All Forum Posts by: Josh Calcanis

I keep seeing a lot of information on setting up LLCs and how it can benefit your business, but I have a question in regards to logistics. I have seen some investors quit claim a deed and put the property into the LLC, but I was wondering if it was possible to purchase a rental property outright through an LLC. My lender said it's challenging to find a bank willing to do something like that.

@Dimitri Lopez I love it. I get that excitement from a lot of the podcasts. They have such a wide range of REIs on there, it makes me feel even more empowered to keep pushing.

@Ryan TaylorI had saved about $120,000, but that was before I found all these creative ways to finance and I had worked for 5 years out of school. I felt good in the college market because UCF was on track to be the largest school in Florida, I knew the area, and although the target wasn't college kids, the good thing is that you can get the parents to co-sign (so there isn't as much risk).

It really depends on what you want to do with your first investment. Personally would say save up some more or get a partner involved so you can get some experience with someones money.

@John Kent If the property isn't free and clear is there any kind of risk to the buyer or seller?

Could you expand on imputed interest?

Thanks @Erin Legler

@Theresa Kraa I'll definitely try to find you next time! Enjoy Saturday! Definitely post up any clarification if he expands on some of those questions!

I can't wait to apply. I'm 2 years into REI and just posted up in Success Stories. BP has been great for me and an excellent way to spread the word of the life changing powers of REI.

A short year and a half ago, I was dreaming of investing in real estate. I spent time living in both Los Angeles and Seattle for work and had been spending time looking at properties, but never pulled the trigger. Partly because I was afraid and partly because I felt I didn't know enough. I went to Europe in 2015 and met someone who was in the same boat. After speaking with him and finding BP, I decided it was time to really step up and take the plunge. After realizing Seattle was not the market for me, I decided to go to something I knew... Orlando, FL. At first I needed to find a trustworthy, property manager that would act more as a partner in this business. It took a few phone calls and two meetings in person before I finally settled on one. 

My first SFH was purchased and placed tenants within a month. Purchased in September of 2015. We had to lower the rent more than I had liked to get tenants in because it was close to a college and it was in the middle of a semester. Once the year ended, the lease was up and we bumped it back up to $2100. Tenants were in place within 1 week. Things I would have avoided there was doing little research on what the HOA actually covers and actually getting a property with a pool. Although the pool hasn't been too much of a problem, it's still an expense in terms of keeping it clean and operational.

My second property was closed on prior to Christmas. It was a triplex and was part of an estate sale. Owned by the two children that wanted nothing to do with it and because of that left the rent far below market. All three tenants were paying $890 and market rent in the area was $1300. There was a little termite damage, but nothing that was compromising the structure (super common in Florida). We got the property with closing costs and repairs paid by the owner. 

When I first looked at income from both properties, the total was $400-500 in cash flow. As of right now we are sitting at cash flow (after debt service) of $1400-1500. 

Although I'll be looking for another job here shortly, I was able to leave a job I wasn't happy at, travel to South America, explore the states, and spend some time working on the properties because I was getting paid by the time I had put in. Also coming out of a sales job, I had plenty of savings to float the properties in a bad situation and continue to live if I wanted.

This time away from a 9-5 just gave me a taste of what REI can do for the everyday person and I can't wait until I'm really free of the rat race! It so much easier to express how amazing REI is when you've lived it.

BP,

This is an open question to all realtors, REIs, wholesalers, rehabbers, and every other entrepreneur that is somewhat involved in RE.

I wanted to put this in off-topic because I want this to be an open discussion on listing some of the biggest problems we face throughout our day to day.

The reason I ask is because myself and two partners are just finishing up with a proof of concept directed at realtors and after meeting with a few really got us thinking about some of the other issues we could possibly address.

@Joshua Dates Could you go into a little more detail on a wrap mortgage? What exactly is that? Someone would still be getting hit with the interest correct? Also list source is a type of website or specific company?

@Daria B. where exactly would those records be located? Somewhere on the county records?

@Dina Lewis Thanks! Is there a limit where you find it's a good time to transition over to Quikbooks?

My CPA experience wasn't bad because of the Accountant. It was more on me learning what to keep track of and how to organize it all. Spent a bit more time with the CPA than I should have because I wasn't as prepared.

@Christopher Cousin Right now I'm just trying to find something to track expenses, mileage, and separate by property or unit if necessary.

Only month old thread, so I'm hoping it's still got some life in it.

@Erik Eisenman you brought up Quikbooks. Are there any other programs you'd recommend.

Just did my first full year of expenses with my CPA and it was a blast *sarcasm*

I used excel sheets for the mileage logs, misc expenses, HOA fees, etc. There has to be a better way. I'm only at 4 units right now.