All Forum Posts by: Jacob Sampson

Yep, the title company should be very familiar with that process. We always use a real estate agent so they handle that part of it but if I am remembering correctly the by default the title company will put it in whichever name the buy/sell contract is in. So in your and my case the buyer on the contract is always my LLC. Either, way yes this is a very common scenario.

2600 - 30% (vacancy, maint, and capex) = 1820

1820 - $1200 (estimate of what your PITI will be for 75% of $238k) = $620 in cash flow or $310 per door.

Not bad at all.  As long as they aren't in a crappy area I would say you have a good investment.

You are pretty much there. My business partner and I are 50/50 ownership stake of our LLC. We split all expenses and profit 50/50. The bank won't loan the LLC anything. The LLC will own the property, meaning be the name on the title (if you want it that way). The bank will require that all partners personally sign for the loan. So the LLC owns the property and you guys will personally own the debt.

are you saying you get $2500-$3000 in monthly income from this property?

This advice won't be super helpful either, but I personally hate the whole appraisal industry. It's total bullsh!t. Why do I have to pay $500 to find out a SFH is worth, to the penny, exactly what I offered. I am the worlds best at offering exactly what a property is worth and simultaneously the worlds worst investor. I simply am incapable of finding a deal. I always pay what they are worth. It's maddening.

I have gone to my local bank who I have a long term relationship with and told them that I was not willing to pay for appraisals anymore. They conceded and I don't pay for that crap anymore. At least when we are purchasing our standard SFH or duplex. If we step out of our lane and go after larger deals then we still do.

At a bare minimum if we want honest, objective appraisals the bank should not share the purchase price with the appraiser. 

Ahh, I didn't put 2 and 2 together.  I didn't realize you were taking money from the fixed accounts.  It's probably a reasonable move.  For me personally, I want to continue to grow my traditional retirement accounts along with real estate so I wouldn't do it.  But thats just a personal want.  I think mathematically it makes sense assuming you can get a better return over the next 20 years than it will get if you move it back into the market. 

Yep.  It is always a good time to buy.  The price you pay is what makes it a good or bad deal.

As stated above, if you have a tenant in and your purchased correctly and have true cash flow you should be fine.  Also, have reserves.

All my leases auto roll to a month to month lease, but I would probably proceed like normal.  about a month out I would send them the new lease with the rent increase.  Let them reach out and negotiate.

I purchase for cash flow so the value of my property at any given point doesn't really matter to me.  Was this a flip or a buy and hold?