All Forum Posts by: Jonathan Roveto

Again, it's not about getting the data. The question is, given a target list of addresses/people, what is the best way to reach out? Postcard-sized yellow mailers, full-page letters in real envelopes, throwing bricks through their windows with my picture on them...etc? :)

 Hmm, I wonder how much those lists would cost. I actually already data mine my target county's public records for homeowners with equity, and I could easily re-run the analysis for Seniors who have owned their house forever. I guess my real question is what means should I use to reach out to these people, assuming I already have a list of say, 500 target properties.

Hi all, I'm wanting to test the water with house flipping in my area. I already own 4 properties as long-term buy and holds and have a W-2 job, so I have sources of income. With this in mind, what are some effective ways of finding flippable houses that aren't exactly gut jobs? I've been thinking of mailers, but I don't know what gives the most bang for the buck (and the second I started researching, I got bombarded with those little yellow card mailer ads). I'm wary of foreclosures this early and would want to wait until I've flipped a house or 2 that I knew what its condition was before buying before buying a house I've only seen from the outside and bid on at the courthouse.

Hey all! In my previous life as a dumb landlord, I let a tenant not pay for a few months. Once all was said and done and after a few hundred in damages were fixed, they still owed about $4k. They agreed to a payment plan and were actually paying for a few months but have stopped. So, I want to send them to a collections agency. Are there certain collections agencies that deal with this type of debt? Anything I should be looking for in such agencies? Thanks!

Hi all, I have probably $90k in equity in my main residence, and I want to start buying and flipping/reselling/renting new properties. I already own 4 other properties as buy/hold, but I'd like to quit my W-2 job and get into flipping because I'd rather be out on a site than sitting on my butt on a computer at my current job all day :).

With that said, how are my prospects on getting a HELOC and using those funds to buy properties? I've never done a HELOC. Can you write a check and do a normal closing under this scheme? I'm not concerned with the risk because I have funds available elsewhere to easily cover things if crap hits the fan, but I'd rather not use them/they would require selling things I'd rather not.

As some anecdotal evidence, the one example I have of a loan actually being called due is from a discussion with someone here in Atlanta who triggered an inquiry by the mortgage company because of some obscure reason related to them having done either a Subject To or some form of seller financing. Their LLC was on the deed and on the tax form, and the mortgage company didn't say anything. It was only until like the previous owner died did the mortgage company decide to call the loan due. I can't remember what the reasoning for why all of a sudden they wouldn't be happy with the arrangement. In other cases, the mortgage company, as stated above, simply demanded the property be deeded back to the individual on the loan.

Honestly, it seems like mortgage companies only care that someone is paying them, and since the loan is in the individual's name, they always have recourse.

I'd seek legal advice simply because you're dealing with a 50/50 partner. I think having someone discuss the "what ifs" is a big advantage of someone who forms LLCs for a living; I think the actual technical formation/Operating Agreement work is less important (in that it's more important to know what to put in the OA vs. how to file it and such).

Yes, you are still protected as a single-member LLC... as long as you actually are a separate entity. This means keeping corporate records, following corporate law, having separate bank accounts, not co-mingingly funds/property, etc. The disregarded entity is basically for fed. taxes.

Hey all!

I wanted to start a discussion about valuing one's time. I'm big on DIYing work at my properties, but I don't want to waste my time on certain things. I think most people here place a value on their time as well. I currently have a W-2 job, a few properties, and am finishing up a PhD, so I don't do enough real estate that I have to also consider the "If you're fixing a toilet, you can't be out finding your next property" factor.

Anyhow, one thing I'm curious about is how do people value their time considering the future value of money. At my W-2 job, I'd say that my time is worth about $35/hour. A lot of people would tell me that I should value my time at say $50. I know of others who value their time at $100/hr. If I had something to do at a property that I figure would save me $300 (including material cost over cost of hiring out) to do in 10 hours (and it didn't affect W-2 life), one would say that it's $30/hr work. However, I think everyone here realizes that $300 now is certainly not worth $300 twenty years from now, when maybe I decide I'll retire early. At 10% ROI, assuming no inflation (you can play with this and say 12% and then 2% inflation, whatever), $300 now is $2200 at retirement, meaning that your work is $220/hr for retirement. In other words, cash now is king, obviously.

Does anyone else think this way? Is there much wrong with this thinking? Excuse me, I have to go install a floor now.

Note: I definitely understand opportunity cost, and I'm assuming that the time I save isn't really going to be put someplace productive (even though I could consider finishing my PhD faster or putting effort into moving up in my company... although the latter is laughable for reasons).

Does anyone have any recommendations for cards for us small-time investors/landlords? I don't put more than $5k on my cards in a year. In other words, $400 annual fees need not apply :)