All Forum Posts by: Chris Davidson

Figure out the amount you need and that will help you. If you are looking for 25-50k does a friend have a HELOC or LOC they want to make a little more money on? Friend tired of the market, and wants to diversify a bit? Hit up some local REI groups and see if there are any players in your area. Trying to get six figures will be a different audience over low fives. If you are looking for larger amounts if you find a group with self direct 401k could source larger amounts. Also find investors exiting the market as should have capital looking for a home.

Best of luck!

 What do you need or want? You mentioned your 60, while the return on equity is low does that really matter to you and your plan/ goals. If you want to boost the return on the equity. I would look at pulling some equity out and picking up some other turnkey rentals that way when it is time to leave the property behind who ever gets it is at the stepped up basis and has a A class property in a A area. What ever their needs with the property it will be easier to offload it vs something larger. Being a triplex means it opens the door to many more buyers than 5+ units.

Do what makes you happy. Cheers and congrats!

@Nash Mittelman I would look at a HELOC, a private money loan, maybe borrow a bit from a 401k, some on a card, and some on a LOC. Get a second once finished and pay off while retaining the 1st position.

Cheers!

@Deodat Ramdat 1k on the right number at the roulette table.

Private money, 401k loan, HELOC, title loan, and ETC...

Many places to find money some of them aren't the best or smart ideas, but figure out your plan before you buy it. Looks like you are in NY, a property for 25k is probably going to need some work.

Best of luck!

@Kevin Vincent it will depend on the type of loan. Reach out to your lender and see. Most likely yes. Also it doesn't have to season for two months they just have to source it, and if its over two months they usually don't have to.

@Shane Smith Not familiar with flipping franchises, but if you are needing marketing and lead gen this could be helpful. However if you need help with rehabs and contractors it doesn't sound like this would help you one bit. Usually most franchise models in other business environments have the whole package. From what you mentioned so far I don't see what they are doing other than giving you leads and CRM. That can be a tough part, but isn't close to half of the process. I'd ask for referrals, and reach out to some local folks and see what is working and not.

Best of luck!

@Joe Lijoi expenses is a broad word. Things that will matter are when was it put in service, and what are the expenses. Repairs can be treated differently than replacements. Good thing is you likely have a year to figure it out. 

I would talk to who ever does your taxes/books. If that is your self reach out to someone who is an expert and can give you advice on your situation. You haven't mentioned who the owners of the LLC, does the LLC have other operations, etc...

This is likely why you are getting different answers as it really all depends on the factors to you, your ownership in the LLC, the LLC's operations, and the property.

Wish could of given you a yes or no, but hopefully that helps you get pointed in the right direction. And honestly the IRS website is superhelpful if you just read instructions to the forms.

Cheers!

@Patrick F. if you aren't going to set up an LLC I would just look at getting a different account or card to handle transaction that way come tax time it is already seperated out, and you can make reports easily. Your PM will likely have everything prepared for you, and issue you monthly statements. Sometimes less is more. However if you are wanting to grow this to a business it could be beneficial to starting a company, and getting business accounts to start getting seasoning and some history for when you get to that point. Banks like to lend to a business that have been in business longer and have a track record.

Cheers!

@Richard Valdez I'd look into buying don't get caught up on if you use VA, FHA, or Conventional. If you are wanting to get into RE just start. Buy something where you can add a little value with some elbow grease that way if the market slides you aren't wiped out. If you get a SF and want to use the VA for a MF later then either refi or sell the SF. The nice thing about investing is you can adjust it. Don't let making the perfect choice get in the way of starting down the best path.

Side note if you are looking at moving in 2 years build that into your plan to where you buy well and will make money, or will be able to sustain it as a rental what ever floats your boat.

Cheers!

@Maile Winward Help them by finding someone who does this. It will depend on the area if you are in Hawaii and the time share is start there. But if you are looking for help offloading a timeshare in North Dakota (not sure if they have them)it may be a bit different of a process. 

If you can't find anyone go backwards and look into buying them on a secondary market, and you will meet the folks who are selling them.

Cheers!