All Forum Posts by: Drago Stanimirovic

Yes, you can use the paid-off house as collateral without transferring it to the new LLC. The original LLC can take a loan against the house's equity to help finance the new property. Transferring ownership to the new LLC is possible but may have tax or legal implications.

Let me know if you need further assistance with financing!

The 70% rule is a solid starting point for investors, especially for those doing fix-and-flips. However, as mentioned, it's more of a guideline than a strict rule. Markets differ, and experienced investors often adjust the percentage based on local conditions and their exit strategy. I think the key takeaway is flexibility→ knowing when to apply the rule and when to deviate, depending on factors like the property’s location, your strategy, and financing options. Always run the numbers conservatively to protect your profit margins.

Best of luck to all the flippers!

Drago

Hi Darren,

Your passion for real estate and collaborative mindset is impressive. If you're looking to explore financing options or need support on deals, I'm happy to help. Feel free to reach out anytime.

Best regards,
Looking forward to connecting!

Drago

Hi Shahin,

To find private individuals willing to lend from their 401(k), savings, or home equity, consider joining local or online real estate investment groups (REIAs), networking with financial advisors.. If you need further assistance or want to explore financing options for your upcoming projects, feel free to reach out!

Best regards,
Drago

Hi Andrew,

After your verbal agreement on seller financing terms, the next step is to formalize it legally. Start by drafting a written agreement that includes all the terms, like the price, interest, and payment schedule. It's best to involve a real estate attorney to ensure the contract is legally sound. You will need a promissory note and either a mortgage or deed of trust. Make sure to conduct a title search to confirm the seller has clear ownership of the property. Finally, arrange for a formal closing and record the documents with the county to make everything official. 

If you need help with financing or have any questions, feel free to ask!

Best,

Drago

 Anytime Noah. Good luck with your research and learning! Drago

Hi NOah,

To stay on top of market data, I recommend using a combination of national and local sources. Websites like Zillow, Redfin, and Realtor.com offer great insights into home prices, trends, and inventory levels. For more in-depth economic and housing data, the National Association of Realtors (NAR) and U.S. Census Bureau are useful. Additionally, local MLS data or city-specific real estate reports can provide more granular insights for your target market.

For news and broader economic trends that affect real estate, check out HousingWire and MarketWatch. Subscribing to local real estate newsletters or attending local market meetups can also give you a better feel for what's happening in your specific area. Combining these will give you a well-rounded view of the market. Best of Luck! Drago

Hi Anthony,

It’s great to see your focus and dedication to learning about real estate investing, especially with such clear goals for your family and future. Building a solid team is a smart priority, as real estate investing is much more efficient when you have a trusted group of professionals→ agents, contractors, lenders, who understand your goals and the local market.

Your plan to own four long-term rentals in the next four years is both realistic and attainable, especially with the type of property you're targeting. Rochester, NY, and its suburbs could be great markets for this, with steady demand for single-family homes in good neighborhoods. It’s clear that you’re taking the right steps by educating yourself and connecting with others in forums and groups.

Keep leveraging the knowledge you’re gaining, and remember that patience and consistency are key. If you ever need any guidance or help with financing as you move forward, feel free to reach out. 

Best of luck on your journey toward building generational wealth and achieving your goals!

Drago

Marcus, you're spot on about the importance of embracing an investor mindset in real estate. It's not just about the transactions, but about viewing each property as a long-term asset and considering its potential for growth and income generation. This mindset requires constant learning, careful research, and staying proactive to identify market trends and new opportunities. Networking with other professionals is crucial because it opens doors and provides insights that may not be apparent on the surface.

Resilience is key, as market fluctuations and setbacks are inevitable, but those who adapt and learn from challenges come out stronger. The strategic approach you mentioned helps in mitigating risks and positioning yourself for long-term success. Real estate is a marathon, not a sprint, and having a big-picture perspective allows investors to grow wealth steadily while navigating market shifts with confidence.

Besta regards,

Drago

Hi Michael,

You're absolutely right, financing can often be the unseen factor that erodes an investor’s profits. Many investors stick with traditional financing methods without realizing the impact of fees, slow approval times, or rigid terms that may not suit their investment strategy. This can lead to missed opportunities, especially when speed and flexibility are crucial.

Personally, I’ve seen investors switch to creative or alternative financing options, like hard money loans, private lending, or even seller financing, to avoid some of these pitfalls. While these alternatives may come with higher interest rates, the flexibility they offer such as faster closings and more lenient terms often outweighs the upfront costs, especially in fast-moving markets.

For example, hard money loans can give you the ability to close quickly on distressed properties, which traditional banks may take too long to approve. Private money lenders can also be more flexible with terms, allowing you to structure deals in ways that better match your cash flow needs or renovation timelines.

Re-evaluating your financing strategy periodically ensures that you’re optimizing not only for the best rates but also for terms that align with your investment goals. Have you considered alternative financing strategies, and if so, how have they impacted your results?

Let's keep this discussion going to help others improve their strategies too.

Best, Drago