All Forum Posts by: Brett Russell

@Larry Turowski , I just viewed your profile, so see if the dashboard gives you a different number now.

@Andres Moreno 

First off, you're not going to be able to get an FHA loan in the name of an LLC. Even if you get it in your name and then deed to an LLC, you would be responsible for the loan personally AND you have to owner occupy the property. If it's a small multifamily, then you are in business. Otherwise, you can't really use FHA for an investment property.

As to your first question, you'll find very divided opinions on LLCs here.  Some people agree with your assessment that separating investment and personal assets is a very good idea.  Others say it just creates unnecessary expense and complexity and that you are better off holding properties in your personal name and having a large umbrella insurance policy.

@Burns Mulhearn , I think you simply need to ask yourself 2 questions:

1) Do I want to get involved with real estate investing/buy and hold?  If no, then sell.  If yes, go to #2.

2) Can I put the money to better work elsewhere?  If yes, then sell and put it to work there.  

Another question to consider is: "would I buy the house today to rent it?"  Probably not at the current value you describe, you can probably find better buy and hold deals elsewhere.  And depending on how far you are moving, remember long distance landlording can create added hassles and/or expenses. 

Did you try googling your subject "zip code map"?

Multiple options.  First one is :http://maps.huge.info/zip.htm

@Edita D. , to directly answer your question, have you looked at what your competition provides?  That will tell you what most would expect.

When I bought a rental house earlier this year in a new area, the realtor/property manager told me that it wasn't expected for me to provide a refrigerator or stove much less washer/dryer, so you might be surprised what is the norm.

Beyond your direct question, though, I think you need to reconsider your plan.  First off, I can't see how any lease would allow you to remove amenities while still charging the same amount.  Even if you can, it doesn't project a very good image for you and your property(ies).  If there was a leak in a bedroom necessitating an expensive roof repair, would you just board up that bedroom?  Of course not.  You should be budgeting for maintenance and capital expenditures.

@Kevin Hockaday , beyond the issues of how to achieve the transaction, there is the bigger issue of wholesaling any listed property.  Wholesalers are supposed to bring great deals to end buyers, deals that they can't easily find on their own.  

If you are just bringing them a listed property, what value do you bring to command a wholesale fee?  Unless you are a master negotiator and can get the property under contract at a price so low you can add your wholesale fee to it and that total is still lower than the end buyer would have been able to negotiate, then you aren't really bringing any value.  

You should focus on doing your own marketing to find unlisted properties.

@Hattie Dizmond , I'm curious what type of legal advice you got before going with the Series LLC. In the Rich Dad Advisor book "Start Your Own Corporation", Garrett Sutton is pretty anti- Series LLC, mostly because they are so new they don't have enough precedent to know how they'll really hold up when needed. It seems this is somewhat the case with LLCs in general since they are so much newer than corporations, but definitely with the Series LLC. He also mentions that California is taxing each series as if it is a separate LLC, so if that spreads to other states, the biggest benefit you mentioned would disappear. Just curious if you had heard those types of concerns.

@Chip Chronister 

There is an entire guide here

@Nana K. , I'd say it sounds like a good deal.  You don't provide a lot of information so we can only look at the rent:purchase price ratio.  You have a pretty good ratio, much higher than many people could ever find in their markets.  It also depends on your goals...if you want to hold forever for cashflow, lower income areas typically do better, but if you are hoping for appreciation, you may be disappointed.

I purchased a property with slightly better numbers earlier this year ($750 rent for $30.5K purchase) and my goal is cashflow, so with that in mind, I would look favorably on your deal.  Just watch out for high taxes, maintenance, vacancy that could really eat into that cashflow.

P.S. To use the @mention feature properly, you have to start typing the person's name after the @ symbol and then wait a second and a popup will show up under the text box and then you click on the person you are trying to mention.  Otherwise, they will never be notified you tried to tag them.

@Kevin Keene 

I would just concentrate on recent comps to estimate ARV.

I am still very much learning myself... figuring out the mentality and steps, but still working on taking as much action as I should.  Rehab estimates is a big concern for me.  I'm working thought J Scott's books (available under the "Learn" tab of the blue navigation bar) and would recommend them to you as well.

Finally, just an FYI, to use the @mention functionality, you have to start typing the person's name (or just @?) and then wait a second for potential names to popup under the reply box and click on it.  It doesn't work to just type the person's name after the @ symbol.  Not totally obvious when you first start using it.  I've seen so many people think they are doing it correctly that I finally just made a keyword alert for my name so I don't miss a mention.

Brett