All Forum Posts by: Jerome K.

Unless it’s clearly evident that the damage was a result of the tenants actions or negligence, I would say this expense is the landlords responsibility. 

Commercial loans would be a good alternative to hard money. Much lower rates, more favorable terms, and they are more interested in the rental income vs expenses of the property than your income. I find smaller/local banks easier to work with than the national banks. Just follow the links in their website for commercial loans 

It’s a weighted average, depending on each of the loan balances.  It’ll fall between 4.5 and 5.5. 

Just curious, why have each property owned by a separate llc?  Are you planning on having different ownership mixes between you and your partner for each property (50/50, 60/40, etc)?  

I read the response as 

“I don’t know, and this isn’t our area of expertise. Your question would be better suited for an industry expert”.

I’ll bite on this .... again. I guarantee you @Joshua S. did not read this thread entirely. These are all points that have been proven with actual math to be false (details worked out for both scenarios). “Front end interest” is not a thing. If it was, then why isn’t the first series of payments 100% interest?  The interest you pay on payment 1 ( or 2, 3, or x) is a simple calculation of the current interest owed on the outstanding balance. 

If this heloc strategy is such a gem, might I encourage you to pay off your mortgage real quick swap your mortgage for you heloc. Run that loan scenario and see how that works out. 

 What difference does it make if it was 1x month deposit, 2x, or 10x?  A deposit is a deposit, and still belongs to the tenant (minus applicable deductions).  And after a ten year tenancy, I doubt you will find any valid deductions, unless the tenant did some malicious damage.  

My opinion, no need to make this process more complicated and more expensive than it needs to be.  Cash/Deposit for Keys is the path of least resistance. 

So...the SEC is not actually after you?

Money laundering?  Tax evasion?  Seems sketch to me. 

I second what @Blair Poelman says. You mentioned you want to “continue to build equity through the debt”.  Your collective rent (top line revenue) is 19,200, assuming no vacancies. Factor in other expenses (repairs, taxes, insurances. The interest alone on $100k is $25k (with no principal pay down).  At that rate, you have  money pit, not an equity builder.