All Forum Posts by: Justin D Schwartz

 yes, very much so. Thank you for such a detailed explanation I really appreciate you being so thorough. 

I can't say that I like your answer cause it may cost me a lot lol, but I now have a better understanding about their issue with it. 

@BreAnn Stephenson

@BreAnn StephensonI can totally understand some of the stipulation such as the roof and even the water heaters. What I do not understand is how an older air handler is a threat to the property, what Damage can they cause that the insurance would have to cover? 

What do yall look for when you are inspecting a new purchase?

I'm going to view a property this coming Wednesday. I'll take any advice yall want to give about what are the top things to look for before entering into a contract or red flags that make you want to walk away.

Hey guys,

I'm looking at buying a 4plex but I have a few concerns.

My last duplex I purchased back in January had an older roof, older water heater, and older AC system (air handler). The insurance company started giving me all sorts of grief and made me replace the water heaters, get a roof inspection and an AC inspection. do they really have the right to do this? 

To bring this back full circle, the 4plex I am looking at has older Air handling units and I'm worried if I purchase it the insurance company may make me replace them. Any advice? has anyone experienced this before? what did you do, or what would you do?

@Account Closed 

One bank told me they could do a portfolio loan but I do not like the terms, another institution contacted me today because of this post and I have to discuss with them about a cash out Refi. thank you for letting me know that was an option.

Yall bigger pockets family are amazing. I look forward to the day I can offer such great insight back to you and to others!!!

 Please explain, I do not understand what you mean.

Still learning the lingo.

Thank you

Justin D Schwartz

 Somebody slipping, a random dog biting someone on my property. just any and all forms of unforeseen problems that might arise and have me sued

As I continue to grow my personal portfolio I am now considering starting an LLC to put my properties under but there are many variables so I am asking for help.

Closing in an LLC makes your rates higher than closing in my personal name so this makes a deal less valuable.

Closing in my personal name does not have the protection that an LLC has, I can do a quit claim deed over to the LLC after closing but I have to pay the taxes all over again and I take a chance of the bank demanding immediate payoff for changing the deed.

Is an umbrella policy over my properties adequate protection for my assets?

Hey everyone,

I am seeking advice and possibly funding. 

I'll give you my situation and I welcome all advice and or offers.

I am asset rich and cash poor, I have a very high credit rating, I own 3 cash producing rental duplexes and one is paid off, I have money in stocks, silver, and I am part owner in the company I work for.

I am ready to do another deal, and i believe I may have found a winner ( I am running the final numbers now). the problem is exactly what I stated above, I do not have the money for a down payment. I do not want a hard money lender as this is a buy and hold so the interest would kill me.

Does anyone have any advice for some creative financing?

Thank you

Justin D Schwartz

I bought a duplex three years ago and put 20% down I told them i would be living in one side but didn't and turns out they check that stuff (don't lie about this) they gave me only a few options 1. pay off the loan or 2. refinance. luckily i had family eager to take this loan and a higher percentage than the bank was paying them for their savings so i was able to "refinance" without the refinancing cost. at that point i decided to pay off the loan extremely quick ( I still don't know why) now I have lots of equity but no cash so i'm going to have to get an equity loan which will have its own fees and use that for a down payment on other properties. My advice, be careful with buying, and less careful with leveraging. if you buy a property at a good price with good cash flow then don't sweat the mortgage. Just keep enough to cover the unsuspected cost of maintenance. Eventually with enough properties your risk will go down, the chances of all your tenants moving out at once or a bad fire or whatever else could go wrong it wont happen to all your properties at once and the others can float the mortgage till you have the cash flow back.

Best Regards

Justin D Schwartz