All Forum Posts by: Keith Schuster

I'm setting up my first bank account for REI. I have my LLC. I went to create a bank account for the LLC. I was asked what kind of business - I said real estate investing. Several more questions later I was ask for the address of the investment property. They said that needs to go on the account as the place of business. Seems really odd to me. So now my account has the property address on it. Presumably if I add a couple more properties into the LLC they will want those addresses as well.

Is this the way an account should be created?  

thanks!

Keith

I'm surprised by your statement related to conventional financing.  Why would a TK provider care how the deal gets financed?  If someone came to buy my house I wouldn't care how they financed it as long as the check cleared.  Maybe I'm missing something.

So I'm just starting out.  I want to invest buy and hold for cash flow and I think turnkey is right for me at this point.  I understand that turnkey is largely a retail purchase.  Assuming I don't have the funds for a down payment and need to bring someone else into the deal to make it happen how would I structure this so its a win/win (I know - define win/win)?  I can't refi and buy them out if they are in for 100% of the purchase price.  I want to control the property and maximize my cash flow while using OPM...  Maybe I'm asking too much given I don't have equity to play with.

Would the only way to to do this be to split up ownership given they want to buy and hold just like me?

If they wanted to only finance the deal how could I eventually buy them out given the price point?

I guess I could use their money for the down payment and I could hold the financing on it.  Then just pay them back out of the cash flow

Maybe I'm over thinking this but I'd really appreciate feedback on what kind of options there might be.

thanks

Keith

Is there a rule of thumb for property insurance.  I'm looking at a duplex - wondering what to estimate for insurance...

thanks

Keith

 This is exactly what I'm thinking... my 401K is taking a beating this last week...  I want that 9k!!!

Thanks everyone for the feedback. I'm going to look into using the IRA.... Could be a great way to start the journey

Keith

I'm new to real estate investing and have been thinking about it for what seems like an eternity. I've been spending a lot of time thinking about retirement. Frankly, I'm not optimistic about whether my 401k/IRA's are going to be enough when I decide to retire - I guess thats part of the issue - I may never get to retire... I'm looking at real estate as a possible enhancement to my retirement plan. The way I'm looking at it, cash flow from RE is the way to go. Seems to me regardless of what the stock market does(look at last week) real estate is always going to provide cash flow for me. The more I look at it the more I think retirement accounts are a waste of time - I ought to be putting my money in real estate and building a reliable cash flow that can carry me through retirement.

I'm wondering if I should stop contributing to my 401K and use those funds for REI... I've got about 300K in an IRA - maybe I use those funds as well... I guess I'm looking for your thoughts on this. Any thoughts - anyone thinking/ doing something similar?

Thanks

Keith

I'm looking at a foreclosure here in houston.  I've left messages and emailed the trustee listed for some more information.  I'm wondering what your experiences have been dealing with trustee's..  Should i expect a response or are trustee's generally non-responsive.

thanks

Keith

Hi all - I'm looking at a 25 unit property in Houston.  It's in foreclosure and due to be sold in Sept.  I'm trying to run numbers through the Rental Properties Calculator  but I don't have enough information or knowledge to fill in all the expense items.  I was wondering if you all could help me come up with reasonable averages for this type of property - in Houston in particular???

25 units build in 1971.  Supposed to have had new roof done this year.  

I need the following

Cap rate
Water
Sewer
Electric - has laundry
Garbage
Insurance
Other

Vacancy %
% towards repairs and maintenance
% towards cap x
% prop mgt fee

Thanks!

Keith

I'm new to investing and also looking at foreclosures in Houston.  I've been told that if it makes it to the courthouse steps it is a cash transaction.  You'll need cashier checks in various denominations.  If you win the bid you hand over the cash, sign some papers and the property is yours - that day...  That's what I've been told - 

Thats a fantastic answer!  Thanks.