All Forum Posts by: Judah Hoover

The best part about dealing with a credit union is they can do what ever the heck they want... the worst part about dealing with a credit union is they can do what ever the heck they want.

(with in reason of course)

They will look at BOTH. They will take the sch C and all other incomes that feed into your AGI... but then they will add back in any "depreciation" and "depletion", I forget the exact lines these are on, because they are what is called "paper losses". BUT BE WARNED!!! they will also disallow income if you haven't been getting it for 2 or 3 years, depending on the type of income and how stable the income is. Also any drop of 10% or more in any one category will have to be explained.

Calculating income has become very complex and you need to work with a good loan officer to be sure you are getting a fair accounting of all your income.

15 years as a loan officer speaking... thankfully a full time real estate investor now!

@Rick H. really gets to the heart of why this is so hard... so much of it is context specific.

BTW(by the way) Rick I don't know what to compliment you on first, your hat or your high post to vote (PTV) ratio. Both are awesome!

@Chris L. "bring doughnuts" I LOVE IT!!

@Jon Quigley I would recommend you find, join, attend, and become active in your local REIA club. The local pros will be able to tell you how they get those lists. You can google "list providers" to buy them. Call a few, prices will go from 11 cents to a dollar a record!

I just walk down to the court house go to the prothonotary office and pay a few bucks for that months list. (in this area prothonotary handles civil issues, clerk of courts is for criminal).

@Josh Caldwell and @Chris Music offer great advice. I would add a few steps to put into practice.

1) Join, attend, and become involved with your local REIA club

2) Call every bandit sign you see... "what are you doing? where are you buying? what are you looking for? what areas are you avoiding? Why, why why? Tell me more". Local investors, for some strange reason, are VERY willing to help other investors.

3) Walk 100 houses in your market. not 50 not 95... walk 100 houses. Houses for rent, houses for sale, houses in all stages of completion and in any condition. I am not talking about parade of homes houses... houses out of your price range. Walk 100 houses of they type, price range, and in areas you will likely be doing.

@Chad Hurin if you lost these tenants how easily could they be replaced? How much work would it take to make the property rent ready? Only you can make the call on weather you are willing to risk it or not. See if you can get them to pay by mail with money order. That seems to be your best bet. MAYBE you could even promise not to raise the rent for 2 years if they stat paying by mail! Find a way to incentivize them.

@Cameron Skinner gives great advice. Dont file taxes the first year. If you didn't earn you should be fine... now that's NOT true if you earn, than don't, than do, than don't... like that. You WILL have to file every year. But if its a sole member LLC taxed as a S-corp, it will be a "pass through" and just show up on your Schedule C of your tax returns... shouldn't cost you much to have it prepared every year.

Cash is nice... you sure you don't want to pick it up?

You just have to tell them to mail you a money order, they can buy them at any minute market. They wont, you will file eviction and they will learn or get out... simple as that. If you don't want to chance losing them because they are long term (and lets face it, low income and long term almost NEVER go together) don't even start down this road... just keep picking up the rent like the last guy did.

 you have no idea.....

DON'T EVEN CONSIDER THIS DEAL... unless you have completely vetted him. Do they have the $250k to do the rehab, have they done a rehab like that before? The good thing about TX is you can foreclose very easily.

Go to your local REIA club to get referrals of local attorneys that have done this kid of work. All the paperwork in the world cant protect you from this guy being a loser that cant rehab... worry about him 3 times as much as the deal structure and paperwork.