All Forum Posts by: Mike Schoonover
Mike Schoonover has started 2 posts and replied 9 times.
Post: Looking for business checking acct recommendation
- McMinnville, OR
- Posts 9
- Votes 1
Quote from @Henry Clark:
Recommend you use the financial group you’re doing your investing through. Not worried about credit ratings. Am wanting recognition with the bank or finance group I’m doing business with.
Would reconsider USBank. They are nationwide which make it easier for multi state investing. They do both commercial and retail banking. I’ve had great success with them. Develop a relationship with their commercial banking. They will take care of any issues you have on the retail side.
Appreciate the input.
Post: Looking for business checking acct recommendation
- McMinnville, OR
- Posts 9
- Votes 1
Quote from @Kevin Sobilo:
@Mike Schoonover, generally speaking don't expect to have business credit because most real estate investment isn't really an active business. The value is all in the assets being held.
That said, it doesn't mean you can't get debt in the name of the LLC but you will have to personally guarantee the debt. It works that way for a credit card or even a mortgage on a property. It won't show up on your personal credit because the debt is in the LLC's name.
I would look to work through a local bank or credit union in the area you plan to invest in. They are more likely to serve your needs especially when it comes to any kind of mortgage or LOC.
Post: Looking for business checking acct recommendation
- McMinnville, OR
- Posts 9
- Votes 1
Quote from @Kevin Sobilo:
@Mike Schoonover, generally speaking don't expect to have business credit because most real estate investment isn't really an active business. The value is all in the assets being held.
That said, it doesn't mean you can't get debt in the name of the LLC but you will have to personally guarantee the debt. It works that way for a credit card or even a mortgage on a property. It won't show up on your personal credit because the debt is in the LLC's name.
I would look to work through a local bank or credit union in the area you plan to invest in. They are more likely to serve your needs especially when it comes to any kind of mortgage or LOC.
Post: Looking for business checking acct recommendation
- McMinnville, OR
- Posts 9
- Votes 1
Hello,
I have a newly formed LLC that i am trying to open a business checking account for, id like to start working on the business paydex score as well as hold a few hundred thousand while im working through deals.
I just got denied by amex because they dont want to work with holding companies right now. Can anybody recommend a banking partner that works well with what im trying to do?
I would prefer an interest bearing account and have a bad taste in my mouth for Wells, BOA, and US bank.
Cheers
Post: Just inherited 485k house, considering offering seller financing
- McMinnville, OR
- Posts 9
- Votes 1
Quote from @Alex Olson:
@Mike Schoonover Of course I am partial to KC since I live here but like @Matt K. says I think there is an opportunity here in the midwest to make some great cash flow with some good appreciation AND fewer legal constraints/renter issues. I can show you a few real examples of investors who have sold their property in CA and bought in KC with the amount of money they cash flowed. The transaction is tax deferred through a 1031 exchange which is the best wealth building tool that too few people use.
Post: Just inherited 485k house, considering offering seller financing
- McMinnville, OR
- Posts 9
- Votes 1
Quote from @Mark Pedroza:
Quote from @Mike Schoonover:
Hello, I recently inherited a home in Solano county, the home is paid off and was owner occupied since built and was well taken care of with multiple upgrades over the years.
I initially intended to rent the property but i would only net $1,800 a month in doing so. This feels like a light return on a 485k asset, and my thinking migrated towards selling the property and moving the money out of state and purchasing other rental properties.
During my deep dive into self taught real estate investing i came across the idea of creative financing, and started running numbers on my monthly cashflow if I carried the note, with current interest rates, with favorable interest terms to me in exchange for a low down and relaxed qualifying factors, and the hypothetical cashflow doubled.
My question is, is this doable for a first time home seller? I would want to bypass realtors so i would need to learn that side, along with the need to learn how to draft a note with terms and navigate all the other legal pitfalls that could sink my idea. Im not against paying professionals to take care of the needed steps im not qualified for but i dont know where to look, nor do i know everything i need to look for.
Watching Pace do deals makes it look effortless on the seller financing side, but hes done enough deals that its all muscle memory. Am I insane for trying to be the bank on my first home sale? Ive been looking for resources but it feels like i get 2 new questions with each answer i find.
Seeing that your in CA, you might get hit with the Parent-Child Transfer provision.
For additional info read this article: https://www.sccassessor.org/ta...
Good luck...
Post: Just inherited 485k house, considering offering seller financing
- McMinnville, OR
- Posts 9
- Votes 1
Quote from @Steve Vaughan:
I've sold plenty with seller financing- to spread out the tax hit.
No tax hit inheriting with stepped-up basis.
Lots of ways to screw yourself up. No tax benefit. Sell it regular.
A lot of publicly traded REITS are paying dividends of over 10%. Maybe get cf there.
Post: Just inherited 485k house, considering offering seller financing
- McMinnville, OR
- Posts 9
- Votes 1
Quote from @Mason Hickman:
What’s the main reason for wanting to offer seller financing? Since you just inherited the property, it should have a stepped up basis so capital gains should be very low, if any.
Also, don’t draft a note on your own. Pay an attorney to get it done right.
I understand i would be taking on serious risk with a default, and the costs of foreclosure may sway my thinking but the property costs me very little when it does not produce income, so the risk feels manageable. but if i just list and forget im only going to have 420ish to play with, as opposed to 40k every year for hopefully 30 years to play with. I would probably make bigger mistakes playing with a big chunk while learning what im doing.
I dont hate the idea of partnering with a realtor, buy coughing up the commission out of pocket tastes bad, so that would need to be covered by the down payment.
Post: Just inherited 485k house, considering offering seller financing
- McMinnville, OR
- Posts 9
- Votes 1
Hello, I recently inherited a home in Solano county, the home is paid off and was owner occupied since built and was well taken care of with multiple upgrades over the years.
I initially intended to rent the property but i would only net $1,800 a month in doing so. This feels like a light return on a 485k asset, and my thinking migrated towards selling the property and moving the money out of state and purchasing other rental properties.
During my deep dive into self taught real estate investing i came across the idea of creative financing, and started running numbers on my monthly cashflow if I carried the note, with current interest rates, with favorable interest terms to me in exchange for a low down and relaxed qualifying factors, and the hypothetical cashflow doubled.
My question is, is this doable for a first time home seller? I would want to bypass realtors so i would need to learn that side, along with the need to learn how to draft a note with terms and navigate all the other legal pitfalls that could sink my idea. Im not against paying professionals to take care of the needed steps im not qualified for but i dont know where to look, nor do i know everything i need to look for.
Watching Pace do deals makes it look effortless on the seller financing side, but hes done enough deals that its all muscle memory. Am I insane for trying to be the bank on my first home sale? Ive been looking for resources but it feels like i get 2 new questions with each answer i find.