All Forum Posts by: William P.

LVP is pretty easy to do.  My wife did our sunroom/dog play room herself and she has no experience at all.  We got the best level Home Depot had to offer - I assume could spend more.  It looks ok, and better than the old Pergo you used to see,

I think this tenant is annoying, AND I think you have some issues as a LL.  You are renting a relatively higher end place, but are not willing to maintain as such.  He's detail oriented and annoying, for sure.  But your reliance on the notion "it was ok when we lived there" is also a problem. Appliances break.

  If I was a tenant in a 3K a month home with a 17 year old fridge that wasnt working properly, and the LL told me to find a used fridge on my own . . . 
  

John - you need to sell the house ASAP, as you can't afford this type of investment, financially or emotionally

From your posts:

you have a kid coming

your wife is tired of hearing about the house, likely causing stress in relationship

you know you should sell house, but want to keep out of ego/pride

you have no life insurance

you were "desperate" for a tenant

you made less this year as a RE agent than last

My advice - dump the house, get some life insurance, spend all the time you have been spending on this "investment" working on building your RE business in Brooklyn.

 No, use typical discount brokers to hold investments at this point.  Possible to adjust where keep some funds.

want to buy a 2-4 unit building here in Calif. Will be partnered up with 1 other person and will hold the building in an LLC.

The situation

- property will cost ~750K, wont need major rehab, would pay any rehab in cash.

- both partners good credit

-  want to have 30 year fixed amort financing, plan to buy and hold

- cash down payment of 25 or 30% is avail 

- no experience in prop mgt or RE investing, will outsource prop mgt

- One partner has W-2 corp job, other is taking some time off but doing part time consulting. Had W2 job in 2018. DTI sufficient for either partner to buy property.

Major importance to keep LLC "veil" intact.

My questions

what type of lender to consider?

what is their underwriting criteria?   

Will lenders want a personal guarantee? 

would placing significant reserve cash ($50-100K?) into the LLC make any difference, knowing that the LLC owners could move it out i assume not.

what else should I consider? 

@Chad K. 

Deal really doesnt smell right. Glad you are doing the diligence. 

@Chad K. 

I am very skeptical.

Do buyers at the 150K home level typically signagreements to purchase a home before even the land is procured?   Is inventory that scarce that the buyer couldnt just buy a house that already exists?  At 120K construction cost, this isnt a luxury home, hard to believe that a buyer wouldn't prefer a home he could see, in a location he could assess.

I bet an partner of theirs already owns that land, and after you buy it, the plans to build on it will evaporate.

Funny quote from the article.  The current seller really took a bath.  Paid 41K, sold for 900.

The owner who proposed this unusual sale lives in Austria and has never lived in Detroit, and Else said that his client got ripped off the first time around. The owner, who is not sharing his name publicly, bought the home for $41,000 in 2010 after being told that he would make a quick profit by renting out the home. Little did he know that the person he bought it from had purchased the property just two weeks prior for only $10,500, Else said.

@Loren Whitney 

I had similar question to the orig poster. My current IRA is wtih Fidelity, and I want to move it to a SDIRA. Goals of the SDIRA is to invest in notes. Acct Size will be ~200K

Any tips on which SDIRA vendor is a good choice?