All Forum Posts by: Jesse Waters

I agree with @Wayne Prentiss it looks pretty solid, I would bump CapEx, Vacancy & Management up to 10% each. Even if your property manager charges 8% a month, I would assume that they charge some sort of placement fee.

Best of luck.

It differs state to state, but each state has things that, if discovered during the inspection that the seller can be compelled to fix if you ask them to, or they can always tell you to take it or leave it.

My first question is always about the investment numbers.  Does it cash flow now?  Can it be improved to cash flow more?  How close are you to the end of the life cycle on the HVAC, roof, siding etc?

RUN.

No.  Your credit report only shows your debts not property owned.  The loan will still show up. When you do a loan application it will ask for real estate owned and percentage.  I have not come across an application that ask for ownership entity, at least not on residential lans

@Heera S. The types of questions that you will want to ask vastly depend on the area of REI that you plan to focus on. If you are focusing on Buy-n-hold/long term rentals then you will want to ask your lawyer about asset protection plans & tax strategies to your accountant, while asking your Realtor to use her network to bring potential property leads.

So, the real question is where do you plan on focusing?  From there you can find the right questions that you need to ask relative to that area. 

Best of luck.

The seller's mortgage isn't really your issue, if you negotiate 4.5% with the seller with a payment of $450, then you pay $450 and they are responsible for the rest.  If I was that seller I wouldn't take that deal.  So, there isn't really and difference between the seller's old mortgage, or a new re-financed mortgage.  The only difference is what the seller pays out each month on the mortgage and what they keep.

I would want to make sure that the seller gets enough to cover their note & keep some cash to make the deal worth it for them.

Just my thoughts.

Best of luck

So, I have all my properties in LLC even though I personally hold to mortgages. I use grand deeds, if I remember what my lawyer said, a quit claim doesn't give me as many protections from past title issues & the title insurance doesn't continue.

I have also talked with a friend of mine, who is also my mortgage guy, he pretty much said that as long as I keep paying on time, they don't really care who holds title, they hold first position mortgage, and should it go into foreclosure, then they get the property regardless of its in my name or my LLC's name.

I use the LLC for a few things: By operating the LLC I have gotten credit directly for the business with out my name on it. It is easier to track ownership between me and my business partner. We have greater liability protection should things get really bad, and as insurance goes, they just list my LLC as an additional insured on each property.

I agree with @Kyle Smith don't tell the bank.  Yes, it could trigger the due on sale clause, but if you pay on time you should be fine, especially since you own the entity that owns the property.

Just my two cent's worth.

Best of Luck.

@Jason Burr I found a few properties on Loopnet.  I sent you a PM with a good commercial broker's email address.  Give him my regards.

Have you gone to any of the REIA meetings in Columbia?

@Paulus Anglada ,

I'm an investor in Aiken with properties both here & in best Columbia.  If you are looking for a good PM, I will be happy to share mine.  I'll shoot you a PM with her contact info & web site.

Have you looked in the upstate Greenville, Greer etc?  I found a bunch of multi-family properties a few month ago that I really liked, just couldn't work out a deal with the seller.

Welcome,

Jesse