All Forum Posts by: John Kesner

@Account Closed

Also not an entity expert here but I have an NV LLC and it has pro's and con's. My understanding is that if go the LLC route you should have it in the state you are doing business. Some states will not recognize an out of state LLC and you could lose some of the protections that make an LLC worth while. Entity's are also public record and searchable online (at least in my state). You will need to research deeper to find out how to hold an LLC and have your identity concealed.

Another option is using trusts. I’m not sure on the details here or even what type of trust is best for your situation, but this is a great option for protection (1 trust/property) and also concealing identity. 

You may want to compare the pro's and con's of LLC's to trusts (of the appropriate type) and see which is a better fit for you.

Sam Leon I agree a crappy threshold gives a bad first impression. I think spray paint will hold up ok. The options are limited and the issue is color. You could use appliance paint, truck bedliner or that roll on bathtub paint, but the color options are really limited. If it were me I would use this, https://duplicolor.com/product/wheel-coating Just make sure you prep it according to the directions.

@Angela Yan

Try Robert at PMI. He attends the local reia meetings, really nice guy.

http://www.renopropertymanagementinc.com/

Good luck!

@Paul Allen

My wife and I run our personal accounts completely merged like you. It works for us. All our spending is done on credit card and paid at the end of each month. Credit card companies have great online services that make tracking your spending very quick and easy.

@Trina Walker

So there are 2 trains of thought on this.

1. Try to learn everything in advance (which is impossible). Try to speed the learning process up by paying someone to teach you everything and hild your hand through the process. Then (after you have spent a large amount of money, spend more money buying and flipping a property.

2. Join your local REIA meet some other local investors, read a book or 2, talk to some agents and banks (mostly free). Have some agents set you up with auto emails of newly listed properties. Run those properties numbers through a deal calculator (like the one BP has). This will give you a feel for the market. Then use the money you could have spent on FB to buy a property, do a flip and possibly make a few $$. Even if lose some money you will learn way more than any course or book can teach you because you will have had a real experience. If you are ready to spend $50k+ on a course then theoretically if you were to lose less than that on your 1st flip you would be way ahead of the game and you would have a real deal under your belt.

Good luck no matter which way you go!

@Jesse Scott

What does your ideal tenant look like? Given the neighborhood, unit size, quality, parking, yard, school district, walk ability, pets?,  price point, commute to empolyment centers, etc, who do you think is likely to rent the place?

Try to figure out what demographic is likely to be interested  in your unit, then you will have a better idea of how it should be built out. 

Know your customer and you will have a better idea of what your unit needs.

@Jordan Coates

Was the property owner occupied?

I've heard agents say that an investor owner may have more leeway on disclosures. They haven't lived in the property (or at least for some time) so they can't know the home as intimately as if they lived there.

I think it is very common for people to pull this kind of crap! I had a house under contract and the inspector found an abandoned oil tank under the front yard. The oil tank check box was marked n/a on the disclosure sheet. I personally feel the seller had to know it was there and was trying to pull a fast one on a buyer. I walked over it because the seller would not have it removed and there is a TON of liability with them. 

That said many owners are just clueless about their property. In your case maybe the A/C went bad this winter and the owner hadn't turned it on yet. The outlets might just be ones they didn't use. Leaks and toilet issues are pretty tough to say you didn't notice but possibly??

The point of due diligence is to verify that the property really is what they say it is. What you have turned up is very common. The good news is you have a new negotiating point. Try to make them pay or discount the sales price.

Hi @Thomas B Miller!!

Welcome to BP!! 

You could always start a group! It's pretty easy to do between BP and meetup.com you should be able to get the word out to interested folks in Elko.

I love Elko and its surrounding area. I hear good things about the real estate market out there. Good job base as long as the price of gold is up!!

If your ever in Reno, hit me up, I'd love to hear about Elko's market.

-John

@Khari Harper

One option would be....

Get to know an area that has homes in your price range. Maybe some of the suburbs of Philly would work for you. Find an area that has a good job base for blue collar workers. Then find a rent ready deal below market value that cashflows. The cashflow will make it so you can hold it indefinitely and the equity will give you a way out if you need it.

Call lots of banks, I know there are some out there doing 10% down on investment properties. That way you can buy up to $100k and still have some cash for reserves.

Scott Pyrcz Lots of folks talk about the "due on sale" clause. My research has concluded that in rare circumstances they will threaten the clause if you don't switch it back. Not a big worry like some make it out to be. Ask around at your local REIA, I'm sure most will agree that this almost never happens. Banks are in business of making mortgages and collecting payments, they don't really want to own real estate. There are some other things that are annoying about LLC's though that you don't hear talked about much. If you get some equity on this property you put into your LLC and want to do a cash out refi. You will need to transfer it back to your name first and there may be a waiting period before a bank will refi it. I have talked to banks with up to 6 months of wait time. Also be careful about the actual transfer. People talk about "chain of title" being very important in getting title insurance. What they mean is chain of title insurance. If there is a transfer without title insurance (quit claim deed, just like everyone will tell you to use to transfer to your LLC) the "chain of title" can be broken and title insurance could be a problem later. Just be sure to use a title company when you go in or out of your LLC.