All Forum Posts by: Account Closed

@Tom Townsend Congrats on working out the deal! 

Was curious on how smooth the process was for both sides. I see that when their friend was helping them they were concerned. Other than that how was it negotiating with them and explaining everything. Did the previous agent who referred them explain to them about it or did y'all recommend this as an option. 

Structuring the deal, I'm assuming for the financing y'all just did an addendum for the owner financing and terms, then filed a separate mortgage and promissory note for it. What all else did y'all have to do for the contract side?  

@Cindy Yaa For managing properties overseas, I'd definitely hire a local property manager for where ever the properties are. I recommend this mainly because if something happens when y'all are in different time zones the managers can respond a lot faster and have a lot more local connections with contractors. Plus this will reduce a lot of the headache you may have if y'all are managing them yourselves. Plus local property managers will also be up to date about the local laws. Assuming y'all have already done this..?

Outside of that other business strategies for protecting your assets would be talking to more professionals for legal, estate planning & accounting advice for being overseas. Should do this with your local ones closer to with y'all live as well as maybe closer to your properties or a company that specializes with overseas clients that invest. 

In general for the U.S. you'd want to consider legal entities for both liability protection and helping you save more money. This will also help you run them as businesses. Overall I'd highly recommending setting up as many systems as possible that makes everything flow, automated, efficient and effective to where y'all don't have to deal with a lot. 

What all else are y'all considering? 

@Benjamin Robinson Congrats on the new deal and how you were able to do it! 

Curious on how the rest of your numbers were for the deal and what town/part of town it was in? 

@AJ Satcher Yeah it's still great as you've probably definitely learned a lot about the process and will continue to as you move along! Still a huge & great first step where many don't! That is true, so it is better in that sense too! 

Can maybe consider house hacking with friends to offset some of the expenses while you are there. But that be giving up a place to yourself haha. Options, lol. 

@AJ Satcher Congrats on the investment! 

Definitely a great way to start your home ownership and investing journey. This is a great way to get started and since you are living in it initially, residential financing is typically the cheapest. I like how your goal is to rent it out and hold on to it as a long term rental and then repeat the acquisition process again. Can consider refinancing commercially and then structure it more as a business at that time in order to hold on to it if you need to meet the qualifications on the residential side again. 

How well are your numbers and what main factors were you considering in moving forward with this deal? 

Quote from @Blake Billings:

@Account Closed the entire home concept has worked very well, but it is more work and is not as easy to book honestly. The room we offered was a very nice room (as it was the master suite in my own personal residence). My take is that there is more demand for a low cost nice place to stay for a party of 1 or 2. Where as there is a smaller demand pool for a house that sleep 8 or 10 or 12. 

Overall it generates more revenue obviously, but the beauty of a house hack is that it is hard to fail and that was definitely the case when we were renting out the room. But a whole house has been much more competitive and requires a more disciplined system and approac 

@Blake Billings That's great to hear your perspective about it. I can see how it can be better in those cases compared to the bigger approach. 

House hacking and co-living spaces are definitely becoming a lot more popular due to better affordability. Also a lot of people who travel most of the times are because of work and are either by themselves compared to families that are taking a vacation.

Quote from @Stephen Jones:

@Account Closed

So you're saying have them carry the 375 and charge me interest on that money? Sorry, just trying to fully understand.

yes you could do that, at that point you'd just want to structure it with a promissory note & mortgage with them. Y'all will be able to negotiate the terms as well.

Yeah in this scenario you wouldn't really want to use a HML for a long time considering the costs and if you can work out other options. Even if you were you'd most likely want to refi & pay it off quick.

@Justin Shupe I'd definitely consider protecting your assets asap no matter what. Especially if you have 13 that are in your name. From a tax and asset protection standpoint, it'd be more beneficial to help protect you and help you save money over the long term. There is inside liability - what can happen at the specific properties, and outside liability -what can happen away from the properties on a personal level if something were to happen to you. There is a lot to consider and can be talked about a lot more. I'd highly recommend learning a lot more about it.

Whether cashing out of your personal home, would depend on a different number of variables - lowering rate/payment, what you are using your cash for - general purposes or buying more assets, cost, etc. Overall there are a lot of pros & cons in considering it and there are a ton of blog posts/videos out there - or you can reach out directly to a lender that can help go over your situation and run numbers.

Quote from @Joe Miller:

Are you considering a pocket listing? I just closed my first pocket listing this past weekend and it was a phenomenal experience. 

@Account Closed , I think that his advice is stellar. It is absolutely in his best interest to list with an agent. He needs to get his listing in front of as many qualified buyers as possible. 

I do not ever negotiate my commission. You are worth it. You got this!

 @Joe Miller Very true, a good agent is worth the commission. Granted if you are doing bulk business with someone can then start to consider. But typically most are still ok with the flat/normal commission!

@Justin Shupe Are you trying to figure out which option would be best? 

Are you trying to LLC the properties too or are they already?

Just trying to figure out more info & context for what you are considering.