All Forum Posts by: Bill Mitchell

@Rob K. How do you verify that your tenants respect your rules and indeed only smoke outside and not inside?

@Rob K. Does paint and flooring generally remove the smoker smell? Also do you just refuse to rent to smokers entirely to avoid this issue?

@J Scott Would you mind elaborating on what you think is going to happen and whats causing it? Thanks in advance. I guess it has to do with the hedge funds since you mentioned black stone. I didn't think the hedge funds were buying *enough* property to cause a market fall out.

@David Beard If most HML wont even make the loan if a exit is a refinance, how do people cash flow from month to month at 18%+ interest?

@Mike H. Great reply Mike!

I am a bit confused that its more difficult to refinance from a HML to conventional than I initially anticipated. From reading here on the forums, my local meetups and such it seems that was everyone is doing and fairly easily. Buying with HML 18% interest or whatever, fix up the property put a tenant in, and refi out to a conventional 15 or 30.

Perhaps its because as you said, if you are under 4 properties, its not to big of a hassle.

I guess once you start accumulating more property you should start paying some off in full to make room for more properties that you can aquire via HML.

Of course not, thats why I said you convert from a HML to a conventional 15 or 30

I have never been through the HML process, but it is to my understanding as soon as the property has been properly rehabbed and up to code/inspection you must convert from the high interest HML to a conventional loan.

Is this difficult to do generally? My biggest feat with hard money is needing to convert to conventional but being stuck with hard money and unable to get out of it and the 18%+ interest. Its even more of a concern because I own my business and its harder to get conventional lenders on board unless you have a typical 9 to 5.

@Graham Mink Thanks for responding. Tens of thousands of dollars. So as long as I can document everything, I can still use my LLC checking to buy reglular things? For instance buy groceries, or new shoes? Just again, noting it is a personal expense and not business related?

I am gearing up to set up an entity in the form of an LLC. My question is, when you earn money that is made payable to your LLC, how do you spend it?

You can't commingle funds, so how do you spend the money you earn?

@Account Closed No I don't put it in the contract. I have no reason to. This is my word, if my buyer backs out they are getting the money simple as that. The deposit is wired to me personally outside of escrow, I dont have to do a release of earnest money or anything, I would simply meet with them and write a check.

Also not fully disclosing with OWNER OCCUPIED homes or when a lot is at stake for example a 7 day move deadline, moving to another state, any other very time sensitive issues like that is completely unethical I would never do that. For things like this its best to take down the property yourself with your own cash, and then you can wholesale it later yourself as the new owner.