All Forum Posts by: Alex Olson

@San Patel Is it fully occupied? Who is managing? What about deferred maintenance? Looks like a great deal considering the market but make sure your broker/agent gives you insight into it form an honest perspective. 

@Alex Murphy You will want to set up a simple LLC regardless if you put it in your personal name of the name of the LLC. If you qualify for a 30 yr fixed/secondary market loan... Do it..but the title will be in your real name. You can still use the LLC for tax purposes. I would find a small business tax person who is cheap that can guide you.

@Jon Abadia I would consider what the remaining items are. If you love the house and know it will build wealth, then it may be worth it to just get the deal done. If not, move on and never look back.

@Bruce Martin I am sure someone has had success with investing in condos and making money off of them, but I have not. They don't appreciate well, don't rent all that well and the association of the building could change rules in an instant and you (investor) has no control over it. I would rather pick a different market than be stuck investing in condos. But, maybe in a market like Denver it is a great investment?

@Luis Roman First thing you want to do is to try to find a house or property that has been on the market for a long time. Then approach the seller directly and ask if they would be ok with a full price offer as long as they cary back the note for a 5 year period. Then, have a title company set it up for you. You can read the book on OPM that Bigger Pockets has. They have tons of strategies in there that don't get very deep but give you a checklist of where to start. Also not sure if you own a house but you could leverage that if you feel comfortable with it. 

@Johnny Wolff You are on the right path. Keep going - network, talk, speak, and take great notes. You will meet so many people it is important to remember. Make sure you go to REI meet up groups. Don't be afraid to tell people you are new but you are an expert in xy and z or whatever the case may be. Don't give up. It will be worth it.

@CJ S. I know this may sound obviously, but reach out to all of the local community banks in Tulsa. When a bank says that no, they don't do portfolio loans. Make sure to ask who does or who you can try. And don't get discouraged, you will find one. Also sounds like you have a hard money loan. They may know someone in the area. 

@Chandler Miguelgorry I would speak to an inexpensive attorney or friend to figure out the best way. I would also suggest that you create 3 LLCs - 1 for you, 1 for your friend and one for the property. You would then have your LLC and her LLC own the property LLC. You would then be Tenants in Common (TIC). This way, if either wanted to sell and exchange into another property using a 1031 exchange with their of your proceeds, you could do it on your own and not have to bear the tax consequences. Again, find a creative real estate attorney and spend the few extra bucks to get it done for the long term. You are already ahead of the game by house hacking so make sure you continue that way with the proper set up.

@Shafi Noss I am no expert. If you are just starting out, first stop is to buy the book on Real Estate Loop Holes as part of the Rich Dad Poor Dad series. Its invaluable. Then, network to find the best real estate CPA in your area. Sit down with them and hammer out all of your questions. Taxes are (dare I say) complicated and everyone has different scenarios - not a single 1 are the same. 

Investment Info:

Single-family residence buy & hold investment in Kansas City.

Purchase price: $235,000
Cash invested: $47,000

A large single family home converted to five bedrooms. Located less than a block from Rockhurst University. Used as an AirBnB/STR.

What made you interested in investing in this type of deal?

The location of this home is hard to beat. Located next to a well known local university and close to another, the expansion in this area is tremendous. The long term demand is very high, especially as the cost of tuition rises and dorm living continues to evolve.

How did you find this deal and how did you negotiate it?

This property came back on the market. I was watching it closely because I had a similar property near by that I was under contract on. One my first property fell through this one happen to come back on the market.

How did you finance this deal?

I financed this deal using traditional portfolio loan with a local bank and for the equity I used a line of credit in which I leveraged another investment property towards.

How did you add value to the deal?

I added another bedroom and positioned it for AirBnB so that rents could be maximized.

What was the outcome?

So far the house cash flows really well and there is a demand for short term rentals this close to universities.