All Forum Posts by: Steve Dora

 Thank you!  I appreciate the insight.

Yeah, I think you're on the right mindset about the double interest (heloc downpayment & loan payment).  That's why I was leaning to foreclosures so I can do full cash (heloc) purchase.

The other part I need to get more fluent in is how to document all of those action items in the LLC to keep the corporate veil.

I'm glad I'm not the only one!  Good luck too!

 Thank you John!  I appreciate the advice!

Gotta start somewhere right?  I know this is not going to be immediate...I will be making mistakes, I just want to minimize the damage of those mistakes!

Appreciate it!

Hi! My former boss (retired) has inspired me to get into real estate.  I've made some foundational moves (heloc, llc, etc.)  But podcasts, books, seminars, I feel so lost still.  I'm definitely out of my comfort zone and I'm afraid to take the first step.  Hoping to gain some confidence and knowledge in the BP community!

First all together. My thinking is that with a heloc as the downpayment or in this case with a foreclosed property, it would 100% of purchase price, I could refinance using traditional methods and pay myself back.  

I have a few questions and I will definitely be seeking professional guidance as well, but wanted to throw this out in the forums.

Background: I have just opened a single member LLC. I have a personal HELOC on my primary home. I've been looking at foreclosure auctions.

1) If I wanted to use my HELOC to bid on a property and with my LLC in mind, I'm leaning to having to fund my LLC using the HELOC, with my bid price in mind (plus other costs) and then bidding on a property and if successful, write a check from my business account. This is where it gets confusing for me. If I go this route, I'll be paying interest payments personally. How do I invoice my company to recoop the interest and the payments on the principal?

2) Is there another option? Bid personally, sell to my LLC and take a conventional loan and repay myself after 6 months?

3) Do you have any experience on auction sites for foreclosed homes?  Any advice you would share?

4) Or am I totally in the wrong in and you have another avenue you think a new investor should look?

Thanks!

Steve

First post! I'm looking to buy a condo so I can rent it to my daughter and a roommate while in college and then continue to rent it out after she graduates. The condo I'm looking at just posted for $135K. For funding, I have a couple options, use my heloc (prime +0.5%) for the down payment and then conventional loan for the rest. It'll take a bit to pay back the heloc due to rent around $1200/month. My current idea is to offer a full cash (heloc) offer of $120K. After 6 months, I'd use my LLC to purchase the property for $150K. There are some comps out there around 150/160k. In the 6 months I'll be doing some rehab (paint, floors, some fixtures, new island, etc.). I then can pay off my HELOC. Based on my understanding, the loan for $150K w/ 20% down would be ~$1150/month (tax, hoa, and P/I). Are there other ideas to make this deal work? Thanks in advance!