All Forum Posts by: Kyle Sosnowski

I was just talking to an architect about this. The vast majority of people that talk about getting into investing never pull the trigger. It's been that way for my entire career. I think your probably right about the 5%...but that's because few actually act...most just talk about doing it. 

 How is it going so far? Did you make your 1st purchase?

I just read someplace that in CA if you conduct business here you have to pay the board $800 here. So we just create an LLC for Georigia then bay the CA tax board?

@Account Closed you have a good post above already.  I'll try to add a little here:

1) Is it possible that the seller would accept a lower interest rate than the market rate? If so, why would they do this? - There are all sorts of reasons "why" someone might do this and sometimes we may not know "why".  It is not common...but it is possible (but it is rare). 

2) Would the seller also accept a lower down payment than 20%? If so, why would they do this, since this increases their risk right? - Same here, it is possible, it is rare, they aren't usually thinking about "risk".

3) Why would a seller ever agree to this? It seems like a bigger headache to manage a loan? What are some of the dire situations they would agree to doing this? - Well, this isn't really your problem.  This is their loan.  You don't really worry about Bank of America and their position, right?  Same thing here.  If they choose to go this route, the responsibility is theirs. 

4) Would the seller provide me monthly mortgage statements? If I wanted to pay down the principle quickly, is this possible? - If it's a sophisticated lender, then yes, they would provide you with monthly statements.  But for the scenario you seem to be describing, it sounds more like someone who is not sophisticated - and then you will have a little more responsibility of tracking your payments.  Sometimes owner financers don't even provide a 1098 for us at the end of the year...and we have to generate (and track) our own tax deductible interest.  Usually the better the terms, the less support you receive.

5) Would I put the seller down as the mortgagee on my homeowners insurance? Would they also collect escrow for taxes and insurance? - Again, this is NOT your responsibility.  This is theirs.  If they don't require you to put them as a mortgagee on their insurance...then that's to your benefit.  It's not to THEIR benefit...but it's to your benefit.  Same with the taxes and insurance.  That's on them.  Requiring an inexperienced person to use a mortgage servicer might actually backfire.   They may not be savvy enough to understand what that is nor have any interest in making their loan to you more complicated.  All of that is on them.  

Hope some of that makes sense. 

 Yes around the universities is great money! I am working with some clients to do student housing around SDSU area in San Diego. Big money maker. 

This house I did it with was actually in Roseville.

You should also understand that homestead is a tax exemption that only applies to the primary residence you live in most of the year.   It cannot be used a property you rent out to someone else.  

As such it can also only be applied to one home.   You could use this if you plan to house hack, but it is your responsibility to notify the government if you move out and start renting the house.  Applying for homestead exemption on more than one property is tax fraud and they can come after you for that.   

https://floridarevenue.com/property/documents/pt113.pdf