All Forum Posts by: Kenneth Garrett

I use NTN National Tenant Network ntnonline.com for screening potential tenants. You can select the depth of the background but it does include evictions and criminal background.   I found it to be very good for screening.  I have not used the site you are describing.

Good Luck. 

Hi Vic,

I have been a part-time investor for a few years.  Yes, it can be frustrating since you have limited time to devote towards your investing career.  Here is how I look at investing part time:

!. I use my time more effectively since it is limited.

2. I have become an expert in my select market so that I can compete at a high level.

3. My strategy is buy n hold not flip, so I can bid a slightly higher than if it were a flip provided the numbers work. 

4. I don't worry about my competition although I am aware of them.  If the numbers work for me that is all that is important to me.

5. Sometimes we can be so conservative because we are afraid to make a mistake it paralysis us.   

6. Believe in your numbers.  If the market you are competing is to competitive you may want to select a different market.  I have a few cities by me where the competition is to strong as you explained in your blog I selected a different market.  Just pick a solid market.

7. If you become an expert in your market you will be competitive.   

Hang in there you will be successful.

I invest in single family, duplex, triplex and fourplex in the north and northwest suburbs of Illinois.  I am looking to add to my rental portfolio.  Message me if you have any available properties. 

Flips should be held in an S-Corp not in an LLC. The S-Corp will save you on taxes. See Mark Kohler video on S-Corps on YouTube.

Good Luck.

The LLC must be in the state you own the property. You can have a Florida LLC and then register it in Kansas. I use separate LLC's in each state I own property to take advantage of the asset protection.

Hope this helps. 

Will,

The LLC is the best way to hold rental units. You must run it like a business no comingling funds. By having an established business you get all the advantages of tax write-offs, depreciation and asset protection. The LLC advantage is asset protection it is not necessary tax advantages although there are some.

The idea is to separate yourself from your business in case there is a lawsuit. Putting assets in your name exposes you to any current assets. You can have multiple properties in the same LLC it depends on the equity. If there is not much equity then there is not much risk. If your state allows series LLC then you are given additional asset protection with one LLC and baby LLC's within the master. Go to youtube and look up Mark Kohler on LLC advantages. Mark does a weekly podcast and he is a CPA and attorney and is a wealth of information. His firm represents clients in all 50 states. I have used mark in the past.

Good Luck.     

Whitney,

Have you thought of using other people money (OPM). Here is my strategy. I have made contacts with people of who have self directed retirement funds (IRA/401K etc). I purchase and rehab the property with there money. I place a tenant in the property and refi with a commercial loan. Loan is based on investment and not so much on my credit score debt to income ratio (DIT), etc. This can be repeated over and over. It's a plan that most people do not know about even investors. I pay them a high rate of return but each property I acquire cash flows 300+. You may want to look into it as an option.

Good Luck.    

You can get contractors to give you estimates, but there time is valuable as well. It would be best to have someone recommend a contractor or attend a local REIA and ask around about contractors. Contractors within the REIA understand the process of investors. The 5-10K I gave you is for the mold removal. I must say I have had it done for 500-1000 dollars as well, it just depends on the severity of the mold.

Austin,

Property needs a lot of work.  Don't let mold scare you. By us we say "Mold is Gold".  If you don't have any experience with mold, I would recommend hiring a contractor licensed in mold remediation.  There are numerous types of mold, but black mold is the one we generally talk about.   Mold is caused by water and humidity.  It is obvious when you see the bottom three feet of the drywall/plaster removed.  Since the basement has had all of the drywall removed it seems safe to say it was there as well.  The cost can vary quite a bit depending on the severity of it.  Determining the source is the key so you can eliminate the source of the problem. Cost could be 5-10K.  It really varies based on the extent.  My contractor is licensed so he takes care of it.

Wish I could be more definitive, but there are just to many variables.  Let me just say, I have seen a lot worse than the photos. 

Good Luck.  

Mark,

When I started I went in to many directions and it cost me valuable time.  I think it is best to select a target area or two and focus on those.  You will learn in a quick amount of time what properties have potential and which ones are retail value.  Remember we are trying to buy things at a discount.  You should pick a strategy so you concentrate on that method.  If your goal is flip then I would analyze things based on that strategy.  Keeping focused is the best advice I can give you. 

Good Luck.