All Forum Posts by: Brian Turnbough

Sounds like you guys are on your way to be real estate mogals! Let us know how your first flip goes.

 So if he pays 10k in interest for the year, he could get a $2500 tax break? No thanks, I'll Pay the $2500 and put $7500 back in my pockets!

I do agree about getting educated though.

 You will still have to pay taxes and utilities. No matter what you do or where you live. But I'm assuming that it would cut your monthly expenses in half with a paid off mortgage. If you can't see how you can start flipping with 15k then you may not be ready to start flipping. As far as borrowing against the property and something going wrong, would you rather lose that property to foreclosure or your own? When I said you could use your primary as a debt weapon, I meant after you get seasoned on flipping, get great at analyzing a flip and knowing all of the risks, then you could borrow against your primary home. 

I'm giving you a more cautious approach. I hate to see people lose their home because they tried to go to big, to fast, and fail. 

I wish you the best of luck in your investing choices.

Pay off your mortgage. If it was an inheritance then honor the people that you got it from. If you are new at real estate, you can go further faster without worrying about your mortgage on your house. Use the 15k to start flipping. Borrow against the property you are buying so if something goes wrong your property is protected. 

After you perfect investing in real estate whether buy and hold or flipping you can use your property as a debt weapon.

I would suggest getting your license and keeping it inactive if you are going to spend the money on the course. You can learn everything you need to know online without spending a few hundred dollars. Besides if you take the course and decide you want to get your license next year then you will have to retake the classes and they may add more requirements. 

@BrCancelInsertet

Some questions you need answers to are as follows;

What is your credit score?

How much money do you have available through 401k, or collateral?

Do you know anyone that you can ask for the money? Friends or family that may have the money sitting in their 401k. How bad would you feel if you couldn't recoup all of the funds from the flip? Also, would you give up and say it's not for you if you lose money, or would you get another property and try to get some of the money back you lost on the first deal.

As far as getting money, you can do a FHA if it's going to be your primary residence (multi-unit) or a 203K which is also FHA but gives you funds for rehab. You should be able to find a bank that would lend you up to 80% LTV at around 6% interest which as a realtor you should be able to run comps on the properties you are interested in.

You will also need to find a handyman or contractor, depending on the scope of the work, that can get the work done quick so you don't have to pay to much in interest. 

Hope that helps

I don't like using Trulia in Texas. The information is never correct. Zillow isn't much better either. But if your trying to stay off-market you don't need to use the real estate apps. When you set up a rental, ask the landlord if he has any properties that he wants to sell. Easy question that most people are afraid to ask. 

 How does that work? You only work with rentals? They are also a good source of off-market supply. You may have the potential to buy from a landlord.

Have you done a flip together in the past? I would suggest doing your first flip together without the LLC. That way if you don't like each other's ideas or like working on it together your not out the cost of starting the entity. When the house sells you can part ways. If it goes great and you have fun working together then get the LLC and start writing expenses off of your taxes.