All Forum Posts by: Caleb Mclamb

@Andy Kaye I plan to buy one quadMFR in the next few months, I wont choose an official business model until i talk to a cpa or real estate lawyer and have more properties. thank you for the advice

@Andy Collins "They do not want you to borrow the downpayment, in fact you will be ask that specific question in the mortgage app,,are any of th e down payment funds borrowed" -that is very nice to know thankyou.

@Laura Williams 

they do 100% for great rates...but only for owner occupy loans and only SFR and duplex

thank you both! 

@Laura Williams Im lucky because Ive been with my bank for years and they do zero investment property financing, but they are very friendly so I can feel free to ask them any questions at any time because theres no pressure since i cant get a loan from them anyway so they are happy to help. 

@Tony Gunter I have a property in my sites that would be perfect for increasing the value, the only reason im looking into this strategy is to try to use an investor's money as a downpayment but be able to pull their money back out and pay them with interest within a year or so to make it attractive to them, but if its not a solid plan thats fine it was just an idea. 

Eventually I hope to be doing this enough to make enough money to justify setting up an official business for it. LLC seems to be the answers, I just thought there might be tax benefits to a C-corp not available to the other types in order to shelter the cash flow from taxes.

Thanks guys!

thank you guys for the input, Im just going to go talk to my local banks branch manager at the beginning of this week. Im sorry but im still not completely understanding, I was under the assumption a refi was to pull out your 20%down payment and add that money to the end of the loan but i guess i was completely wrong. Im sure I must sound really stupid but im tryin to learn so thank you all for your feedback!

@Laura Williams  I think so, so if i buy it for 100 (80 financed and 20 financed as down payment) when i go to refinance they will only finance 80% of it all over again. 

if that's right then why do people always talk about refinancing? Is it because they are always buying properties that will appraise higher than when they bought it due to repairs?

@Laura Williams  ok, I must misunderstand it. I was under the assumption the whole point of refinancing was to pull out the equity you put in as the down payment, is that not how it works?

@James Wise at this point yes it will just be me. I am married if that matters. 

Hello BP, 

Ive done some site research and see related topics but not this question.

I am researching using a conventional loan for an investment property with approximately 20% down payment. That 20%down payment will be made by a local investor who has never invested before.

Can i pull all 20% back out to pay them (plus their interest) after the seasoning period or am I being unrealistic?

ie could i offer them something like 10% on their money for a one year investment or is it harder to refinance than you would think? I deffinitely want to build strong relationships and not "play" with other peoples money without full confidence.

Thank you

Caleb Mclamb

Hello BP, 

I am currently building a business model and researching types of organizational structures and their implications to real estate, the question is what business structure do you use and why? LLC, C-Corp, S-Corp, Sole Proprietorship just to name a few.

Im reading a book on the tax advantages of a C-Corp but it states they don't apply to real estate without going into much further detail. What structure has the most tax advantages while protecting its owners and allowing for the use of investors? 

Thank you for any input

Caleb Mclamb