All Forum Posts by: Jeshua Patrick

@Joshua D. remember, there is a reason many do not mix business with friends and family. If all went well no one would likely ever find out but if they didn’t and you had ignored the law completely it could go very badly for you. Not worth the risk.

@Joshua D. As others have said you have two problems to address. The first is with the state. Most states require a brokers license to manage other people’s properties. You may be able to bypass a lot of time requirements if you can show that you have met those requirements through self-management and they allow that to count in your state. You would still have to meet minimum and ongoing education requirements.

In your situation you may be able to bypass this altogether by taking some form of an equity stake in the properties and having your name added to the deeds. The other benefit to this would be inheritance. If your father were to pass, the properties would simply become yours without the mess of family, creditors, or probate court I believe.

This leads back to your second problem, family. No matter how you slice it your father would still expect a say in what occurs with his properties. Depending on how you were to structure it you may have a mess to unwind if he became unhappy with how you managed his properties. If you actually got your brokers license and it went well it could also be just the boost you need to start a property management company that you could ultimately hire in people to do the jobs you don’t want to do.

@Mark Faustrum thanks for the link to the HUD FMR. It looks like the guaranteed portion would be $950/mo. Since I am asking $1200/mo a Section 8 tenant would have to chip in the remaining $250/mo.

@Matthew Olszak your explanation on how to calculate income for qualification purposes is really helpful. In this example, since the tenant portion of rent would be $250/mo you are saying that they only have to make $750/mo to meet my 3x income requirement correct?

I am converting a Townhome I own and lived in for the last 2 years into a rental. I have had several potential tenants ask if I accepted Section 8. I have told them that I am not set up to do so yet; however, I am considering looking into it. I have one major concern though. If I accept Section 8 tenants would I have to lower my income standards for non-Section 8 applicants in order to maintain compliance with Fair Housing Standards?  

@Isaura Orellana the biggest reason you got so much pushback was because your post came across like a pushy sales gimmick and all you’ve done since is call names or hammer the same sales shtick over and over with questionable evidence to back you up. I was in the sales game for over a decade and when someone leads out with that much hype I run the other way as fast as I can because 99 times out of 100 I’m about to get burned.

@Dmitriy Fomichenko I definitely understand the risk of being in the market which is why I want to shift away from the market long term. Short term I need to learn a little more and develop a game plan for tenant screening, property management, and even potential lending from the account. PM me so we can talk more please.

@David S. have you ever had the need or desire to sell any market based investments in your brokerage account to free up funds for other types of investments? If so, how quickly were those funds available to you in the account? I'm asking because I have funds in a 401k from a prior employer that I want to rollover to a SD Solo-k but not quite ready to start buying RE and don't want to have it sitting earning nothing as I'm currently averaging 13% ROI with 12 month returns as high as 20%; however, it would be nice to have the funds positioned so I can access them quickly if I need to pull the trigger on a deal.

@Thomas D. I think this is a time to stop and reflect on a few things. First, your conscience is usually a good guide. If it feels wrong there is a good chance it is and even if it isn’t you probably shouldn’t do it. Second, it should be revealing of the kind of person your uncle is. If he’s willing to defraud the government who’s to say he doesn’t take the money and run after you refinance, assuming you can successfully, leaving you holding the bag and seriously underwater? Worse, he might even try to set you up as the perpetrator and himself the victim. The fact he even suggested this should be a HUGE red and cause you to run from any deals with him as fast as you can.

@Anthony Gayden you make a great point about controlling interest regardless of names on title due to marriage. My first home was purchased prior to me getting married but my wife gained a legal interest in the property as soon as we tied the knot despite not being on title. The laws do vary a little on this but I wouldn’t see it as a dealbreaker. Some states even require both parties to be on title and/or on the loan unless a special instrument is signed relinquishing ownership rights by one of the parties.

@David Martin Jr I think the real question you should be asking yourself is why are you concerned with how much they have it under contract for? Are you trying to maximize your profit at their expense? You might tell yourself that you are just making sure you don’t overpay but are you really? The numbers either work or they don’t. Offer what works and, if they say no, move on to the next deal. If they say they have more in it than you offered and you don’t feel you can come up any more then they may have overpaid and it’s time to thank them for their time and walk away. If it’s a simple assignment, as others have said, it will come out at some point in the process but don’t make a big deal out of it if they are making more than you expected or think they should. Remember, you agreed to the numbers.