All Forum Posts by: Frank Del Corso

My parents are selling a second home they own and seeing what I am doing in Real Estate they want to loan me some money to buy a rental property so that they can eventually leave it to me and my 2 siblings. They trust me to do the right thing and have suggested they just loan me the money at 0% interest but I cannot figure out the best way for me to acquire the property, manage it and eventually transfer ownership to my 2 siblings once my parents pass. I have told my parents that I would manage the property and take a 5% cut of the rent to do so. The property would be bought and owned by an LLC that I would be the sole member of for now. Maybe I am over thinking this but I cannot seem to grasp how best to accomplish the goal my parents have while also making sure that I am compensated for my time. Any thoughts on how best to set this deal up from the get go?

Thank you Michael! 

Thanks John and Randy, I will look into those books. 

Do either of you have a good lender that you've used to purchase homes in your IRA?

This sounds like an interesting strategy and I want to learn more about it. Can anyone recommend a good book or other resource that dives into using a self directed IRA to buy & hold Real Estate?

Kyle, I re-zoned a single family back to a duplex in 2021. I learned that if a home was once zoned a duplex does not necessarily mean it can be easily converted back. The fact that the previous owner removed the 2nd kitchen automatically reverted it back to a single family according to the city. I then had to get variances for the conversion to a duplex as if it had never been one before. I ended up having to hire an architect and fireproof the place, which were many thousands of dollars of additional costs. It also took several more months to complete and get the necessary inspections so more holding costs too. 

Don't assume that just because it was a 5 plex in the past that it can now be easily changed back. Talk to the zoning officials in your city first. Good luck!

Hello Mary, It is a good market but yes very competitive in most cases. I would suggest joining the Lehigh Valley Investors meetup to network. This is where I met a few great people who helped me get my first deal here last year. Everyone is super helpful and I highly recommend surrounding yourself with people who do the thing you want to do. It has worked for me so far and of course you'll need to work in order for the goal to happen. Deals on the MLS are highly competitive and go for above asking, all cash and many will waive all inspections, which I don't recommend when starting out. However, there are wholesalers in the group who find deals off the MLS which can work for you. You can also use a site like Prop Stream to get a list of existing home owners to call directly to see if they are interested in selling. DM me if you'd like to connect & good luck!

Hi Giacomo,

I am just wrapping up my first deal in Bethlehem and have gotten to know the area pretty well over the last year. I would love to connect and see if we can help each other out with our next properties in the valley.

Generally speaking the South side is C/C+, Downtown and the West side are mostly B/B+. 

Looking forward to a conversation soon,

Frank

Great info Will! I completely understand the value of getting the job finished and moving on because I am still stuck in this reno now and can't focus on finding my next deal until it is settled. I did find a new contractor and he has already filled out the permit paperwork and we plan on submitting it this week! 

My new guy is someone a family member used and has been happy with, the guy literally texted me last night at 8:40 pm a video of him putting the permit application in my mailbox at the property. I now need to work up the detailed scope of work and get that over to him for sign off.  

I am also glad that you found another good contractor Will!

Thanks Bruce, good info! What I got from the contractor was sparse on details. Live and learn I guess.

Thanks Doug, I did speak with my agent yesterday and told him what happened. He was surprised and will hopefully not recommend him anymore but they are long time friends. Going forward I am definitely not going to use a contractor that hasn't been referred by someone that actually used them before. In the meantime I found an electrician and plumber and am trying to make my emergency theirs in a not too pushy way.

Has anyone used a Gantt chart with their contractors before where you lay out every detail and a timeline for each item in the list?