All Forum Posts by: Manolo D.

Bunch of guys in home depot, you don’t need this to be great looking anyway.

1. If your networth is less than 250k, that’s if you sell everything you have and pay everything you owe today, you’ll have cold cash of 250k tomorrow, no entity is worth it. 2. If you don’t know how to file, maintain, and correctly follow-up on the llc/corporation, you’ll be a sitting duck, get sued, and llc is useless. 3. You are in CA where corporate veils are easily pierced, especially on an employer-employee or a tenant-landlord case. 4. If your LLC is new, and it will not qualify to get a loan on its own, meaning you have to co-sign personally aka personal guarantee it, then your llc is useless. Tenants can go after the asset, and since you guaranteed it, whatever happens to the house, you use personal assets to cover the debt. I have 20 more but I doubt I want to go that way.

Ryan K. 1. 750k is not expensive, pssh. 2. Where is your calculation on appreciation? What’s the best year to sell? Y5, Y8, Y10?

James M. Don’t get 300-400k, get 150k-200, for a DP of 750k-1m for both properties. Forget about cash flow, think appreciation, cash flow is nothing in socal. So say you take 200k, that’s 400k for SF and 600k MF, now the MF has income so it offsets. So your income is 3k on SoPas, 0 on Rosemead, say 5k on 4-unit. That’s 8k income for a 200 SoPas, 320 Rosemead, 480 4-unit. So at $5/1k, your monthly expenses is at around $5k for the 1M. Say you take 50k more for repairs on your new home, that’s only $250/mo more. Roughly your break even will be 5.5k/mo worth of rent, forget about vacancy and maintenance and etc, they’re only good out of state, you only think how much you need and when you will sell.

The most common unknowns are the ones that you don’t know yet. While asking this question might seem to you as an easy way to avoid costs, i’d suggest you take more time to do your research instead of jumping around which stone to step on a river, i’d say build a bridge. RE has expensive lessons, and most if they have to pay for it, quit.

Jennifer Ramsey I was referring to Rent. Your suggestion of using an HML while someone rents will likely be a negative cash flow, the purpose of rent is to have the property get a better cash flow number. If the property hs negative cash flow, it will not be eligible for refi. I wouldn’t use any HML if there is more than 12 month of payback, simply too expensive. To the OP you were asking for a business line of credit, according to my knowledge, this is achievable by neglecting your personal finances, aka no ties with your SSN, to me that is the real Business Line of Credit, you give your FEIN and bank statements, owner names WITHOUT SSN can be asked for but should be irrelevant, a board resolution with my name and authority to open such account should be sufficient to open this LOC.

Nigel McFarlane Hmm, Chris Mason for financing and Evelyn Georgieva for REA services should be a great combo. Read about self sufficiency rule as well for MF for 2-4 units.

Tom Smith In LA, there are a lot of competition, not everyone knows how to manage financing on the buyer end after the conventional lending. Say a client wants a 700k home with 50k in bank, and 500k approved loan, so if you’re an agent with no ammunition of knowledge or who to go to, what next? In short the buyer pool needs to be strong, and even when you’re on the selling side, buyer after buyer might fall apart on financing and makes the seller lose patience. Higher dollar figure also especially in higher numbers drop, ive seen some advertise 2.5-3%, some 1% just to list it and no other service, some a flat fee of 3-5k for this list, 6% simply does not exist anymore. Sure, some agents give you a full service but with competition percents going down, sometimes its easier to go with the flow and make a little than go against the grain and get nothing.

Vee Vu Short answer, no. There might be some out there, about 2% of the lenders. Ask Chris Mason , maybe he knows.

Jennifer Ramsey HML won’t work, BRs involve holding.