All Forum Posts by: Michael DiGiovanni

I recently discovered a start-up company by the name of OpenDoor that's raised millions in VC money to essentially crush all of us who are investing in residential real estate within the U.S. Ultimately, I do not believe it's fair that a bunch of heavily funded tech. gurus who didn't know the first thing about real estate prior to starting the company are able to come in and uproot many family owned and small business investors across the country. Essentially, they are the "Walmart" of real estate investing that are out to line their pockets by taking advantage of ignorant homeowners and put hard-working small and medium-size businesses who aren't as fortunate to have hundreds of millions to work with out of business.

Therefore, if you feel so inclined to help the little guys, please leave a review on their Yelp page. If we all join together to inform the public what's going on, I am confident they will not be able to sustain their growth. Feel free to educate yourself further at Open Door's website. 

Sincerely,

A Concerned, Family-Owned And Operated Business Owner

Hi Nghi Lee,

Thank you for the input. Yes, I was wondering how the insurance would be handled (as I knew the lender would be notified regarding the insurance change.

There is definitely something to be said regarding spreading myself too thin. However, I am not like most people. I am alright with spending a few years of my life eating dirt, living frugally, and spreading my time between church, school, job, and my real estate investing business. Ever since I was eight years old "outsourcing" "franchised" lemonade stands to the neighborhood kids and taking a cut at days end, I always knew I wanted to be an entrepreneur. Therefore, now that I found my passion for all things Finance - especially real estate - I truly don't see the "work" as work. I see it as an experience that brings me great joy. It may sound cliche, but my closest friends tell me my eyes light up every time I talk about anything to do with finance - especially real estate.

Ultimately, at this point, I desire to meet experienced individuals early on to hopefully build a long-term working relationship (and learn a lot from them, too). 

P.S. I apologize for not mentioning you via your profile. For some reason, the system keeps giving me an "undefined" message everytime I attempt and tag you. 

P.S. Life is quite hectic for me right now due to me going to school full time at the University of Washington, working part-time, and getting my real estate investing company off the ground. However, if any of you would be willing to allow me to take you out for a cup of coffee or a bite to eat so we may see how we can benefit each other's businesses, that would be greatly appreciated. 

Afterall, networking with individuals who've been around in the industry a lot longer than I would be invaluable for not only expediting my success and benefiting the other individuals business endeavors, but it would also help me avoid some of the most common pitfalls novice investor fall prey to.

Could you technically have the best of both worlds by having the LLC on the Trust as opposed to the personal name? Again, the input is greatly appreciated. as I am still in college and relatively new to real estate investing.

In theory, isn't the privacy providing you asset protection, though? Also, it has the added benefit of avoiding probate. 

Hi Everyone,

Thank you all for the input. A few investors I have been talking to who've been doing what I described above for 35+ years recommended the strategy to me. However, I always thought it was unnecessary, as I don't know why a bank who is receiving payments on time would call a loan due and payable. 

However, in the long run, doesn't putting all your investment properties into a trust allow for favorable privacy, asset protection, and tax benefits over that of an LLC or S-Corp?

Ultimately, since I am still in college, I don't want to get unlucky (hence my initial post). Since various investors have been using the strategy above for 35+ years without legal ramifications, I would say it does work. However, I am not sure if it's worth the hassle. If I wanted the additional privacy, tax benefits, and asset protection, maybe I could transfer the properties into their own trusts after the initial closing and/or once the loan has been paid off.

Please, let me know your thoughts when time allows.

Thanks!

Hi Everyone,

Since I don't want to leave money on the table, can someone please give me the "in a nutshell" explanation to the following questions:

1) Should I set up a revocable or irrevocable land trust on each property I plan to sell on Owner Financing or L.O?

2) How would you recommend I go about setting up the land trust?

Last, but not least, here is a basic example of what I know:

Let's say that you come across a seller who is willing to give you title to his property. The only "glitch" is that the loan is not assumable because the mortgage has a "due on sale" clause. Here's the process for getting around it:

STEP 1: Sammy Seller signs a trust agreement with you as trustee of his trust. Sammy is named as the "beneficiary" of the trust.

STEP 2: Sammy Seller transfers title to the trustee (no violation of the clause)

STEP 3: Sammy Seller quietly assigns his interest under the trust to you (similar to a transfer of stock in a corporation). This assignment is not recorded in any public record. Sammy moves out and you move in.

STEP 4: You are now the beneficiary of the trust. Your trustee makes payments to the lender.

I know I should name the trust "Current Seller Last Name Family Trust." However, since I am currently in negotiation with a seller who owns the ideal L.O. or seller financing type of deal, an answer to the following two questions would be greatly appreciated.

P.S. If you have a real estate attorney that specializes in asset protection, land trusts, and works with investors in the State of Washington, I would appreciate a referral if you feel comfortable.

Thanks!

Michael

Hello,

I am new to the real estate investing scene and am looking to take my passion for real estate and turn it into an income stream to help pay for my tuition and student loans at the University of Washington. After an unfortunate series of events with a scammer claiming to be a real estate mentor, my zeal and resilience are ever-present to start from scratch by myself and be more active in the BP community now that I feel comfortable with the navigation. I have gone through many of the action items necessary to start a successful, legal real estate investing business in the State of Washington. However, I am stuck finding reputable and hard-working power team members due to the overwhelming amount of information online (I don't know what information is genuine and what's fallacious).

With that being said, I learned that the best way of finding reputable power team members is by asking investors in your local area for referrals. Therefore, if any bigger pockets members would be willing to refer me to anyone that they have worked with/are currently working with in any of the following vocations, that would be greatly appreciated: closing agent/title company (currently the most important), real estate agent, property manager, real estate attorney, project manager (as opposed to a GC), mortgage broker, hard money lender, accountant, inspector/appraiser, insurance agent.

Thank you in advance for your help and taking the time out of your busy schedules to reply.

Best Wishes,

Michael DiGiovanni 

Hi Everyone,

My name is Michael DiGiovanni. I'm 20 years old and a student at the University of Washington. I've always had an entrepreneurial spirit and interest in real estate. However, I've realized that the best way to success in real estate is to surround myself with like-minded, older, and wiser individuals to learn from.

Ultimately, my short-term goals are to earn an income utilizing creative real estate funding strategies to help pay off my tuition and student loans. My long term goal is to continue pursuing my passion for real estate through apartment complex investing and commercial real estate development.

After that long introduction, my question for the BP community would be how to go about finding a reputable, experienced, successful, and honest mentor? I've been burned hard in the past, unfortunately. Ultimately, I desire to surround myself with like-minded individuals -- even if it means working for them for free in exchange for knowledge and advice.

Thank you all in advance for your suggestions! 

Hi Everyone, My name is Michael DiGiovanni. I'm 20 years old and a student at the University of Washington. I've always had an entrepreneurial spirit and interest in real estate. However, I've realized that the best way to success in real estate is to surround myself with like-minded, older, and wiser individuals to learn from. Ultimately, my short-term goals are to earn an income utilizing creative real estate funding strategies to help pay off my tuition and student loans. My long term goal is to continue pursuing my passion for real estate through apartment complex investing and commercial real estate development. After that long introduction, my question for the BP community would be how to go about finding a reputable, experienced, successful, and honest mentor? I've been burned hard in the past, unfortunately. Ultimately, I desire to surround myself with like-minded individuals -- even if it means working for them for free in exchange for knowledge and advice. Thank you all in advance for your suggestions!