All Forum Posts by: Clay Smith

Go with the HELOC. A line of credit won't commit you to a monthly payment unless you use the money, so you can avoid paying interest when it's not in use. Refinancing will change your mortgage rate, and if it's worse than your current rate, it's not worth it unless you're getting a great deal. When going for a HELOC, aim high on your home's value — let the appraiser bring it down to what it's actually worth rather than underestimating it yourself.

Cash is king. Buy your next property with all cash, fix it up with cash, and then do a cash-out refinance afterward. This approach will help preserve your operating capital. Don't worry about setting up an LLC right now. Start by using a land trust and transfer the deed to your LLC later, once you've acquired a few more properties.

If you’re willing to move and remodel, consider getting a 30-year loan on your next property. In this case, buy something that needs very little work so you don’t deplete all your cash. The objective is to keep as much of your operating capital intact as possible.

The goal is to buy, fix, finance, and avoid leaving cash in the deal, so you always have liquidity for future projects. Look for a local credit union that can offer a cash-out refinance once the work is done, ideally with minimal seasoning. It's a bonus if the bank offering the HELOC also handles BRRR loans — they'll be more flexible and accommodating when it's time to pay off the HELOC with a new loan!

A rental just needs to be clean and servicable. Color of windows won't increase/decrease rent 

LMHA is relocating residents from Dosker Manor due to mold, rodents, and crime.

Dosker Manor will be torn down, and residents will be moved to other accommodations.

LMHA surveyed residents; they need help with medical care, groceries, and financial management.

Relocations will start in August, with around 600 residents moving over 18 months.

The first 100 residents will move to LMHA-owned properties; the rest will go to low-income housing.

LMHA is covering moving costs and offering reimbursements up to $1,300 for self-movers. Residents must settle overdue rent before moving.

The Section 8 housing voucher waiting list is closed, with a wait time of three to five years, but Dosker Manor residents are being moved to the top of the list.

LMHA has 2,800 apartments citywide, with 1,500 past due on rent, but no evictions for non-payment in four years.

What do you mean NOT 1%? You would accept .8% or look for 1.2%? Are you looking for 100% of your money back at end of the deal or willing to leave some in?

For Jefferson County, I do %.0125 for Taxes. Vacancy at 4%. Repairs & Capex 10%. Today's rate is 6.6% min (5-year treasury + 2.5%). Insurance maybe $65 month max.

Yes

Sounds to me like you made the right offer. You are looking for a scared or distressed seller who will accept. The fact that they were surprised and offended tells me no one prepped them for the offer. There should be a discussion between agents about price prior to an offer between agents. Deliver the bad news early and let them think about it before the offer comes in. A "flinch test" can go a long way.

Ultimately, you want to get to a place where you buy the property (all cash, hard money, construction loan) and then finance yourself out to get appraised value. Find someone with grey hair and 100k and start a partnership. Do a deal and see how it goes. Make sure they are financially stable and a good compliment to the way you work. Once you get more experience decide to go at it alone or scale up

Try GetHappyBalls dot com. They are a local Louisville, KY homemade kitchen that makes Bourban balls and they are great Christmas gifts. We sent them to our larger clients. I don't drink but the local KREE Holiday party had nothing but 4 roses, Woodford, Makers Mark, and bourbon in every Secret Santa gift.

When I read the following it tells me that if you do not have someone in Indiana then you become the "someone". Michelle Rawn or John with Rawn Law Firm handles LREI Property Management LLC evictions in Indiana and they can answer more. I do not believe this ever comes up in court.

(c) A person who fails to comply with subsection (a) becomes an agent of each person who is a landlord for purposes of:

(1) service of process and receiving and receipting for notices and demands; and

(2) performing the obligations of the landlord under law or the rental agreement.