All Forum Posts by: David Butler

@Jason Bohling  Everyone is entitled to their opinion so I appreciate yours even if I disagree. "Simply recalling the details" included statements about having the money to purchase 2 years later and never could have had that if she had to pay off debt.  That is recalling the details AND slightly callous in my opinion and if Diem was in the role of creditor, I doubt she would have been excited about how things played out.  Again, my post is less about the guest and much more about why BP would even get in the radius of this and open themselves up to criticism.  I can totally see how a rookie, in the name of the podcast, could hear this and determine that defaulting is clearing the slate, offering an opportunity to save and start over in 2 years.  I don't believe that is the message we should be sharing.

Hello Carlo. Not a dumb question at all IMO. To date, I have many rentals in my own name (with a liability umbrella policy) as many financial institutions are leery of lending to an LLC but now that I am doing more DSCR, I have created a couple of LLCs as the lender only wants to lend to an entity, not individual. My wife and I are the owners in the Articles of Incorporation and I am the registered agent. I have not set up a trust--mostly because it seems like a lot of extra work and expense but mostly, I don't know the benefit of the trust in ownership of an LLC.

Just listened to episode 449 of the Real Estate Rookie podcast with Diem Martin.  Her story of success is inspiring and she has certainly sacrificed in building her current portfolio.  I am bothered by the casual nature in which Diem speaks about her bankruptcy in that it seems to be one of convenience rather than necessity.  I have every empathy for folks who are hurting especially from instances that are from outside of their control, but filing bankruptcy to get out of debt that she chose to sign up for and promise to pay for the sole purpose of getting ahead faster (her story, not mine) seems less than ethical and Bigger Pockets promoting it is questionable.

Hello Angela. Congratulations on your first post and evaluating deals. In order to offer solid advice, I need more information. What are your plans for this house? Flip,LTR,STR? Zenda is a very small town so I question the demand for folks wanting to live there so that effects both flips and LTR and is a far enough distance from Geneva Lake that IDK the demand for STR so all of these things must be considered. Someone else has warned about out of state investing and I would be very careful as you are quite a distance away so there is increased danger due to distance. I am assuming you will need a downpayment and your scope of work is more than 30K so where does the money come from? I don't want to pour water on your interest, but I don't think this is the deal you are looking for because: 1. problems with all of the things you can do with the property 2. a general lack of reserves 3. long distance. I am a local real estate investor with experience and a contracting network and I wouldn't take this deal on unless there are details that you are not sharing that makes the deal better than it sounds by your post. I wish you all the best in your real estate journey!

I include language in my lease allowing me to change the furnace filters (with 24 hour notice) which allows me to enter each of my rentals once a quarter.  If the furnace is separate from the unit, I also have an inspection clause allowing me to inspect for necessary repairs (leaky faucets/toilets), etc, etc quarterly.  This has worked out well for me, but you do have to be close enough to stop by.

 Are you replacing just the units--no duct work, line set, etc?  One of my subs just replaced his AC condenser--just the unit, no line set, etc and it was $2650 as a "softball coach special" so it is pretty easy to guess you will be in the 3K range.  Keep in the mind the size of the unit--2 ton, 2.5, 3 all cost something different.  I replaced a furnace at a rental with in base model, I don't recall the BTU or efficiency off the top of my head, but it was $3450 so I would guess you are going to be upwards of $6500-8K depending on sizes.  I was told by my HVAC gut that the government was going to be requiring AC units to be butane based refrigerant replacing R410A so the prices were going up 10-15%.  I don't recall when this takes place or if it has already gone into effect.

Welcome Quan!  You are in the right environment to learn all things real estate.  What are your real estate goals?  If I can help, please let me know how!

Welcome Mike.  Wishing you all the best in your real estate journey and if I can help, please let me know how!

I'm interested in more educated reponses than I can provide. Will a D&B number allow your business to be treated as its own entity when applying for credit as it is my understanding that the LLC is still relying on you personally if you are the owner of the LLC. Interesting...