All Forum Posts by: Michael Lewis Lee

@Jason Read - It should be whatever you both can agree on including property finding and any other things you actually do like overseeing repairs/rehab, reselling activities, and more. Putting most of the money down and in what form besides just security is a factor but it’s actual use and any other physical activity through beginning and to the end. The actual involvement in the deal will/should make a difference and the actual risk taking should factor in. Sometimes getting started has less value than it should but sometimes taking a little less with that is normal but does not feel good to you. This is a two-way street and all physical activity should be considered as well as each item contributes to its success. Good luck to you!

@John Anderson - It can be but do not have to be as long as they are your partner in writing and it is a conventional loan. That rule can be used by your lender requirements. Good luck!

@Alecia Loveless - Deal directly with the owner to get your best deal. For an Agent's help promise their earnings on a resell. That is when using the MLS will pay off. When you are buying from the MLS it will rarely payoff. It's too retail and most listings over a few days old on the MLS are not good deals. Otherwise, I would only look for expired listings. Have continued Good Luck!

@Edward Moore - Owner financing or my lending service

@Tanner Cole - get owner financing and make it “subject to”. Owner financing is usually more flexible and you can offer terms you can afford, pay off the owner’s loan plus pay them a decent spread and that you will take care of any repairs for the first two or so years. You can limit your down payment for what you can afford and they can spread out their income. It might matter which state it is in. There’s no closing costs plus commissions either.

@Benny Sanquintin - Hello Benny! You’ll probably get a few different answers. These are my opinion. Of course, the location and the ease of access and it’s distance from a major traffic artery. Try to find a product that has an add value ability from the exterior items, the interior concept including washer and dryer location. Does it have rents below the average in that area? Any other space for other income like gardening, storage rooms, or enough space to add new units.

Try to not have any major expenses like roof replacement, exterior painting, or A/C replacement and driveway repairs/replacement or

parking and garages or carports. It’s distance from retail locations and public transportation. Are there any landscaping or drainage improvements. You might consider a good unit bedroom layout and quantity. Does it have automatic positive cash flow right away and investigate if there is any owner financing availability. It’s level of occupancy. That’s about all I can think of right now. Good luck to you!

Refinancing. Even hard money loans without your home being used as security like a HELOC loan. You could even consider a financial partner and give up part of any net profit. You could get some help with a private loan broker or just speak directly with private lenders. Shop around and reduce your total expenses. Find a good deal.

Hello Megan!  Tour looking in a good area from what I here in Dallas.the previous writer was pretty much right.  All of your questions are negotiable and part of your contract/agreement.  All states typically have different agent laws. Is this an investment or personal use?  Either way, I think you cannot “use” your license in either case but they need to be aware of your license.  I am also concerned about interest only payments unless they are necessary to make the deal work for you and that creates a positive cash flow as an investment.

If it is an investment try to pay principle if you can afford to and still have a positive cash flow.  If that is a personal purchase you still need some questions answered so you know what you are getting into or what all you must pay for, either direct or indirect expenses. Is this a lease with a sales option?  After those 10 years, how or what determines its value?  How would you fully determine its worthiness?  How will you determine it’s total worth as a deal without knowing that?

Will it's final worth be determined by national published inflation rate or its ARV average from 3 agents, you not included. It really depends on your investment purpose to answer any tax related questions. The tax treatment is usually different for a business or personal expenses.

Go through all through the typical evaluation and due diligence requirements including a professional inspection and appraisal.  Who gets the title at the beginning?  Will it be a general warranty deed or a “red flag” one?  Good luck to you!

@Joe S.

If you are not having a problem getting a loan, why change? They can become someone's partner and really help them out. For your knowledge, your profit split suggestion is OK. Personal decisions are rarely any good. Do not create more work, just to help somebody out. I would create a separate LLC for all properties and try to make sure a bank has no trouble with you transferring ownership to a LLC and it will not trigger a due on sale clause. They still will probably have your personal guarantee. You're other answer is pretty good too. Proceed with caution. A good deal depends on good numbers.

Hello Terrance! It is possible to have less than 20% down with a hard money lender. If it is a good deal you can get 100% on the sale price, 100% of the repair cost, and 100% of the closing costs. call me at 469=778-8925 and I will explain more. Thanks for your membership and question. If it is not great you can borrow 90% as long as its ARV value is behind the ARV x 65%. Good luck to you!