All Forum Posts by: James Vermillion

Congrats John!

Tony,

I am currently rehabbing houses with the goal of transitioning to buy + hold this year. I agree with Bryan that with interest rates being so cheap and the market in its current state, buying and holding is the route to go. That being said, I have set up a business plan with the long haul in mind (going full time in 2012). The plan is to rehab 4 houses this year and buy 2 additional to hold.

The rehabbing will continue to add capitol for my business, while the rentals will work towards my long term goals. Our plan is to use the two strategies together to grow our business. It is all about your goal and how you want to get there.

Where does a private money loan (from a friend/associate) play into this? A loan differs from a sell of securities, right? With a loan you are paying back the funds based on a pre-determined interest rate...does that make it different from a security?

I ask because I just had a family member and a friend agree to loan my LLC money to purchase our next property.

Come on Mike! Just kidding, I don't mind the discussion at all. Thanks for all the replies.

Bryan, that is pretty much the plan for now. I was just seeing what some other options might be.

Ron, we invest in KY.

Will,

I guess I should have included some information about funding the first property. It is a loan from a community bank that we put 20% down on. It includes $30K for renovation draws, of which we will use approximately $22K.

All,

I am going to provide some additional information. Both of us have credit scores above 700, a combined income of 120K+, a business plan, etc.

The current project is scheduled to go on the market the first week of February. I can provide information about this property (renovations, ARV appraisal, etc.)

Our limiting factor right now is cash to put down on our next property (we are on a time frame so we can become full time investors in mid-2012). Are there any interested passive investors out there?

How have you dealt with having cash tied up?

Thanks again,

James

Thanks for the link! I will be reading through this. I am reading the Intelligent Investor by Benjamin Graham right now and I am betting these letters will supplement the book nicely.

Greetings,

My business partner and I are currently rehabbing our first home. We are about one month out from completion of the project (under budget and ahead of schedule) and are currently looking for our next house (potentially a rehab flip or rental). We are looking for a short term (3-6 month) loan to allow us to close on another loan while we complete the current property.

I am working some other angles right now but I am curious as to how others have dealt with this issue. The numbers are looking even better on our current project than we anticipated.

Thanks.

James

Happy New Year everyone! Time to go smoke a cigar!