All Forum Posts by: Johnny Duke

Hey @Mark Tiersma! Welcome to bigger pockets, and nice work offloading that debt with your home sale! I know that had to of felt good. I think you have come to the right place for information. As people have mentioned, the Bend meet-ups are a good place to both network and learn from other investors/industry professionals. I hope to see you there at some point.

Take care, 

Johnny Duke

@James Galla I apologize. I was responding from my mobile and didn't check the original mortgage amount. $17.7k is correct. 

I now see the error of my ways though. Seems that most hard money lenders (which is the scenario I was calculating for) lend on interest only payments until the end of the loan. I missed that toggle in the calculator which is why I was ending up with 19k per month instead of $2,000.

Thanks for the help,

Johnny

@James Galla right that makes since. It essentially recalculates every month as opposered to annually. 

My big issue is that the calculator states that 19k is paid out every month. 

That $19,000 is the interest paid over the course of a full year, correct? Which should give me a monthly payment of ~$1,600. Is this a software issue? Or am I’m missing something obvious?

I ran some very simple numbers as a test to get acquainted with the fix-and-flip calculator. I seem to be messing up on the loan section. I have it at 100% LTV ($200,000) at 12% and amortized for 1 year. The result is a $17,769.76 per month. I must not be understanding the amortization aspect? I assumed that is the life of the loan, meaning it should be $24,000 for the year, $2,000 per month, and a total of $8,000 for the calculated 4 months of holding. What am I missing or not understanding?

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Happy Halloween everyone!

Johnny Duke

@Josh Garner nice! We are still getting organized and set up here, but when the time comes I'll be reaching out to you about renovation loans and other options. 

In the meantime, would you give me some information on what you would be looking for in a borrower? And what sort of terms you lend on? 

Feel free to send me a message, or if it would be easier to do over the phone let me know!

Thanks, 

Johnny Duke

Hello everyone! I'm specifically looking for bank referrals for the Bend Oregon area, but would also appreciate anyone's insight into what to look for in a good, small business bank.

We are starting small and don't need much now, but as we plan to grow and expand it would be good to work with some personable and knowledgeable people familiar with investors and builders.

Right now we are just looking at construction operations. We plan to get into rentals, but that will be a couple years down the road. Does anyone in the area recommend a bank or credit union you are working with? Someone that offers construction and renovation loans? Someone that has worked with you in the rental market?

I have a recommendation from @Grayson Graham that First Interstate is good here, and plan to reach out to them, but would really enjoy hearing from others in the area (or not in the area). Bend, Redmond, Sisters, Sunriver etc.

Thanks,

Johnny Duke  

@Scott Smith and @Brian Bradley 

I met with a CPA yesterday and essentially just got more or less of another overview. He wasn't familiar with the s-llc, so I was hoping to ask a couple more questions of you two. 

I know you are both attorneys, and your time is valuable, so if this is advice that would be better served through a phone call please let me know. I would be happy to talk about rates for your time and expertise. 

That being said, here are my thoughts:

1) If I were to go ahead and change my entity type from sole prop to LLC in Oregon, would it be possible to transfer to an S-LLC (based in Texas) later on when I have more assets and need protection? Or is that just an extra step and a waste of time.

2) Is there a benefit to having my Operations LLC (construction company) based in Oregon since it's my residence, area of work, and where I'm licensed?

3) Would it make sense to have the construction company LLC in Oregon, but all property holdings under an S-LLC so that rentals and fix-&-flip properties are all separate and protected? Or would that just make tax filing more complicated than necessary?

4) Are there downsides to the S-LLC? It seems like a great deal. I think my only hesitation is setting up my construction company as "out of state". I'm hesitant because I don't know what the implications may be, if any.

Again, please don't hesitate to send me a message if it makes more sense to answer these questions over the phone. Thank you for taking a look at this post. 

Johnny Duke

We are planning to be there!

@Sam Hopkins I wasn't aware of that and it's good to know. I don't have any interest in having stock or regular meetings at the moment.... Thanks for the info. 

@Scott Smith Listening to it right now! I appreciate you taking the time to chime in as I'm sure you get a variation of this question on a daily basis. I'm going to focus on the podcast and hopefully gain some perspective on the possibilities. 

I am a little concerned about meeting with a CPA that doesn't know all the options, but is still confident in telling us which direction to take. I don't want it to be a case of them "not knowing what they don't know", but I suppose that will be my job to vet them out. I'll make sure to bring up these options with the CPA today and feel things out. 

Thank you to everyone that has responded. I sincerely appreciate the guidance.

Johnny 

@Brian Bradley Got it. I've made a note of that to discuss with the CPA. Thanks again; you've been very helpful.