All Forum Posts by: David Rhodes

Brian is right conventional loans will have better rates/terms. 

When we first got started we didn't have good credit and were still able to get commercial loans.  We called over 40 banks before we secured our first commercial loan.  We use portfolio lending banks for our commercial loans.  Portfolio lending banks are normally your local banks that keep their mortgages in house.  In other words, they do not sale the mortgage paper.  Your Corp Banks ie; BOA, Wells Fargo, Chase.... create loans/mortgages then package them up and sell them off.   We have found it much easier to build relationships with local portfolio banks then Big National Banks.  

When looking at rental property always buy for cash flow and you will be fine.  Just make sure you figure in all the real expenses.  Hope this helps

It can be done, but the key is your intention at the time you acquired the replacement property. ... If so, you may be able to re-characterize that 1031 exchange-deferred gain on investment property into gain on your principal residence and enjoy some or all of the $250,000 or $500,000 exclusion on its sale.

Check this article out it should help.

https://farr.com/1031-exchange-into-principal-residence/

Hi Ben,

First off about your sheetrock peak problem, just sanded the peaks down and add texture as needed for the repairs.  You don't want to get into taking everything back to studs.  That will get costly quick.  

It is hard to tell if this is a deal or not.  I try to take all the emotion out of deals.  It is all about the numbers.  If the numbers work then I will consider purchasing the property.  Hope this helps. 

what are you financing? 

Hi Daniel- You are right to think about asset protection now during your growth period. When we started we went to a few classes on asset protection. We decided to use LLC and Trust to protect ourselves. I am not a professional asset protection person and here is what we do. We have a "Mother" company LLC. We then created another "Holding Company" LLC that the mother company owns and we are managing members of. Each of our Holding Companies holds up to 10 Properties. We use Land Trust to further protect ourselves. If you haven't heard of a land trust I would suggest you read up on them. Hope this helps

Investment Info:

Single-family residence buy & hold investment in Huntsville.

Purchase price: $35,000
Cash invested: $34,700

This is a buy and holds rental property where we used our INFINITE RETURN strategy. We walked away at closing with $24,910 in our pockets. Now the tenant is paying the mortgage and helping us build our wealth.

What made you interested in investing in this type of deal?

We are always adding to our portfolio of rentals.

How did you find this deal and how did you negotiate it?

A wholesaler brought us the deal. We negotiate a price that worked for me, the wholesaler and the previous owner.

How did you finance this deal?

Private

How did you add value to the deal?

We did a fabulous rehab and gave a couple a nice place to live near downtown Huntsville

What was the outcome?

Great Rental

Investment Info:

Single-family residence fix & flip investment in St Petersburg.

Purchase price: $145,400
Cash invested: $50,000
Sale price: $258,000

We purchased this home on the county foreclosure auction. Purchase $145,400 Holding cost and rehab $50,035 Total all in: $195,435. It sold for over the asking $258,000.

What made you interested in investing in this type of deal?

We invest in flips to make our living money.

How did you find this deal and how did you negotiate it?

County Auction

How did you finance this deal?

Private

How did you add value to the deal?

Did a very nice rehab. Helping the community and the new owners.

What was the outcome?

We help the community, sold a family a nice home and made a Profit.

Lessons learned? Challenges?

I had never had a Terrazzo floor refinished. I learned that some of the stains are just not coming out and they give the floor character.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My agent Nicole Rhodes sold the property in one day. Limelight Home staging did the staging. Arnold Novak took the pictures.