All Forum Posts by: Ryan Denman

Hi All,

I am going to doing setting up some lease options in Colorado.  Has anyone done a lease option in Colorado recently?

Has anyone out there done an extensive amount of raising private funds as small loans ($1,000 to 35,000) from friends and family members with interest paid on the loans?

For a private loan that I use to invest in real estate and then pay back with interest (lender gets only interest, no equity in deal), do I need to send the lender a 1099 showing how much interest they received?

Are there any other legal implications to using privately borrowed money to invest in real estate that I should be aware of?

I live in Colorado (Erie) and will likely be investing out of state (OK, MO, OH, AL, OR)

I believe consulting with a CPA or lawyer would be wise on this, but looking for some general opinions on how much paper work needs to get done so the IRS does not come knocking at my door. 

Thanks!

I have been looking at turn key properties in markets other than mine (Denver metro) and am ready to get started.  I plan to buy and hold for a while (5+ years), so I am not super worried about any recessions that may come up in the next few years.  My plan is to find deals that are in desirable areas (good schools, neighborhoods, etc.), desirable properties (updated, 3 bed + 2 bath, garage, etc.) and have enough cash flow to adjust rents down if there were some serious drops in the market rental price.  I also plan on looking at how the markets I am looking at fluctuated in last real estate bubble, to find a market that is less prone to wide swings in price.  

Aside from those factors what other things could I look for to minimize risk for a turn key property on the eve of the next recession?

I would say the frequency of walkthroughs should be every 6-9 months, unless there are signs of the property not being taken care of and then they should be more frequent.  This of course should be spelled out in the lease and proper notice given before the walkthrough.  

Walkthroughs are also great for catching little maintenance issues that the tenants might not be reporting, but could cause issues if left unfixed.

It was humorous at one a walkthrough I did on a property, that when I delivered the notice a few days before, the outside trash bin was closed, but as I arrived for the walkthrough it was overflowing!  Periodic walkthroughs can be a good little nudge for tenants to do some spring cleaning.

In my market (Denver metro) properties are pricey and the amount of money that could be saved on interest for a 15 year vs 30 year mortgage is significant.  I am thinking that properties here would be best utilized by leveraging equity in them to buy more properties, and the 15 year notes would also help with that.  

I am also looking at properties out of state (less than $100k), and think that going for high cash flow there with 30 year notes would be best.

What are the prevailing opinions out there about 15 year versus 30 year mortgages on rental properties?