All Forum Posts by: Kevin S.

@Glen Michael

I recently hired a PM and didn't have to provide any of those information you mentioned.

@Michael Quarles

We don't find post like yours often.  While Gino has a point my guess is that you probably were aware of that when you posted here.  

I am sure there are those who would not act if they don't pay.  On the other hand there are lot of us who are ready to act and looking for mentors like you who are truly willing to help (in the true sense) without expectations.  I will save your contact info in the meantime.

I hope you remain committed to your original post.  Thanks.

@Don Konipol

It's a good thing you posted this.  It avoid members get into trouble with people who don't have any idea about this. 

@Austin Cheatham

I get the 'step-up in basis' part.  Just want to clarify when Melanie wrote about selling at the date of death or within six months, that it appeared there will be tax implications after that time frame.  Thanks.  

@Melanie Baldridge

And what happens if not sold in six months?

@Grant Nash

I have no experience in flipping/rehabbing and will attempt to analyze strictly on numbers.  

If you were to buy the 270K home as an investment you would have had to come up with a 25% DP = $67,500.  Assuming you are coming to the table with 240K (210K+30K) this would leave you with $172,500 for your next investment.

Doing it the rehab way, you have $189,000 instead of $172,500.  That's an extra $16,500 for next investment i.e buy a property with extra $66K price tag.  Repeat this four times with exact same numbers and you now buy the fifth property with an extra 264K price tag!  

Don't forget with each property you have extra $13,500 in equity.  How so?  With usual 25% DP you have $67,500 equity.  Doing the rehab way you leave $81,000 (30% of 270K) in equity.  That's 54K on four properties.  Now multiply by whatever number of properties you have as your goal!

This is strictly by numbers.  Experienced BP members can correct me If I am wrong. I am here to learn myself.

@Dave Allen

Try Tower Hill and State Farm.  

@Stuart Udis

Your post highlights an important distinction between two different lending experiences.  My guess is when members are seeking “investor friendly” lenders they meant your second lender in your post, not the first one.  They meant the one doing the 20x project.  Now that may be an entire separate post as to how to get to that point. 

What will be more helpful is to mention those lenders that you are having good experiences with history of projects associated with the lending. For example, you can say that you did 15 projects of quad plexus using "xyz" lender or you did 9 SFR rehabs with "ABC" lender or you acquired 25 commercial strip plazas with so & so lender". This way members can identify who they can use based on what project they have at hand and what they are looking for. Seasoned investors with over four or five digit posts and votes mentioning those lenders will have validity over some with two digit votes. Even more, if these lenders are to be mentioned, then having a post with subject title that will be easily found will be great. Otherwise the names will be just buried.

 If more seasoned investors did that it would be a great help to other investors and to the lenders who deserve more business and more votes to the post.  A win win win situation.  Just my thoughts. I am new and not sure if it’s possible or there’s any rules on BP against it.  Thanks.

@Randall Alan

What kind of insurance do you carry if you have SFR in Florida? I am getting conflicting offer of home owner insurance by one broker and State Farm agent telling me home owner insurance is for primary residence, not for rental property. According to State Farm agent it should be "Rental dwelling" policy, not home owner policy. Can you chime in on this topic(home owner/rental dwelling/landlord insurance)? Thanks.

 I am in Florida.  I keep hearing that umbrella insurance is cheap but I don't find that being the case.  I have had umbrella insurance (without being a RE investor) for many years now and 1M umbrella is costing me about $1400/yr.  I was recommended by the same insurance agent that I should get more because of my net worth.

Do I need landlord insurance on top of home owner's insurance? Home owners ins cost about $2000/yr on the SFH I am buying for LTR. Landlord insurance supposedly cost 25% more than home owner insurance! If that is the case that's about $5000/yr which is insane. Plus umbrella policy! Thoughts?