All Forum Posts by: Michael X.

I was going to name my LLCs by the property address like Ann Bellamy above since its easy to remember and the names are normally available. However, I decided to be more generic in my naming so that I can reuse the LLC again on another property once I sell. It saves me the $250 setup fee with the state and all the paperwork that goes along with setting one up. Besides its good to recycle right?

Example:
Instead of 1286 Broad st I use something like KA1. I just keep going with the numbers as I get more LLCs (KA2, KA3, KA4, etc).

File!!!!

Some random advice and life lessons...

Cheryl C. I have lost lots of money and learned many lessons. Since I would hate for anyone to lose hard earned money here are my thoughts.

#1 Make sure that the person has been in business for awhile.

#2 Request documentation! I would like to see the LLC operating agreement and auditor reports of all properties in LLC name. Maybe credit lines from banks as well. Ask for before/after pictures of properties with financial details of reno costs, expenses and cash flow. Ask to see lease agreements.

#3 VISIT the area meet your potential partner and see how the "machine" works in person. My version of investing and houses are probably a lot different than others on BP. You need to find someone that you are comfortable with and invests in properties that YOU feel comfortable with. Flying out to meet a potential partner is the CHEAPEST due diligence you will ever spend! Better to be out $800 than 50k!!

#4 I would ask for first lien on the property to secure your investment. It's sad but LOTS of people are more interested in scamming money at least you have some protection.

Hope this helps

I like your style Nigel Dixon. Your investing approach is a lot along the lines of what I am doing. I'm currently working with local community banks to continue funding new acquisitions.

Here is what I have encountered:
Banks really like my rental bottom line. Very little debt and high cash flow. One requirement is that you have to be in business for at least a year. This is sort of a stumbling block but they are helping out with what they can. It will be a lot more after a year. However, it is enough to fund new purchases just not at the pace I would like.

I'm currently trying to build credit in the LLCs name. This is very important to me as I think it shows a well rounded company. I'm pushing for credit cards and lines of credit. So far I have been pretty successful.

One of the current banks I'm working with is offering to loan against individual free and clear houses based on the cash flow with pretty good rates. I would rather have that type of loan on a case by case bases just because my goal is 10 free and clear SFH before I move to larger multi units or large NNN commercial. I will borrow the money then use all of the rental cash flow to pay it down. Is that the best strategy? Depends on what you want. I like free and clear SHF that I can keep or roll into larger properties later down the road. Good luck!

Hope that helps

Columbus has some active monthly real estate meetings.

Nice feature for sure. However, when I click the back button it still puts me to the "top page". I wish that it would return to the topic that you clicked on. Maybe I'm doing something wrong? I'm using Chrome browser.

Jeff Thompson

The link you posted has some serious information and I'm still digesting most of it. I will have to read over it several times.

Thanks!

Greg P.

I looked at a laundry mat about a year or so ago. I really liked the property and would have purchased if I had not move. What I really liked is that I was buying the business and the PROPERTY at the same time and it included a smaller separate building on the property that had a hair salon and auto repair shop renting. I would have been getting income from two rentals while running the laundry. This was very appealing.

I asked for 3 years of utilities so that I could see trends in how much they costed and whether I could save money. I was going to keep the current employees that they recommended and get replacements for the others. I wouldn't have changed much for the first few months.

If you want PM me your email and I'll send you the excel stuff I did. Nothing that great but it will give you an idea of what I was looking at and possibly a template for future due diligence.

I know that a lot of the posters above caution the purchase of a coin op laundry but they can, and many times are, sound investments.

Good luck.

@ Everyone

This is an excellent thread. It is really good to see so many people able to handle 10+ properties. I've been inspired!

Nigel Dixon
I'm a big fan of owning SFH free and clear. I say sell and buy 3 more. This is the time to get the best deals with depressed pricing. The cash flow from the three new houses will allow you to buy something else OR it will pay for the house you are currently renting.

Pull the trigger and sell, sell, sell!