All Forum Posts by: Christopher J Woodland

So, I purchased a list of absentee owners and sent out post cards for the first time not really knowing what to expect. For all I knew nobody would call. I have actually received a lot more calls than I was expecting and often don't know which property they are referring to right off the bat. 

So, aside from the obvious answer of increasing my knowledge about each of the properties, what are some tips about how to take those calls? What information should I be trying to get from them on that first phone call? Should I be ready to make an offer right then and there? Any sort of format that I can work off of here would be appreciated. 

Best Regards, 

Christopher Woodland 

So would you basically write up a contract that includes an amortization schedule and essentially says "here is what my first and second years' interest is expected to be based on my current financing terms and I want you to front me the money for 2% in year one and 1% in year two'?

So, I've come across 2-1- rate buydowns a few times recently. I understand the general concept of it don't really understand the mechanics of how it works. I was hoping someone could explain how you work this into a contract and how it actually works. 

Thanks in advance. 

Christopher Woodland 

Thank you Greg. The vinyl tile is what it is. 

Thank you for your help. 

So, I came across something that I am not particularly knowledgeable about: asbestos.

Looking to buy a rental (not contract yet) turns out there is asbestos under the carpet. Supposedly its contained and not of any real threat as present. But, being that I really don't know much about asbestos, I wanted to see what kind of experiences and advice y'all might have on the topic. 

Best Regards, 

Christopher Woodland 

Thank you all for the advice. Very helpful. 

Christopher 

So, I am looking at doing my first rehab. Are there any tips for estimating how much the rehab will cost? Would it be frowned upon by the seller to get some contractors out to take a look at it and provide estimates before purchasing it? If this would be acceptable, what would be the most proper way to handle this?

I like the contractor estimate idea because I know when I was a commercial banker we'd commonly ask if people had estimates for the renovations or improvements that they wanted to do on a particular project or if they were eyeballing it. So, I'd feel even more prepared to take my packet into the bank if I had that estimate because people very commonly tend to underestimate the cost of the renovation. But, I am not sure how to approach that with a seller prior to either offering or closing on the property. 

Thanks in advance,

Christopher Woodland 

What banks would those be, if you do not mind me asking. I have not seen too many savings accounts increasing to those yields just yet. I assume they'll eventually get there, but I guess I haven't seen them yet. 

So, this is something I feel I should know, but am not 100% sure about:

So, once you have an LLC formed to hold your real estate and start accruing cash which will eventually go toward your next property, can you invest that money in the mean time in CD's in say a TD Ameritrade account. I already have a decent amount of stocks and bonds in a couple TD Ameritrade accounts and see where you can open accounts for your LLC there. But, I was not sure if once you declare the purpose of your LLC is to own real estate if the IRS or some other entity would frown on there also being an "investment account" in there.

My idea comes from the fact that you can find short-term CD's paying 4% interest at TD Ameritrade (far beyond what my credit union or bank pays currently). So if I had, say, $10,000 accrued in my LLC bank account, I wanted to make sure it would be ok to leave maybe $5,000 in just straight cash for any repairs or maintenance that pops up this month or next and then putting $5,000 in maybe a 6-9 months CD and make a little bit off of it without getting sideways with the IRS. I know LLCs can buy stocks and bonds but my concern was with the stated purpose of the LLC.

Best Regards, 

Christopher Woodland