All Forum Posts by: Lane Babin

When developing a pro forma for a storage facility, what percentage of gross income should be estimated as operating expenses? I've see a feasibility study by an economist recently that mentioned using 45% of gross income when estimating operating expenses. Does this sound reasonably accurate?

Can someone please elaborate on how the audio version of the book is delivered/downloaded? I typically purchase all of my audio books on the Audible app on my phone so that my wife and I can share them and she can also listen from her phone. I'm curious if I will be able to share the book with my wife if I download it from Bigger Pockets or if I need to wait for it to be released to Audible.

Is it legal to offer a discounted rent rate to 1st responders? It's legal for regular business, but I have a feeling it is violating some type of antidiscrimination laws for HUD with respect to renting. Can someone more knowledgeable please elaborate?

@clayton pl

@Clayton Plank So there are no special contracts that need to be written up? Everything is just filed as a typical mortgage would be and the terms are documented on the purchase agreement and on the mortgage that is recorded? Almost seems too easy...

My business partner and I are looking at purchasing two houses from an experienced investor that is downsizing his portfolio as he now has some health issues. He is willing to explore the route of owner financing with us as he sees the benefits of making additional money from the mortgage interest. How is this usually setup? Is there a third party company that is utilized to oversee the payments for documentation? Can someone assist with example documents/contracts that are used for this?

Thanks,

My business partner and I are new to the REI game. We currently have two houses that we have acquired and we are in the process of acquiring contractor bids to renovate them for resale. My question is, should we purchase all of the materials or have the contractor do this? Is there a potential cost savings (i.e. no markup on materiel costs by contractors) by purchasing these materials ourselves if we setup the proper accounts at the supply stores and can receive the same contractor discounts? Are contractors willing to work with this method or do they prefer to run all materials through their business? Just looking for some general input from the past experience of others in the business here.

Thanks,

I like it advice of allowing her to remain in the third property while working on the other two. I am with you on not being greedy. I see the value in making a little less profit on each individual deal and looking at them with respect to potential profit on the combined properties. 

@Luncy Jeter I agree on the seller financing as an option. It is now one of the options we are preparing to present to her. However, she does want a large sum of money to purchase her new home when she moves to Florida (witin 2 years she indiciated). So, I was thinking that we do a seller financing (to get our name on the title), and we set the terms of the note as being that we will pay the mortgage in full within 12 months. We would put a down payment on the note (say $5K) and then pay her a monthly mortgage going forward. We can then rehab the property quickly and sell within a few months after the rehab is complete. We pay her the remainder of the mortgage, and walk away with our proffit and not having had to put too much money into the project.