All Forum Posts by: Lisa Higgins

The expenses I'm referring to are mileage, meals, etc. 

We own a 6-plex in an LLC. We have looked at many other properties in the last few years, but have been told that we can't write off those expenses in an "over-arching" way. Since those expenses don't really belong to the 6-plex, and we may never act on the property we are viewing, does that mean the expenses are not deductible? This doesn't seem logical to me. I'd love to know how others approach it.

Thank you!

Is there anything special we need to know about wholesaling a reverse mortgage short sale? It seems like it adds another layer of complication.

Oregon beach town, near-prime location, off-market SF fixer. It's an inherited property, ARV about $400k, needs an est. $75k of work. It's also a short sale on a reverse mortgage. The heir has assurance from the mortgage co. that they will accept $180k (although balance is about $280k). Heir wants another $20k to divide among himself and 2 siblings (finder's fee, maybe?). The numbers seem great, but 1) I'm not sure if the "finder's fee" is even legal--the mortgage company says they don't want to know about it; and 2) we have our hands full on a multi fixer and are concerned about using hard money and then letting either property sit. Would this be a good wholesaling opportunity? Any other ideas?

Thanks very much, BP!

Thanks for your reply, Jim. I wasn't very clear: we are planning to buy and hold, just using hard money to purchase quickly without worrying about pre-closing repairs. We will use our own cash for repairs after the loan is in place, then refi for the long term. I was told by a loan broker that federal guidelines say we have to have the original purchase loan (in this case, the hard money loan) in place for 12 months before we can get cash out conventional refinancing. I don't think that's true, but thought I would throw it out there. It sounds like you're saying individual banks might have different seasoning requirements. 

We are planning to purchase a foreclosed 4-plex with hard money because it needs about $30k worth of repairs. When the work is finished, we want to finance it into a permanent loan and get cash out to move onto another property (the BRRR strategy). Will conventional lenders require the loan to season for 6 or 12 months, or will we be able to get financing in, say, 3 or 4 months?

Yes, Johnathan, in fact investing (and relocating) outside of the PDX area is our intention. The prices are insane here and we feel like some of the other markets would be better. We have considered out of state, too, but haven't acted on it.

Thanks for asking, Kathy. We haven't done much (except read!) due to some life complications over the last several months. Hoping to buy a multi-unit this winter, and get our investment career underway.

Sounds great! I will be there, along with my son who is also interested in RE investing.

Thanks very much, everyone! I really appreciate your input. We have much to learn, and this looks like the place to do that.

Anyone care to weigh in on this? We have a large, separate tax lot behind our house. We are making it into a flag lot and aren't sure if we should sell it outright to a builder, built it out ourselves as a SF or a SF with an ADU, then rent it out or sell it finished. Financing would likely be an issue if we build it out, because we don't have much cash. Is this a decision that just depends upon our preference? Or is there more to consider? Thanks again!