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All Forum Posts by: Jonathan Chan

Jonathan Chan has started 27 posts and replied 114 times.

Post: Virginia Usury Laws

Jonathan ChanPosted
  • Rental Property Investor
  • Clermont, FL
  • Posts 125
  • Votes 66

Hi, I've been doing some research on the maximum interest rate allowable one can charge on a real estate loan. I've seen that 12% is the max, however, there are exceptions. If a loan is over 5K, is business to business and related to real estate, it can go above it. However, I don't see what I can actually charge. Are there any real estate attorneys in here that service VA that know what a lender can charge?

Post: When can I quit my W2?

Jonathan ChanPosted
  • Rental Property Investor
  • Clermont, FL
  • Posts 125
  • Votes 66
Quote from @Erik Epperson:
Quote from @Jonathan Chan:
Quote from @Erik Epperson:

Hello, new here. Currently waiting on hearing back on my appraisal for my first house I'm getting out of.
I want to invest my profit into 1 or 2 multi family duplexes.

I am curious at what income level based on rental cash flow i would need to still qualify for a loan. I have potential job opportunities else where but will purchase a duplex before thinking of leaving the area. I know once I leave my job I will no longer have that work history and steady income the bank expects to see. So at what point can I use my rent as "steady income?" I ask this because once I have enough for another down payment I will want to scale to more properties. 

I am in the Indianapolis Metro area. I can currently find multiple duplexes under 300k. I plan to rent by the room. And possibly convert extra space(dinning room ect) in to bedrooms. 
With the high cost of rent in Indianapolis (1000-1500 for a 1 bed room studio) i believe I will have allot of cash flow even with the current interest rates. I personally know several people paying $800-1000 for a single bedroom. And in 2016 I myself paid 750 to stay in a bedroom in a 4 bed house that was full. Based on the area,my rent alone was covering the mortgage, let alone the other 3 tenants. Ever since i lived in that house iv been dreaming of doing the same but it wasn't in the cards yet.

Also if there is any one here who invest in Indianapolis please message me!


 make sure you have enough active income to cover expenses. I thought buying 30 doors would be enough to replace my income. The problem is that if you have no other active income, maintenance turns into a burden. Have enough reserves and make sure you have active income. Don't think you're going to chill on the beach everyday with landlord income....unless most of them are paid off.

Ever try room sharing? Rather than renting a place for 1200 you can rent each room for 600. Thus taking a 4 room from. 1200 to 2400.

 I have not, but it's not my thing. I prefer being on the private lending side and then being a LP on larger assets. 

Post: When can I quit my W2?

Jonathan ChanPosted
  • Rental Property Investor
  • Clermont, FL
  • Posts 125
  • Votes 66
Quote from @Erik Epperson:

Hello, new here. Currently waiting on hearing back on my appraisal for my first house I'm getting out of.
I want to invest my profit into 1 or 2 multi family duplexes.

I am curious at what income level based on rental cash flow i would need to still qualify for a loan. I have potential job opportunities else where but will purchase a duplex before thinking of leaving the area. I know once I leave my job I will no longer have that work history and steady income the bank expects to see. So at what point can I use my rent as "steady income?" I ask this because once I have enough for another down payment I will want to scale to more properties. 

I am in the Indianapolis Metro area. I can currently find multiple duplexes under 300k. I plan to rent by the room. And possibly convert extra space(dinning room ect) in to bedrooms. 
With the high cost of rent in Indianapolis (1000-1500 for a 1 bed room studio) i believe I will have allot of cash flow even with the current interest rates. I personally know several people paying $800-1000 for a single bedroom. And in 2016 I myself paid 750 to stay in a bedroom in a 4 bed house that was full. Based on the area,my rent alone was covering the mortgage, let alone the other 3 tenants. Ever since i lived in that house iv been dreaming of doing the same but it wasn't in the cards yet.

Also if there is any one here who invest in Indianapolis please message me!


 make sure you have enough active income to cover expenses. I thought buying 30 doors would be enough to replace my income. The problem is that if you have no other active income, maintenance turns into a burden. Have enough reserves and make sure you have active income. Don't think you're going to chill on the beach everyday with landlord income....unless most of them are paid off.

Post: 15 unit asking 2.5m!!! Can a newbie do it?

Jonathan ChanPosted
  • Rental Property Investor
  • Clermont, FL
  • Posts 125
  • Votes 66
Quote from @Andrew K.:

I have been looking and found a nice 15 unit building in a solid neighborhood! Problem is I haven't done any deals yet. Going over how could I get this done? Any ideas?! Net income is around $120kyr. Rents are about $18k monthly. Does this seem doable?


 I wouldn't...multifamily is a team sport.

Post: LendingOne Fix and Flip Loans vs Capital Ton

Jonathan ChanPosted
  • Rental Property Investor
  • Clermont, FL
  • Posts 125
  • Votes 66
Quote from @Steve Linn:

Just getting into fix and flipping, so bare with me. I keep seeing LendingOne on Facebook and Google, but they require appraisals. How will appraisals work if the property is not even close to move-in ready?! I thought appraisals have strict guidelines. 

I see Capital Ton doesn't require appraisals for fix and flips, is this real? Has anyone worked with either company? What's a desktop valuation?

They give as is and ARV appraisals. There are lot's of HML out there with different requirements. I work with a lot of them. 

Post: Foreclosure Attorney Needed for Aberdeen, WA

Jonathan ChanPosted
  • Rental Property Investor
  • Clermont, FL
  • Posts 125
  • Votes 66

Are there any recommendations for foreclosure attorneys who service Aberdeen, WA? We have a borrower in default.

Post: HML Who Service Virginia

Jonathan ChanPosted
  • Rental Property Investor
  • Clermont, FL
  • Posts 125
  • Votes 66
Quote from @Andrew Zamboroski:
Quote from @Jonathan Chan:

Hi, I'm looking to connect with as many HML as I can who service HML.

Quality over quantity may help. What’s the project or projects?

I'm looking to lend on projects where HML won't fit.

Post: HML Who Service Virginia

Jonathan ChanPosted
  • Rental Property Investor
  • Clermont, FL
  • Posts 125
  • Votes 66
Quote from @Ryne Sweeney:

Hi Jonathan. What are you looking to accomplish? We work in VA.


 Looking to connect and collaborate. Sent you a connection request!

Post: HML Who Service Virginia

Jonathan ChanPosted
  • Rental Property Investor
  • Clermont, FL
  • Posts 125
  • Votes 66

Hi, I'm looking to connect with as many HML as I can who service HML.

Post: is an LLC necessary?

Jonathan ChanPosted
  • Rental Property Investor
  • Clermont, FL
  • Posts 125
  • Votes 66
Quote from @Jonathan Small:

@Brandon Morgan 

An LLC isn't always necessary, but it can be a smart move for liability protection and separating personal and business finances. If you're just starting out or doing small-scale deals, it might not be urgent. But as you grow, it's worth it for peace of mind. Always good to chat with a CPA or attorney to see what fits your situation!

I personally would put my properties in a LLC.  This gives me legal protection as well as tax deductions.  @Chris Seveney makes a good point that you need to consider if the loan and insurance is in your personal name or your LLC.  You don't want to give the insurance company any reason not to pay out on a claim.  You defiantly want legal protection as stated by @Max Wilhite

@Jonathan Bock is correct about keeping it simple.  It is easier said than done.  @Bill Hampton it seems we are both in Georgia.  I look forward to connecting.

@River Sava is correct that a LLC makes it easier to scale. Investment bankers are usually looking to lend to a LLC vs an individual.

@Jonathan Chan how much in insurance to you recommend for 1 rental?  How do you see this coverage increasing as he scales?

@Sarah Brown how many properties do you put in each LLC?  How do you determine when to create another LLC?

@Ashish Acharya I have found that I get better terms for personal loans. However, it is a lot more complicated to get a loan in my personal name vs my LLC. DSCR loans are pretty straight forward for my LLC. I have to provide 5 times the documentation to get a house in my personal name.


 I would talk to multiple insurance agents to get their recommendations because a lot depends on what he has in assets.