All Forum Posts by: Mike Montanye

We are new investors and just established an LLC for our new rental property business. I'm just wondering if I would be able to write off events like BPCON or any training or memberships that have to do with Real Estate.

I know that it’s a question for my accountant, but also know there are accountants on here.

I have been researching wholesaling as an investment option. I stumbled upon Deal Machine as a tool to aid in the process. This appeared to be everything I was missing. I signed up for the 7 day trial. I created lists, searched virtual markets and was able to skip trace all of these for free...or so I thought. At no time was I informed that what I was doing was going to cost money. I'm not even sure what I did that needed to be paid for. But they auto-deposited $50 into my "marketing account." I now have $48.61. When I talked to a rep they said I could not be refunded that amount and now my trial has expired, so in order to spend my $48.61 I would need to spend $59 for the month. 

Service seems useful. But be careful with your trial. Zero help getting that balance back. Just kept telling me to send some postcards...

Never again with Deal Machine. 
 

We just got our inspection report back on our first turnkey rental. Here are the big ticket items on the report:

Collapsed Main Sewer Line

Damaged Sub Floor in a Bathroom

Sistered Joists not secured

Electrical system raised enough flags that a Professional's Evaluation was recommended

Roof Damage to the point where a Professional's Evaluation was recommended

Structural Damage to the point where a Professionals's Evaluation was recommended

Flashing Not Installed On Roof

Along with about 36 other, more minor fixes.

Just wondering if this is a typical report for a "turnkey" property. I fully understand that houses age and it's difficult to cover every single issue, but also didn't want to be taken advantage of because this is our first.

Does it make sense to buy points as long as you plan to hold past the breakeven point?

For an additional $1600 we can lower our monthly payment by $50. This would take 2.6yrs to get the $1600 back and we do plan to hold longer than that.

Any help on this topic would be great.

We are under contract for our first rental. We contacted our lender and started the mortgage process.

We explained to them that we were looking for a 20% Down loan. We were told that the fees associated with that loan would not make sense at that time (one week ago) and that we should wait until the market permitted to lock in that loan.

We received and signed a loan estimate at 25% Down to order the appraisal.

This estimate put Origination Fees as follows:

2% of loan amount (Points) - $2,393

Processing Fees - $650

Underwriting Fees - $995

We just received another to sign to lock in our rate, but this one has the same fees as follows:

3.875% of loan amount (Points) - $4,635

Processing Fees - $650

Underwriting Fees - $995

Why have these fees jumped that much?

Origination is only lender fees, correct? This doesn’t even lower the interest rate, right?

Any info could help. Feeling a bit lost at the moment and we received the email at 4:27pm and didn’t see it until after 5pm. So now it’s too late to have a conversation with the contacts at the lender’s office.

Just a Noob freaking out, or legitimate concern?

Thanks.

We are under contract for an out of state turnkey rental. Trying to gather insurance quotes.

What advice could you offer?

What should I be looking for?

What should I add/leave out?

What deductible would be best?

Should I be shopping nationally or locally to the property?

What company should I use?

Any info on the topic would be great.

I understand I may be opening myself up to relentless response from insurance brokers)

I'm in the process of purchasing our first rental. I'm just wondering if I should be separating my Vacancy, Repairs and Cap. Ex. accounts or if I should lump them all into one savings account?

I'm going back and forth on the issue of down payment percentage. I'm not sure whether to go with 20 or 25 percent.

With the 25, I increase cash-flow and equity.

With the 20, I reserve cash to put toward my next rental property.

What experience or insight does anyone have to share on this choice. This will be our first investment property so we are trying to get tips and tricks from anyone we can.

Thanks.
Mike

How do I determine the best avenue for my real estate investing future? What is the best way to be structuring my business?

We are shopping for our first turnkey property and have a complimentary consultation on Monday to "set up our corporate structure."
I'm sure I will be getting sold the whole time on this call but want to know the best way to proceed before getting to the call.

Any insight would be appreciated.

Thanks