All Forum Posts by: Sam Fickel

@Jack B. Nobody wants to keep a 18% loan for 30 years, let alone 1 year. Anyone can get traditional financing in 2 years, be that bankruptcy, starting a new business, credit repair, gaining qualified income, showing cash flow to get a business loan, etc. Sure, the loan Term would be 30 years, but you won't have your money tied up that long. Nothing's stopping you from adding a 5-year balloon!

Increase your income. Get your credit score to at least 720 if not 740. Keep your debt low and DON'T GET A BRAND NEW TRUCK JUST BECAUSE THE SALESMAN SAID YOU CAN QUALIFY FOR IT

@Jason Bott thank you so much! That is exactly what I was wondering!

Holy Democrat, they're really charging 3% for property taxes? That's absolute insanity dude.

1% is pretty standard in most markets. That would give you $2000/year more, which would make it a pretty obvious slam dunk.

I'd probably still seriously consider it.

Also, I don't suggest including income taxes in your evaluation. There are so many different factors that can affect the tax liability of the property, (especially as you develop a portfolio) and it's very easy to claim it as a loss if you have a good CPA. It's just a lot more headache to deal with, IMO.

0 for me. When I get my first rental property, I don't plan on dealing with any of that ish, just gimme the money. Partly because I make a pretty darn good living, so I don't have to pinch pennies if it saves me time that I could be getting more clients.

Besides, I don't think I have the kind of personality to put pressure on someone to pay rent if they're late or break something. I'm too empathetic and forgiving and trusting. So I need someone else to do it for me haha

I know it's not much consolidation, but no lender will let them buy a house without paying off the judgment first. So if that is ever in their future, especially if they earn a solid income, then I could see you collecting at some point in the future.

@Lara White I currently use a broker for my insurance but curious if there was a difference between normal agents and specifically investor-friendly agents, like one would specify with an insurance agent

Everyone stresses the importance of finding a real estate agent who is investor-friendly and who also is an investor themselves.

But what about insurance agents?

Are there different policies or coverages that you would want an investor-friendly insurance agent to specialize in? What makes you decide who to use for insurance on the investing side vs personal side?

@Tyler Anderson you get the loan in your name and then report taxes and cash flow through the LLC. The debt doesn't have to be in the LLC's name, and after the loan is complete you can almost always do a quit-claim deed into the LLC to put it on title. But you don't even really need to do that.

Ideally, you would pay everyone back that put money in, and THEN split the profit. 

So if A brings $20k for a down payment, and you pay $10k in materials and rehab and whatnot, and the gross profit was $50k, then you would split a $20k net profit. 

The percentage of the split is up to you. I'm doing the same thing (as the lender) and the other guy is doing 100% of the work, finding deals, and everything. And we're splitting 80-20. I've heard of 50-50 but that's frankly too much profit for me doing absolutely nothing haha