All Forum Posts by: Dominick Johnson

Purchase in your name and then do a quit claim deed to the LLC. Not sure what you mean about paying 1% to transfer. Your down payment will be 20% minimum for conventional loans for investment properties.

Sounds like you need a new real estate agent, they should be helping you navigate this whole situation. You are asking for a $70k credit for the pool, of course the seller is going to do their own inspection before responding. Also, a 5% earnest payment is very high, you risk losing a lot of money if you back out past the inspection period.

Anything not netting a negative cashflow is profitable, but only you can determine how much profit is worth your time and investment. I personally set a minimum of $300/month cashflow for me to consider purchasing a property.

Same factors will help you determine whether to do a flip or LTR. Flip will take you probably 6 months of hell and you have a huge learning curve being your first REI, which is high risk for minimal (if any) profit. Rentals can be renovated in a few weeks and if renting doesn't work out you can likely sell it quickly in this housing market with lack of inventory.

Best of luck!

Stick to your application requirements to avoid potentially being accused of violating fair housing laws. With that description, surely they don't meet one of the standard minimum requirements that should be in your application:

no evictions, no felonies, minimum credit score, minimum monthly income 3x the rent, positive references from landlords and employers, 2 months paystubs.

If they meet all of those requirements and you don't want to approve them, wait until you have a more qualified applicant and use that as your denial reason.

Pay off the mortgage on my primary residence. Refinance my HELOC to increase line of credit and purchase two more rentals.

1. What is your method of investing/saving for your children?

2. At what age can I open a Roth IRA and pay my kids an income? My financial advisor says we need to wait until they are 6 yo to not get audited. Every source I read and watch says to start when they are born. They are young now, so we would pay them for modeling for marketing pictures for my wife's business as a realtor. When they are old enough I will pay them to help with work on our rental properties. Appreciate the feedback!

Welcome to BP. As stated, you are confusing private lending with seller financing. I find it hard to believe you wouldn't qualify for a conventional loan based on your stated credit score and income, which can require as low as a 3% down payment. Student loans are not counted as debt when qualifying, so your DTI ratio is low (assuming your only debt is rent payments). Sounds like house hacking would be the best place to start if you are wanting to get into investing and need a small down payment.

Here is everything you need to know about infinite banking that a so called “financial advisor” won’t tell you. Anyone pushing this on you is a life insurance salesperson and getting a commission from it. Fire them and get an honest financial advisor. If something is this complicated to explain and understand, you won’t even know you’re being ripped off. 
https://www.personalfinanceclu...

Cue all the salesmen crying “this article is not comparing the same policies! you have to  max fund it and get the lowest LI policy!”….see lie #10 of the article. Why don’t you advise your clients about a self directed 401k (solo401k)? Because you don’t make commission on it, that’s why. Go ahead and comment back salesmen, I won’t read it.

There are lenders who do HELOCS for investment properties. Not all lenders do, so it might require a bit of searching, but there are posts on here that list national lenders who do. Try searching "HELOC investment property" in the forum. The same work around can be applied to the title if needed.

Quote from @Joshuam R.:

@Dominick Johnson

Do you think that is solid to say if the long-term goal is to keep all properties, that go ahead and transfer your SFH properties to your LLC, once you gather a few then go for portfolio lending / refinance to liquify your equity?

That’s my strategy. The reality is that mortgage rates aren’t dropping back to 3’s and 4’s again for a long time, if ever with all this government spending. So it probably doesn’t make sense to refinance the conventional route on a 5-6% interest rate and pay closing costs and reset your equity, which equals less cash flow.