All Forum Posts by: Corey Nielsen

@Dewayne Stiers

Is that different than a HELOC?

What bank are you going through?

I’ve had no luck so far and my deadline is closing fast.

Thanks for the response!

Hey guys!

I have a deal in the works and a tenant who has already signed a 5/yr tripple net lease.

I’m looking to tap into the equity I have in another rental that is owned free and clear.

The home is worth around $70,000.

I would like to connect with someone who would be interested in doing a HELOC or first position mortgage for 60-80% of the home's value.

Any leads would be greatly appreciated.

The offer I have for the new rental needs to be accepted by the 30th of this month, so I’m on a bit of a time crunch to make something happen.

Thanks in advance! Keep rocking those deals!

Why not look into becoming an agent? If real estate is what you love and you are currently between jobs, this seems like a logical course of action. (Also, not having money is no excuse to delay when it comes to real estate investing).

I’m new myself, but if I could give my two-cents worth, I would recommend setting it up first. Buy the properties in your name and make income deposits under the business account. You can always quit-claim the property to the business later, but financing is nearly impossible unless you have a large amount of initial capital.

Also, start out as a sole-member Llc. This will keep taxes simple. Do not confuse this with a sole proprietorship.

I recently formed an Llc and was wondering if anyone has advice for building credit? What should I look out for? What routes have the best results?

I’m looking into a credit card, but I’ve also heard charge accounts are good. Should I try to get a small line/loan?

What’s your experience been like?

Thank you!

@Christian Rojmar

Thank you very much!

I will do some checking around and update my analysis appropriately.

@Christian Rojmar

How would I come up with a reasonable amount for CapEx and insurance for analysis sake?

Is there a formula for this or do you shop around for policy quotes? It’s the little things like that I am unsure about.

I have re-run the report with 10% vacancy, 5.5% interest rate, and 11% management. I also put in an ARV of $150k for an approximation.

https://www.biggerpockets.com/calculators/shared/1483440/94854583-e624-400d-96dc-d42b2a6d4865

With the 33%, I was trying to represent 1 unit empty since it’s a 3-plex. Now that I think about it, you’re right. Should that be around 10% then?

All utilities and lawn care/snow removal are done by tenant. 

i came up with 7% interest based on my personal mortgage for my house being at 4.25%. I thought an investment property would be higher than this.

My father is in Illinois and is helping me manage the property there. He is currently looking at options for pulling out the equity in that, but it is my understanding that a cash-out-refi is typically after 6-12 months? We’ll see what he comes up with though.

I will re-run the numbers as you suggest. Is there anything else worth including in the analysis? Thank you for the input!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I have been in touch with the listing agent for this property and was actually the first to view it. The original list price was $125k, but the seller has offered me $10k off or $10k repair credit. He has stated that he would prefer a cash sale and does not sound open to any sort of creative financing ( I believe he may have his mortgage bundled with a second property).

This property is currently at 100% occupancy. Three units at $500/mo each.

Is there another way to approach this or should I move on?

For background information, I have a current FHA mortgage on the home I live in for $146k that I purchased in June of 2018 and access to $10k cash.

I just closed on a house in Illinois last week for $4,300 with an as-is value of $35-40k. This is rented out as of Dec. 1 for $475/mo with a term of 3 years.

Any advice is most welcome.
Thank you,

@Todd Powell you are familiar with the term “trust, but verify”?

I do trust my father, but I also understand that he is not infallible. However, thank you for your response.