All Forum Posts by: Bryan Clement

Two different mentalities. One is that if your house is debt free, it frees up your cash flow to invest in your new RE business. There is some validity to that. I am currently starting my own rehab business and I don't have a paid off house and it has been rough financially getting the money for my rehabs. My dad, on the other hand, has a HELOC on his house and has the lowest interest rate in the business (2.5%) and has no problem slapping down $160,000 on a flip. It just depends on your personal financial cash flow. He can afford it, I can't.

Hi, so I have a house that I bought on a RD 100% down loan and I'm about to rent it out. I'm hoping to house hack on my next purchase too, and I'm wondering if I can do an FHA loan at the same time as having a RD loan? Also, what is the downpaymebt for 2-4 units under FHA? I've heard some say that anything over a one unit is 5%, and others say it's just a blanket 3.5%. Any advice? Thanks!

I would say that three things determine how you would structure your company: 1. Annual fees to form an LLC. Where I'm from, it's like $100, so not too bad. If you're in California? Whole different picture. 2. Size of the deal. If you have a 300 unit property, this might be wise considering how much equity and value is in that one deal. If you have lots of smaller deals, probably not such an issue as each property isn't worth as much individually. 3. How your state lets you apply your Equity and Cash Flow on your taxes. If it doesn't give you any tax benefit, IMO it's not worth it. On the off chance that your LLC is sued, typically the judges can actually send the claims through your other LLc's to help pay out, if the LLC's are not deemed to be performing "separate operations", which totally defeats the point of separate LLC's unless you get tax breaks. Check with your CPA and attorney.

Congrats! Now the hard work begins! 

Hello, I am almost done with my first BRRRR, and I have the opportunity for a second deal. There is a plot of land with a falling down house and garage a quarter mile down the street from me, FRBO for $3,000. Most land only plots in my area go for between $12,000 - 18,000 at minimum, but I'd have to tear down the house and basically start from scratch. Thinking of putting a stick built duplex or a conjoined doublewide on the property to rent out. Anyone have any advice about new builds for rent for a beginner? I'm pretty much in the dark about new builds, as I've never worked on one before. Thanks!

This is where personal preference comes in. Some people just don't want to do the "landlord thing", because it's too much hassle. Also, the Sherman Anti-Trust act is only enforced when on or two companies control the entire market. Real Estate is so widespread that those laws will never be a player in this game (one of the reasons why we all like this game so much!) Also, with Socialism, it doesn't change the fact that the poor exist. In our country, the rich are capitalists, and the poor are employees or the unemployed. In China and Russia, the rich are government bureaucrats. It doesn't changes the unfairness of the system, just redostributes power to a different, socially elite group of people.

I've heard two theories on this in my college economics classes. One is, that we had to catch up to where we were before the '08 crash, so the recent gains were simply just a market correction and that we are just now starting to have truly climbing price to value ratios. The second theory is the continuous rise theory, where it's not based off of a previous value but simply on how long the market keeps increasing. Right now we would be in year ten of a seven year cycle, so by this method the market is extremely over valued. Either way, it would be prudent to buy cautiously! 

@Josh Stack, that is a really helpful list! I wouldn't have thought of half of those questions. How do I determine what a good income level is for my area? Is there a good research site for any of this info? 

Hello everyone, 

New to BP, joined a few weeks ago and took a few weeks to learn the ropes, now here goes my first post! I'm almost completely done with my first BRRR, and I am struggling to find a good property manager. Any suggestions for essential qualities to look for? At this point, I'm thinking about just hiring my dad (accountant) as that is the best I'm able to find. I'm not in the area so that's not an option either. Thoughts?