All Forum Posts by: Luis Montanez

Are you wanting to look up a house in Austell GA or Maryland?

If in Austell GA, go to: http://www.cobbassessor.org/cobbga/search/commonse...

Around February I requested and was approved $15k unsecured business line of credit. I have been using it responsibly and currently have an unpaid balances of $1,500.  

The question is, when would you request a credit increase?  Would you do it know with the unpaid balance? Or would you pay off the balance first before requesting the increase?

I have an excellent credit but low on cash so will have to wait about 3 months if I deicide to pay of balance first.

@Paul Danieli It was not a paid ad.

I called him back and ask what key word he used to find me, and it was the title of my web page... I already referred it to a buyer I got from a facebook page for a $1,000 referral fee.. It will be nice to get paid for 20 min of work..

Thanks

I just got a call from my website on a lead from a different state of what I am marketing too... My intended market is in Cobb County GA and the lead is at Auburn St, Detroit, MI 48228... How could this happen? what would you do with this lead? I would be happy to just get a $1,000 referal fee.

I have a similar situation my 100% own S-Corp that I use as a manager company (In GA it is not require to have broker's license if you are managing your own property).

In my opinion I felt it will be advantageous in the 3 following areas:

1. Legal: I did a contract with the entity to do the acquisition/disposition, renovation and property management of my properties. All money that I put in my RE company I do a promissory note for the money to be paid back to me (with interest) when it becomes profitable. A UCC form is also filled and filed to have a 1st or 2nd position lean of the assets incase I get sewed by a contractor during renovation or tenant in case of an inside attack. There are some other legal benefits but too long to explain and I am not a lawyer.

2. Taxes: A business can claim much more deductions than an individual (this is a fact) in addition it is much easier for a LLC or S-Corp to qualify as a Real Estate Professional than an individual (the details in IRS publication 925 look for qualification of "Active participation"). The benefit is that your entity may not be subject to the Passive Activity Limits for deductible loss established by IRS.

3 Financial: If you are properly running your LLC (minutes, filling, separate bank account, filing taxes, EIN, getting your DUNS number, Getting Business Credit Cards, etc.). It will help you to establish business credit and therefore help the separate your personal finances from your business finances. As you grow, the entity will be able to get Business lines of credit, business loans and other benefits that eventually you will be evele to do with out a personal guarantee.

Long Post but I hope you get the Big Picture.. I little more work but it may be worth it...

Hello BP,

I just rented this house and the tenant is presenting this situation which it is just starting to develop (wasn't it suppose to be ALL passive income once rented?)....

In our contract we specifically state that they agree to "use the premise ONLY as a residence for themselves and their children named in the contract".

Tenant casually asked me if I did not mind if she took care of some of her friends kids to make some extra money. I verbally told her (while distracted on some other matter) that I did not mind as long as there was no insurance issues (meaning that she was insured and took 100% responsibility of any injury in the house as also stated in the contract).

Today she called me to ask if I need to see the income of her friend (what I think is her business partner) since she will be helping her out to take care of the kids...

To summarize the post... my concern is that (all that not informed directly) they are attempting to form a Daycare at the house and I informed that before they move forward with their plans. The following needs to happen:

1. They need to do all the research for what is required to run a daycare in Cobb County, GA. (since a day care is not my area of competence no do I intend to make it so). Some issues that may come are:

a. Zoning issues

b. Additional cost for my property insurance

c. having to re-due the contract to include her partner and the approval for commercial use.

d. not to be greedy, but I may have to increase the rent for the risk increase

2. Once they provide me all documentation, I will have to spend some time verifying the information provided and doing some additional research to close any gaps to include calling my insurance company.

3. Once all this happens I will have to translate this to cost and informed them if:

a. I can authorize them to run the daycare with the applicable additional cost

b. That we will not doing due to the risk or the property not meeting certain gov. requirements.

Please share your thoughts on what other things would you consider in my situation...

Thanks

To answer the question ask your self.

1. do I have money to leverage my time? or

2. do y have time to leverage my money?

If the answer is 1. get an agent, if 2. get educated by reading on the subject and do it your self.

I have done both and have had success/failed with both methods.

Based on my little experience my current "work backwards" approach for selecting, rehabbing and renting my own properties is as follows:

1. go to apps like Zillow and others where you can determine what is the Median monthly rent for your desired area.

2. Call 10 to 20 for rent listings to determine the average vacancy rate.

3. look at 10 to 20 of this median rental properties to make an assessment of what is the offer and demand for your area. Also to help you learn not to under or over rehab your rental.

4. I like to make $500+ to $300 minimum cash flow per month so I will subtract this from the median to work back to my desired ARV.

With this strategy my intent is to have the capability to offer a product that is in the median of the market and this way I don't get the low end (bad tenants) or high end (higher rents but higher vacancy rates).

my last one I was able to rent it 3 days prior to finishing the renovation.

For those that have invested, have done reaserch or are land loards in Cobb County, GA. How to:

1. Find out if the potential tenet has been serve with an eviction notice (other than calling the current landlord).

2. get the landlords contact information for properties that are currently in the eviction process.

I called the court house and found out that for probate it is done online through a tedious process (they will not print a list for what I know). but for evictions I am not sure.

Thanks in advance for any information gracefully provided.

@Diego Anderson anyone can get a first "deal" done. But a lower % can get a Good or Excellent first deal done.

The difference is education... be careful with who you select as a "mentor" since many out there are just looking to separate you from your money.

Good books and forums such as Bigger Pockets can fill the need of a mentor, so do not limit your self for this.

The first 20 hours of reading about REI (real estate investing) will give the best ROTI (return of time Investment), since with out this you could potentially lose lots of money. Good luck

For me it would be to:

*250 units Class A apartment complex, 15% Cap Rate with under $5k or No money down.

*The purchase 40 acres of coast land in the Habana, Cuba right before the United_States_lifts the embargo_against_Cuba.