All Forum Posts by: Bill Gulley

Holly stuffing!

Same BS still surfaces with newbies.

Charles had valid points, the rest is pretty much dependent on where you are. no, VA or old FHA assume-ables are not guaranteed nation wide, see limits on VA by region.

Don't forget your appraisals when transferring notes, however most values have increased so that shouldn't be an issue.

Now I realize why I left and got into compliance matters. there is a cesspool here of bad and illegal information. Best of luck.

Seriously, I didn't even read the replies above. After all these years, the basics still apply. 

The reason I left is because of all you short timers wanting the get rich quick scheme. I left because most of you want something for nothing or, at least for very little.

The other side of this is the scammers who want to take you for a ride making money off of you with classes, programs, classes, loans or other support, you poor ignorant children.

I've buried 5 "wholesalers" in my area, trickery and the B.S. you pull on the public is worthy of nothing short of jail. 

You're lying if you say you have a buyer, or that you will buy a property and you don't have the ability to do so yourself.

For those too lazy or too stupid to pass a real estate exam and get a license, get off the block, you need to find a morale ground to base your business on. Being a deceitful  SOB isn't a winning option. 

I'm pretty sure, even today, there is no one on this site that is up on the compliance issues of RE more than I am. Ignore me at your own risk. Search for my past posts, learn real estate functions and law, be a honorable broker and make money honestly, otherwise, folks like myself will bury your cheating businesses when you cross one of us. 

It's really a pitiful thing to watch.  

Welcome! In this market of rising rents for everything attached to dirt and with 25% down, I'm wondering how you are trying to compute cash flow or ROI.

Let me tell you, interest rate are not high, not at all! At 5 to 7.5% investors should still be killing it! Perhaps most here weren't born in the 80's, that was high interest, 12%+ and I still bought RE! Remember, as rates go up prices go down. 

The mid-west is the most stable and lags in price behind national trends. In the mid-west, I'd suggest you stay in cities of 250,000 down to 100,000, markets are generally more stable, should have moderate growth. Good luck :)

 New anything is always better unless it is an antique, valuable art or a classic car. Not sure what you call "house hacking" I think of rehabs which doesn't really apply to new construction. I suggest you find a reputable property manager and cut the deal for them to assist in new construction oversight with your contractor. After the first year you can take over if you want to. 

Suggest also you find areas you're interested in, locate newer units of interest, get the address and learn how to look up properties at the Recorder's office, see who owns them. Dig and find the contractor. When you find that contractor you already know what kind of work they do, what they build, where, just ask how much. Before you contract, then get referrals by others, if all is good, jump in.

 Gotta say, with his goals and grades that is bad advice. I have heard gurus give that advice, boiled down to buy my classes and follow me, not saying that is what you have in mind. He will learn valuable skills that drop outs will take decades to learn if they ever do, regardless of the money made. There are lucky folks who make great money without much of a formal education, it could have been much easier and much more if they had other business skills. 

Don't get me wrong, I'm not saying college is for everyone or even required, but when you're rounding the top of the class I'd say he needs to pursue his real education. 

Real Estate isn't a hot market all the time for any strategy, accurate forecasting isn't taught by RE Gurus, but it is in college. Construction management will go on as long as man keeps building, RE "investing" could be obsolete as we know it today in 20 years, even 10 years. Consider AI and institutional investors, regulation changes as well, it is possible for strategies used today to be highly illegal in the future.

We all have hind sight, students today will be in a purely global economy, what we did in the past is not very "forward thinking".

In fact, I'd go further for him to consider Engineering at A&M, Engineering and Law at Purdue! He says he wants to own a development company, a retired developer friend who did exceptionally well has his estate well over a hundred million. He didn't build houses he built shopping centers, hotels, resorts and apartment complexes. You don't ever do that from the skin of your teeth trying "no money to play with investor tactics" starting out cold calling homeowners. 

Sorry for the rant, but that suggestion to a student who has saved like he has, earning the grades he has, just pushed the wrong button.

Quote from @Adam Simpson:

Most lenders will not let an LLC obtain a mortgage so I advise my clients to buy in their personal name and the note is held by them personally. The title should then be transferred through a quickclaim deed so the LLC now is the owner. As you accumulate wealth I recommend getting a Revocable Living Trust set up which owns all your rental LLC, retirement accounts, etc. Attached is a great example of how this looks!

 Adam, mortgages with a due on sale clause will be triggered by that transfer. That can be avoided when the transfer is made in connection with an estate planning purpose, the other exception is as stated above by Drew. 

To others: All State and Federally Chartered Banks are commercial lenders or may lend to businesses, they may also lend to individuals. Credit Unions are restricted from commercial lending, generally, that can be accomplished depending on the State and Charter as well as the purpose for which they are organized. Mortgage Companies can be chartered as a commercial or personal lender, most all are simply originators of secondary market loans made only to individuals. Commercial type mortgage brokers are usually using private funds and they are not in the Federal Reserve System.

Residential mortgages, like Fanny and Freddie, FHA, VA are not made to any business entity, they all fall under personal credit lines. USDA are the only secondary market loans which may include business assets, such as equipment and stock as additional collateral but are held, not really sold to an open secondary market, depends on the program and area.

@Juan Ayala

 Use the Japanese method, save it all then only spend what you must, much easier! 

Just rent it from your neighbor with an option to buy, simple. Qualify later on your terms. Good luck :)

Another option is to file in NY and have it own the LLC's in TX and FL.

However, if you are properly insured, what advantage do you think there is by placing one property in an LLC in two different states. Might be best to leave sleeping dogs lie.

Tip: Don't get caught up in the "Liability Trap" that says property must be in an LLC, that's what liability coverage is for.

Good luck

 Can't help on tech platforms, this is the extent of my technological advancement, for one deal until you get what you need, I'd have my bank do it (they owe me favors) otherwise, check a local Title Company, they do that all day long.