All Forum Posts by: Tahra Wright

@Alex

@Alex Palma Yes it does give you phone numbers.  It will give you a list of numbers, but they could be any number they have ever had, so you have to call each and see what's current.

You don't have to be an agent to get MLS access. In NJ there is a way you can be made an "assistant" under another agent (if their broker will allow it), and you pay a fee but you get full access. My husband is an agent and we do this for two other investors. However, the benefit of my husband being an agent is that he can get leads on listings as soon as they hit the market by checking in throughout the day on the daily hotsheets, plus you get all of the other information about the listing that's not on a 3rd party website and you can go to the property on your timetable and not have to schedule with another agent a time that works for them. Plus as an investor, esp for REO properties, I go direct to the listing agent to put in an offer. This allows you to build a relationship with them. I only use my agent to sell my flips.

Oftentimes if it's vacant and you look up the address in the tax records, it may still just have the property address listed as the mailing address for the person who owns it.  If that happens, what I do is log onto whitepages.com and search their name in the city and state where the property is located.  It will give you a bunch of people and list of addresses,  I check for the person who has that property address on their list to make sure it's the right person.  If there is a new current address, then I mail to that address and to the property address.  They may still be getting mail forwarded from the property address.  I have a subscription to white pages that is $9.95 per month, I find it to be great.  It also gives phone numbers too.

Hi there!  Yes,  I struggled with this too and for years only invested in my backyard.  After listening to BP and getting to hear about the possibilities of CF properties in other markets my husband and I decided we would consider out of state purchases.  Where we live it's more of an appreciation play and not so much CF, depending upon the circumstances. So what we did was set a goal to research three markets that we have heard are great for cash flow, where we have either family or friends in or from those areas.  We would research online on city websites, talk to friends/family, look for property managers/agents in those areas on BP and connect with them. I have one broker I connected with on BP who is a property manager, works with investors and is constantly sending me listings so I can get a feel for what properties are like and what rents you can command.  She is excellent!  We started that process with Pittsburgh and are now planning a visit.  I think connecting with property managers from those areas would be a critical step.  There was also a great podcast episode on November 29, where the guest (Monick Halm) gave a great process (indicators) to determining where to invest out of state.  hope that helps!

@Clifton Young Yes, I have, but not on my buy and holds. I did it on a flip property when I was getting financing through a broker. At that time the rate and terms were better individually than through the LLC for a construction project, so I did the loan in my personal name and transferred it to the LLC for liability purposes. Didn't have an issue doing it, but that was a flip, not a long term hold.

I typically create a new LLC for each rental property so it never has a financial history. The Banks will look to your personal financial capability. The will ask for your last two years tax returns, W-2's, most recent pay stubs and two months bank statements as well as statements of other assets you may own, as well as your credit score. They will, of course, also ask for a personal guaranty. Check with local banks as they tend to offer loan products for small businesses or smaller investors. I'm in NJ and spoke with (so far) three local banks headquartered in my state. One offered a business entity loan, specifically for LLCs purchasing 1 to 4 families. They have a 5.25% rate and 30 year fixed for rentals!. The other two banks didn't offer anything as favorable, but one had a great construction loan product for my flips. Point being, don't assume you will be denied, just do research, find local banks and start asking them what products they offer and what they want to see. Good luck!!!

Agreed with those posts above....or try to bid for it at the auction!

I had great success with local banks. I'm in NJ and made it a goal to call every local bank that's headquartered here in NJ and see what types of products they can offer to me as a real estate investor. One of the banks offers a "business entity loan" product for LLCs that buy 1 to 4 family investment properties. 20% down, 30 year fixed conventional mortgage at 5.25%, with a personal guaranty by me and my husband who are the only members of the LLC.

@Dan V. Thank you!  I will start researching this.  I'm torn between doing this myself and hiring a bookkeeper, but I don't think I have enough activity at this point to justify paying for a bookkeeper!

Can I use quick books for flips too? For example, if I have three flips under one LLC during the year, is it possible to set up a QB account for each flip and then at the end of the year integrate them for a final p&L for that LLC? Right now I just have separate spreadsheets for each flip and I send them to my accountant, but I don't think that's efficient. Or do you set up an account for the LLC and then a sub-account for each flip? I hate bookkeeping, but not yet interested in paying a bookkeeper so I am looking for something relatively easy!

Thanks!!!