All Forum Posts by: Blaine Alger

I am in the process of getting pre approved for a loan and I’m curious whether or not I have to claim the debt on a rental property that I bought using  owner finance.

I realize it is somewhat a grey area but from my perspective, it seems like it would be private debt and would not show up on the bank side so there is no need to disclose it.

Furthermore, my bank already ran my credit check and said the mortgages did not show up. 

I would say it depends what you value your time at.

If its going to take 20 hours worth of your time, then its gonna cost you $30/hour.

If you could do something else within that time line that can produce you $40/hour, then i might be worth it to fork up the money.

-BA

I love the property management tip. I just got my properties set up with property management this past month and currently working on building that relationship so they'll send me the tired landlords. 

At the moment, most of my deals have come from relationships that took 2+ months to build. When I talk with people, i spend more time than most building rapport and getting to know them. 

This lead source is FREE but emotional drainage and takes a lot of your time.  

-BA

My advice:

Do not act young and inexperienced.  Educate yourself, have confidence and fake it till you make it. 

Best of luck out there.

-BA

There are  a lot of great recommendations above, but it doesn't have to be something too complicated.

I like to keep things simple, since I'm not the sharpest tool in the drawer. I just tell my tenants I am the property manager and they believe me. From my experience, tenants are not going to go through the trouble of looking up your info on the county GIS to figure out who owns their house. 

And even if they do, you could still get around it. 

K.I.S.S.

-BA

Congrats on deciding to make the jump into RE.

Just some words for the wise:

Being an agent can be very lucrative and can provide you a great lifestyle but it is a grind. 20% of the agents do 80% of the deals, so there is not alot left for the ones starting out. Just prepare yourself to hustle.

I think finance is a great compliment to a career in RE. That is what I majored in and I found it comes in handy. It is very important to understand the numbers and your returns.

Feel free to reach out if you have any other questions.

-BA

Hey Lukas, congrats on the money moves.

So with multifamily properties bigger than 4 units, you will now find yourself in the commercial lending world opposed to residential and the commercial side is a completely different beast. 

When financing commercial purchases, banks will weight more of the decision on the asset rather than your personal credit. But the underwriters would still like to see you have some type of experience or a  partner who knows what they are doing. 

And just like with anything, it will be a very relationship based transaction (if that makes sense). One banker might tell you "No way!"  and then the other one might give you the green light. I would suggest you start by talking with banks/credit unions in your area and see what suggestions they have for you in terms of commercial lending options.

I hope this helps provide you some insight. Feel free  to reach out if you got any other questions, I'm always happy to help.

-BA

Welcome to the forums Aaron.

Biggerpockets is a great place to be and it has helped me immensely in my investing journey. I would start by just applying consistent action in your education. Dive into the forums, blogs, podcasts and book and over time you will develop a better understanding of the REI world.

Feel free to send me a message and I would be glad to answer your other questions.

Best of luck

-BA  

So even if it is not an outright sale, the seller will still get hit hard with Cap gains tax?

It has always been my understanding that owner financing is one of the ways to lessen the burden of cap gains tax and one of the main benefits to the seller.

I could be wrong, would love to hear some others advice.

-BA

I know there are better ways out there but d4d is the best source of leads in my opinion. You just see things that other investors will overlook when they pull data. 

1. Use land glide to tag properties ( $100/year)

2. Get a google voice # (FREE)

3. Use true people search to manually skip trace trace your saved properties (FREE)

4. Use Google sheets to mangae your leads.  (FREE) 

This is how i got started in RE and thinks its a pretty good system for someone operating on a tight budget. Let me knoe if you got any other questions.

-BA