All Forum Posts by: Mike B.

BP is full of great content and they sell some good books as well.  Actually if you're just getting started, you can check out BP's free e-book. Ultimate guide to real estate investing.  Spend some time really diving into and exploring the forums.  You definitely need the education to get your foundation, then reach out and connect with experienced investors/mentors. 

Wholesaling can get you some capital quick..... when you can close a deal.  You absolutely Can make it happen, especially f you get lucky, or if you make it an actual business.  Making it a business means it will be your job.  Which means it will take a lot of your time.  It will also take a lot of money.  There's tons of competition out there.  It's true there are lots of cheap(er) and even free ways to get deals.  Of course you also need to consider who will buy your deals that you get locked in, and how you will handle all the paperwork, inspections, closing, etc... 

Just make sure you learn how thing work and especially how it works in whatever market you get into.  Tons of strategies out there.  Good luck!! 

I own a rental property in New Castle, PA.   I am due to renew my rental registration and the city code enforcement requires a "Responsible Agent" to be identified that resides within Lawrence County, PA.  I am no longer working with my initial property manager, who I had previously designated for this position, so I need to find a replacement. 

I have reached out to a few local property management agencies in that area and either received no response, or they wanted to be the full time monthly property manager.  My tenants are long term, good tenants, and I have auto-electronic rent payment in place.  The tenants cover the daily maintenance so at this point I am just self-managing.    I just want to find someone in the local New Castle/Lawrence County, PA area that I can designate as my Responsible Agent for this one property.  The responsible agent is just a local point of contact for the city/code enforcement in case the city needs to complete an inspection or have a violation remedied.   It seems the going rate for the responsible agent service is $100-$150 per year, but I'm having trouble finding someone available in that particular area.

Does anyone have any suggestions or recommendations for a person or company you are using for this service, in this area??

Thank you. 

I have liquidated a few investment properties I had in my own name so now I only have my primary residence in my name and then one investment property out-of-state in my LLC name. I'm interested in buying a few more out-of-state properties that would be 2-4 plex.

What is the best way to collect and be able to use the cashflow when the properties are under the LLC? Just write checks to myself as "distributions" from my LLC business bank account?

I hear of plenty of investors living off their cashflow, but not sure if the funds are passing through an LLC in some manner r the properties are just held in their own name...

When collecting cashflow and/or proceeds of a sale from an investment property (investment strategy probably doesn't matter) is there a significant difference in dispersing/collecting/receiving/using those funds, depending on how you hold title to the the property? LLC vs. personal name, vs trust, or other entity?

Is either way better, easier or more proper??

I understand when purchasing/titling properties and therefore holding or selling properties, in the name of your LLC, you create and operate a separate and distinct entity. So the funds earned in the LLC go toward funding the LLC rather than your personal car payment, lunch, toys for your kids, cable bill, etc.. However, you can make a disbursement to the the LLC members (including yourself). The sole-proprietor LLC will be pass through for tax purpose anyway at the end of the year. But if you title the property in your own name then all the funds can go directly to you each month...

What's the best way to handle this and ideally reap the benefits of the cashflow and sales proceeds but also the benefits of the LLC, if its even worth it....?

Yes, best choices from an investment standpoint - Walk away (not every property for sale is a deal); get licensed and list the house for sale (will be tough to get a good price in it's distressed condition); work out a reasonable lease option deal; work out a subject-to deal (if you have the cash to cover needed costs). Any way you look at it, the seller will most likely have to lose money on the deal given the high LTV and poor condition if he wants to sell now. Or he can pay to have renovations done on his property and then you/he are in a better position but still challenging.

Lease options are a great strategy, especially on properties you own as rental, BUT, it is not done with intentions/hopes/plans that the tenants don't come through, thereby forfeiting their option fee so you can repeat the process with another unqualified tenant. You must be fair and reasonable. Only do the lease option on properties that you are renting and are good with selling within the option term. It's a win-win strategy to help people get into home that they otherwise couldn't qualify for without your creative solution for them. It's just a rental until they exercise their right to purchase. If they don't exercise their right to purchase they move-out and you keep the option fee. True. However, the hope is that they do qualify and become homeowners, and you move on to another property deal. There's a bit more to the strategy than just collecting a chunk up front and renting then kicking them out when they don/can't buy... Look into a bit more if you're interested in this REI method.

A lot of factors involved to decide.  The numbers have to make sense depending on what you plan to do with the property.... How much are repairs to make it habitable for rental, or renovation for retail sale.  If you buy it and own it, a lease option could be a great plan.  If you're looking to flip the property or the contract then it's not the best situation as you've described for a lease option.  You could get the property and hold it for a few years as a rental if it cash flows well, depending on your financing, and other property expenses.  Tons of ways to do it, but you have to have a fair grasp of a plan and the numbers to match that plan to get started... 

on the same property - no. On separate properties, if you're eligible, then yes. 

Buy your first house as owner-occupied with your VA loan. After at least 1-yr, when you're ready, you can buy a new house for your family to live in and rent, sell, or lease option your first house. Tons of little components to a variety of strategies with this, but that could be your general plan to get started. If you don't mind neighbors, maybe consider buying a 2-4 unit property first. You live in one unit for 1+ yrs and rent out the rest.

Now while you are living comfortably in your own home with your family, you have one real estate investment property (your first house) under your belt, and throughout the 1-yr++ time period you continue to educate yourself on various REI methods and continue to discuss the topic and work with other investors. Maybe you'll get lucky enough to wholesale a couple of contracts to bring in some extra cash (this is more work typically than it sounds like). By then you should be a bit more comfortable from the standpoint of knowledge, experience, and stable finances. By then you should have a strategy and plan in place for your next couple of properties. You can do this all on the side at your own pace with a full time job, and actually having steady employment is good for you when getting mortgages on property in the beginning. If you're a busy professional, you'll most likely pursue the path of buy and hold rentals, probably even turn-key rentals, or even more passive activity of just investing your money in REITs, Equity Funds, Notes, etc.