All Forum Posts by: Josh C.

Thank you for the replies @Dee M. and @Travis Boyer.  So, in your experience this has not been an issue?

I have been looking at some foreclosures on the MLS lately and have noticed that sometimes sections of the ceilings are cut out. Is that because people took the copper pipe?

@Mark Gallagher - I think you stated it better than I did :) - exactly, I have an investor willing to contribute X amount of money, and I am just curious how that whole transaction works from a paper standpoint.  I don't think there are any limitations, he can take the loan in his name, then we split title, or I could take the loan in my name and still split title... but if we did the latter, would the money ever have to exchange hands from him to me?  From this discussion, I conclude that it does not - we just need to bring it to closing.  As long as whoever is putting the loan in their name passes underwriting, there should be no issues.

@Mark Gallagher - well I have actually been toying with that question myself. Do I start an LLC now? Wait until I get a couple properties or few more flips complete, then form the LLC? I was told in another discussion that I cannot borrow with a traditional mortgage in the name of an LLC. As this is really my first purchase with the intent of flipping/investing, I am not sure how to go about the process. If not an LLC, my initial thought was to have the investor take the mortgage out in his name and then share title 50/50. Our goal would be to have the project complete (purchase closing to sale closing) within 2 months.

If I am just starting out and have a private investor who is willing to loan me the cash needed for a flip, how do I get that money from his hands to closing?  Is it customary to ask the partner to write me a check personally (we have a trusting relationship) or do I simply have him write the check to the title agency at closing?  How does that process traditionally work/look?  

@Troy Fisher and @Ed Neuhaus - thank you for the information, that is great advice. I did not know that banks will not lend a TM to an LLC. So the only options are commercial lenders or personal/private money? If you do not mind sharing, what methods do you guys use for raising capital? In particular, early on where you may not have had the track record of proven results?

@Jay Hinrichs you are correct - I bought this home with every intent of it being our personal residence for a long time.  Then, I realized what I had acquired and fell in love with the industry.  About 9 months ago, I began reading book after book, blogs, podcasts, etc. - trying to learn as much as I can.  Now, it is about time to cash-in on this property and begin building my portfolio.  @Bill Exeter - to clarify, a 1031 Exchange only qualifies if the property you bought was either for personal use or as a hold and rent, then you decided to get rid of it, made some money from appreciation, and plan to role that profit into the next real estate investment?

@Chad Reed you are referring to what @Matt M. is talking about, a 1031 exchange.  But yes Matt, I will have lived in it for 2 years this May.  My plan is to sell, maybe pay off some high interest student loans, then invest the rest in flips and/or rentals.  It would be nice to have the additional income now; however, my goal is to build wealth long-term for my kids.  I enjoy hearing what other investors would do!

Thank you @Troy Fisher and @Darrell Lee - Troy, is my assumption correct that when holding assets personally, the belief is that the homeowner's insurance covers most of the liability (at least enough for them to feel comfortable)?

*entity :)