit is a must in this business, can anyone give me any advice on how to raise my credit score. I need to raise it about 50 points in order to qualify for a loan. My credit dropped a fair amount in the last couple of years for not being able to pay a credit card due to lack of income. The only debt I have now is my mortgage, a small credit card payment, and student loans, plus utilities. Any advice i can get would be great.

I went to my credit union today and inquired about their requirements for financing on small multi-family investment properties. Unfortunately, this particular CU doesn't work with multi-family properties. The loan officer informed me that it would be a good idea to form an LLC, and have this particular entity own the properties to avoid personal liabilities for me when lawsuits are concerned. From the podcasts and webinars I've listened to, I've learned that having an LLC isn't a must but is another option that we all have.

My question is this: Would it be better to start an LLC before I purchase my first property, or should I just have the property under my name?

Because im new to this and dont have extra money to spend on multiple subscriptions to websites, where can I find out what property values are at in my target area? Another question I have is how can I see how much the surrounding homes have been updated and or renovated?  Should I want to be the first house on the block that tries to raise the property values or should I look in areas that have properties that are already on the rise in quality of furnishings?

Thanks in advance for the input everyone!!

This is a fair question. Once we have multiple properties, should we take the cash flow from the second or third property and put it on the first property (or vice versa) as a principle payment. This would cut down the interest paid on the first mortgage, and cut the loan time down by a large margin. I understand that the whole point to buy and hold investing is to generate monthly cash flow, but isn't there something to be said about paying off the mortgage to increase the cash flow in the long run?

thank you so much for responding. i will be happy to reach out when i find a deal worth bringing attention to.

Are there any real estate groups in the St. Louis, MO area? Also, are there any mentors in the greater St. Louis area? If there are mentors, what can I bring to the table to make it worth your time? 

@David M. 

So, basically what your saying is that I should keep a percentage of the income in an account, so that it can be paid at tax time?

Hello,

I am a new-comer to investing. I plan on wholesaling at first to build up my capital while at the same time growing my network and learning all I can about the business. While my plan isn't to remain a wholesaler, I want my main focus to be on long term buy and hold multi-family properties. The "analysis paralysis" is starting to set in as I listen to podcasts (BP and others), read books on real estate and personal finance.  Many questions have been brought to my attention from all the information that I have been gaining. So ill just start with one question per post and go from there. My question is, how do you navigate the income taxes incurred from wholesaling. Meaning how do I avoid owing a large amount to the IRS at the end of the year. Thanks for the help.