All Forum Posts by: Reed Starkey

@Ruslan Laranjo There are a lot of good tenants that make less than 36k/yr

@Jeff S. I suppose I was looking more toward a revenue share loan.  Similar to what is found on localstake.com.  I did tell her I was looking to raise money.  I need a larger bank roll to flip more houses at a time.  This was the method she had suggested, although I haven't written off other thoughts at the moment. 

I spoke with an attorney today (not an SEC attorney) and I want to see who can comment as to the truth of what was said.

She told me in the state of Michigan, I am allowed to raise up to $1,000,000 from residence of MI and only MI.  I can advertise to them, and do not need to know them.  If it goes over $1mm, or has one out of state investor it becomes federal, and different laws apply.  I would still fall under the same rules as I cannot promise certain returns etc. 

I try to read every post I can on private lending, and have never seen this mentioned.  Is it really this easy?  I don't mean to second guess an attorney, but I also don't want to go to jail either.

What are your plans with the property?  I look for different things for a flip then I do a buy and hold.

Sounds like the hard money is your best option. They are expensive, but it puts you in the game. If they are great deals, wholesale them. I don't see many other options, as you have already found cash partners, and they are telling you what they need for the risk on your property, and you didn't like the terms. If you have 900k in properties that are unleveraged, look to a portfolio lender that will lend to an LLC, and not based on your personal credit.

Maybe time to sell one of those properties to free up some seed money.

How about Real Estate Acquisition Specialist?

This strategy is used by many investors for buy and hold for a couple reasons. The first is asset protection. If they get into a bind with one property, they can simply bankrupt that LLC and move on. Another reason is if you sell the property to another investor, it is easier to sell them the LLC that owns the property than transferring the property. This way the property never changes owners, but the company that controls the property does.

As for the flip, I don't understand the advantage. Especially if you are talking about CA. To my understanding it is $800 to form an LLC there?? IMHO he/she would be better off with a good umbrella policy and purchasing under one LLC.

It is possible that he/she is buying REO's as some of the REO's only allow you to buy a limited number of properties. Then you would need another LLC to accomplish this.

Disclaimer:  The asset protection is a touchy subject here on BP.  There are other ways to protect your assets.  I was simply stating a possible tactic being used.

I called the most popular health insurance company, and they quoted me around $250 for just me.  We will be adding my wife and son at the end of the year, and it was reasonable.  I was paying nearly that when I worked.  For the short term, if you leave your job, they have to offer you cobra for the remainder of the year.  This will be at the same price you paid from your employer.  So you might want to time your leaving after the new year starts. 

Just a side note, my LLC pays the insurance premium as a benefit to all members. This means the premium is paid with pre-tax money.

@Pyrrha Rivers

 I feel with the colleague request, if there is no message, then they are not serious enough.  I will also ignore almost all requests without a complete profile.  I don't have time to associate with people who are not committed.  There are plenty of people kicking tires in this business, and I don't have time to waste on them.  On the other hand, I love to help anyone out that has a desire to grow in this business.  You may not have experience or money etc. but at least show you have the desire to put an effort into it.

As for followers, I just feel that is a compliment, so I welcome all of them.  A note would just be icing on the cake.

@Jay Hinrichs If you look at someones profile, you can see all of that info.

I hardly think the 18 and 16 years does justice.  I just hope some investors got some of their money back.