All Forum Posts by: David Lao

When I applied for my LLC's commercial loan (which my LLC is now paying interest on) with a small bank, I had to fill out a personal financial statement because my LLC didn't have a high enough income and I am the personal guarantor.

 Derek - It seems like it depends on what you really want. I'm in a similar situation. For me, return on equity and long-term wealth building is more important. In my experience, my cash in the bank yields nothing compared to my cash in my rental properties, so unless I have another rental property or investment, I rather just keep the cash in the rental. 

I have 5 rentals and one more in contract. I have a full time job, average 2.5 hours of commute for my day job M-F, but I don't really get tired because I out-source everything (plus it's all out-of-state anyway).  Thank goodness for property managers!

Other fees may include your share of the title transfer tax and in some places, if it is a foreclosed home, you might have to pay for sewage compliance certification. That could cost several thousands, so check with your team to figure that one out.  I'm speaking through experience with my Pennsylvania rentals. 

For me it depends on what part of REI. For me, the eye opener was Rich Dad, Poor Dad by Robert Kiyosaki. For tax, it is Tax-Free Wealth by Tom Wheelwright. For investing in multi-family residences, it's The ABCs of Real Estate Investing by Ken McElroy. There are also books on estimating rehab costs, property management, and introductory books as well.

Long-Distance Real Estate Investing: How to Buy, Rehab, and Manage Out-of-State Rental Properties by David Greene is one you can start with. I just got my copy and am on page 70 out of ~285. So far so good (as for my out-of-state rentals). 

Eric, I have read and recommend you to read the ABCs of Real Estate Investing by Ken McElroy, a Rich Dad adviser. It's focused on MFR rather than SFR. I'd spend the $15 because I think it's more worth you time digging through the internet for free, but scattered, information.

I agree with Antoine. If you don't use an FHA loan, you might be able to go below 20% if you call the right lender. A smaller bank or credit union is typically more flexible, so I'd try calling several of them if that's what you need.

Likewise. I'd go but will be out of town. - David