All Forum Posts by: Gary McKissick
Gary McKissick has started 6 posts and replied 21 times.
New Investor who will be purchasing their first multi-unit (2-4) this year. I had a question about my LLC. A little about my situation, I live in Denver but will be investing out of state in Dallas/Ft. Worth due to a number of factors. I have multiple questions about forming my LLC:
1.) Create in state I live or state I'll be investing in (CO vs TX)?
and
2.) Since I am starting out small do I need to get a Real Estate Attorney to help form my LLC or is it as easy as going to the local county clerk or wherever and giving them the $25ish to form it? I know in CO you can actually do everything online through the secretary of state website. Also, can you restructure an LLC later as my business grows for better asset protection or just create more.
Post: Using Family Members for loans

- Denver, CO
- Posts 21
- Votes 8
1.) Talk to my broker and he told me different. Says if you use private money (parents) for down payment you have two options:
1.) Parents co-sign put down down payment and have first lien on the property if everything goes completely wrong.
2.) Parents can loan you the money then you have to wait I think he said 3 months so when using that money for down payment its not flagged as borrowed money. With these options how does the bank know if you will be paying them back or not?
If this is flat out wrong then maybe I should find a new broker :)
5.) What is the rate for investment properties?
7.) What is the lowest conventional loans will give you for investment properties?
9.) It is 2 duplexes so 4 doors comes out 150 a door and your right with say 15% for vacancy rates maintenance cost it would be closer to 100-125
I do appreciate you taking the time to kick my butt in the matter. I think maybe I am getting a little ahead of myself and should continue reading and learning to understand all aspects of what my main goal is. Thanks for the response and have a good day.
Post: Using Family Members for loans

- Denver, CO
- Posts 21
- Votes 8
Thanks for the response @Dion Depaoli.
As far as pieces or how I would structure it I'm looking to get a 2-4 unit property with tenants in place already from costing 75-100k (DFW area).
Parents would put down down payment (20%)
Mortgage Broker I am in talks with would lend the other 80% over 30 years at 3.75-4.5%
I would attempt to finance closing costs over the term of the loan pending property appraises out.
About me:
make 50-60k a year at my day job
Debt to income ratio is very low (car payment for 250 a month and I rent for 925 a month and that's it as far as debts)
Credit Rating is in the mid 700s
Quick Sample Deal I've found:
Two Duplexes next to each other: Asking 55k each highest I would offer is 85% of that or a nice round number is 100k with closing costs, fees, etc
Gross Monthly Rent= 1775
Loan from parents for 20k @ 7.5% over 10 years= 238 monthly
Loan from lender for 80k @ 4.5% over 30 years= 406 monthly
Taxes and insurance = roughly 350 monthly
Property Mgmt = 175
Tenant pays all utilities
Comes out to +606 without taking into consideration misc repairs, expenses. I guess another question I would have is what sort of misc repairs, expenses can you use to help calculate other monthly expenses when doing property analysis.
Post: Using Family Members for loans

- Denver, CO
- Posts 21
- Votes 8
Hello all,
I am in the process of purchasing my first rental unit and my parents have agreed to help me with the down payment on it. Doing some reading and it suggests creating a promissory note set up properly so I can deduct the interest on tax forms. Is it as simple as that, creating the document and signing? I'm sure I'm missing a bunch of things here, so if anyone can provide some insight or point me to a good article/blog about the subject that would be helpful. The loan itself is probably going to be 20k loan @ 7.5% over 10 years.
Post: Newbie trying to figure out deal analysis

- Denver, CO
- Posts 21
- Votes 8
Thanks @Jay Orlauskiy @Brett Russell
For my first deal I probably won't be doing any creative financing, and can only put down 5-10kish (finding a decent amount of properties under 150k and that'll probably be my range). Who should I go to first find a mortgage broker or can a real estate agent help me with a lot of that? Thanks again guys!
Post: Newbie trying to figure out deal analysis

- Denver, CO
- Posts 21
- Votes 8
Hey everyone,
I have spent the last year or so reading all the real estate material I can, continue reading and listening to the podcasts on here, but I'm trying to figure out my next move. Trying to invest in 2-4 unit multis for monthly cash flow
I have started scoping out properties and trying to figure out deal analysis. I think I know most expenses and have heard general rule of thumbs from here that 50% of income will go towards expenses. Does this 50% include loan repayment or no?
Once I find a "supposed" deal what's my next move? Contact the property to figure out more precise numbers?
Also I have no team or financing in place. Is this something I should get into place before I start contacting potential sellers?
*DISCLAIMER*
I live in Denver but want to invest in Dallas/Ft. Worth
Reason:
Seems the market is much better and higher cash flow more realistic
Use to live in Dallas and still visit one weekend per month
GF lives in Dallas and her mom is a property manager and Dad has a renovations business so they can help with various tasks.
Any thoughts/discussion/experience on investing outside of where you live would be helpful too. Thank you.
Post: New Member from Denver

- Denver, CO
- Posts 21
- Votes 8
Oh wow, I was looking at some properties this morning and didn't even realize the $200+ monthly fee for the HOA. Ugh that sure is a deterrent and really hurts potential cash flow. Thanks for that tidbit of info.
Post: New Member from Denver

- Denver, CO
- Posts 21
- Votes 8
Thank you for that info. Where can I find details on the monthly meeting? Here on BP or is it through meetup or something? Thanks again.
Post: New Member from Denver

- Denver, CO
- Posts 21
- Votes 8
I see you are in Denver. Any recommendations of groups to go to or people to talk to? I have been to a few ICOR events and Im going to a IRROC beginners meeting in a few weeks. I'm new to Denver so don't know too much about the market but any information about it or what strategies work well here would be appreciated. Thanks.
Post: New Member from Denver

- Denver, CO
- Posts 21
- Votes 8
@Anson Young @Joe Fairless I think to start off I'm looking to buy and hold. Maybe a condo or two, or a few multiunits (2-4). Once I get some passive income going start focusing on wholesaling.
Thank you everyone for the kind welcome!