All Forum Posts by: Calvin Thomas

Here we go.  Initially, I was a web guy and I founded a few large web sites, which I sold a few years ago.  I still have a few, but the large ones I sold off.  I picked up a house, a car and the rest were in Vanguard funds.  After the crash, errr correction, I started to buy up Real Estate in NY/NJ/CT college towns.  I only have a few properties, but I keep on adding one or two every year to my portfolio.  I've always purchased for cash, no mortgage.  Some, I borrowed on margin against my portfolio, and just paid it off.  At a 1% rate on margin, it beats a mortgage any day of the week.  

Others are telling me now that I should look into commercial mortgages instead of funding them myself.  I am hesitant for a few reasons.  One, I hate debt.  When I was running one of my bigger web sites, I had seven figures of debt over my head as the sole owner each month (salaries, rent, expenses, etc.).  It was a lot of pressure for me (never took VC).  I sold in early 2008.  At that point, I had a few bucks and vowed never to go back into debt.  I run a tight ship with all my businesses.  There is a daily P&L ledger for everything.  

I also structure my real estate as each property is in its own LLC, which in turn, is owned by my main corp. Each LLC has its own insurance, and my main corp has an additional 4m umbrella in case of any liabilities from my disregarded entities (LLC properties).

I am not sure how the mortgage game works, as I've never had to deal with it before. I come in as a cash buyer always. If I am sure, I write a check from my margin account to my bank account, create a note to the new LLC, and get a bank check for the amount. I know I will not be able to continue to do debt free as I grow. However, I am just hesitant about mortgages. I do not like having to give tax returns, pay stubs, notices and reasoning as to why I only have a salary at this amount. Why don't I have a staff. How can you manage all of these properties yourself (I have a PM company sub-manage everything). Maybe I am missing something. Maybe I just do not understand the rationale. I am hoping someone can guide me here. It is not that I am afraid of going into debt. I know I can always borrow from my margin, or get a line of credit against any of my properties. I just do not like not owning everything 100% and having to listen to a bank demand this or that.

What am I missing?  Or, essentially, what am I doing wrong or not understanding which is holding me back from expanding further and faster on new opportunities due to my reluctance in taking on any debt?

Thank you.

Okay, thank you for this information.

What I meant, was, ideas or places I can go to purchase the inventory at better rates and then having to purchase them from the contractor who is marking up the price of the items.  Since I only have a few rentals in the capital district, I really do not have much buying power yet on my own.

Hey all, Need some help here. I purchased a home in the Capital District area in NY. It needs a new roof, a few widows and a boiler. Anyone know of any places I can go to buy the items needed wholesale? I have an installer, but they are charging a lot of money for the products. Hoping for some recommendations and/or suggestions. Thanks guys (and girls).

Per their requirements:

http://www.dos.ny.gov/licensing/re_salesperson/re_...

How do I become a real estate salesperson or broker?

How do I obtain a waiver from the 75-hour salesperson or 120-hour broker course requirement?
You must submit a written request stating the waiver you are applying for along with ORIGINAL proof of course completion, a detailed outline listing topics and hours, and a course description. (Home-study/correspondence courses are not accepted.) The prelicensing salesperson's course must be at least 75 hours of classroom instruction and the broker's course, 120 hours.

In addition, if you have a Bachelor's Degree with a concentration in real estate, you may qualify for a 120-hour qualifying course requirement waiver. Please submit an official transcript with your waiver request.

While I have a BA in pre-law, my MBA is in business, so I cannot use the lawyer route.

Over the past few years, I've purchased rentals in NJ, CT and NY.  Have about 9 now in the tri-state area.  I was thinking about getting my RE license in said states.  Anyway I can get around the broker course requirement.  I started buying properties in New York in 2009.  I am not exactly sure how to word the waiver.  I just want the license to use as an investor, nothing else right now.  I m targeting the NY market right now.  That's my main focus.

Yep, that's what I figured. I filed for a NY LLC. Just was trying to get around the publishing requirement. It's a bit of a pain. Appreciate for the insight. :)

Hey all, I wanted to run by a question to the seasoned vets here at Bigger Pockets. I am in the process of purchasing a couple of properties in southern New York for rental income. There will be no mortgage on either, and they are both cash deals. Each one will be in their own entity. Normally, when I buy them in other states, like CT or NJ, I just put them in a LLC, which in turn, is owned by my main LLC. However, NY has the dumb rule of making each LLC publish themselves as soon as filing, which could be an additional 500.00 per LLC. Would it be better to just form it into a Inc instead? Am I losing any protections when switching from an LLC to an Inc?

Thanks.