All Forum Posts by: Gordon Olson

Thanks Steve. Since I just purchased my 1st property a few weeks ago it sounds like the bank would then only lend to me if my purchase has some equity in it as well, right?

 I have another friend, actually the person that introduced me to BP who is also a Pro member like me @Delmas Gibson that has questions as well about being able to borrow or get funding when one owns an LLC.

Are there any issues that might make it challenging to borrow funds due to LLC ownership? Delmas, feel free to restate what the issue is as I don't remember exactly how you put it.

Thanks.

UPDATE: Good news! Since I last wrote this my loan situation has improved and upgraded! I know am approved for a duplex with MN down payment assistance provided I meet certain criteria with it. So I'm going to be able to get a duplex after all. I'm still working on finding a down payment though so I can get a conventional loan and do a rehab as well.

@Tim Swierczek Tim, I think I'd like to do that. Just because I got an FHA loan approval still doesn't allow me to BRRRR a duplex like what I really want. So I'm self-limited to no rehab for my 1st property and my search results using the calcs here and Rentometer have given me poor results for the ROI's I'm looking for. I may need and indeed it may be good for me to learn other ways to finance.

Best way to get a hold of you?

@John Woodrich And I agree, John. That's ideally what I want to do. But my loan amt just isn't enough to get me into duplex (side by side I hope!). I'm currently capped at @ $210K.

I've met @Tim Swierczek BTW so I know who he is. :)

I've been approved for an FHA loan so I need to live in the property for a year. I don't have any money yet for a down payment. The loan apparently doesn't allow me in the state of MN to have both a 203k loan and state down payment assistance so I either need to come up with a 3.5% down payment or skip rehabbing.

With regards to that, without taking on roommates single family properties don't show good cash flow in the outlying areas of Northwest Minneapolis. Any ideas of how to do rehab while still getting a regular FHA loan? Or can't this really be done.

Thanks.

@James Galla And/or from any remaining balance left over after the monthly mortgage payment is paid, correct? 

What about the sale of properties? Is some of the income just held back from this and taxed? I'm assuming you don't have to use all of the sale of a property to be eligible for a 301c deferment. 

I am new to REI and here's my situation:
I'm a little confused as to how the actual income is made from REI. When house hacking does one just keep for themselves whatever income is not used to pay mortgage payments and make wealth from passive income? Or when you sell a property do you just keep some of the sale for yourself?

And how is it taxed? Being in business for myself I assume I just have to keep track of how much income I make. But if in the case of doing a 301c where would I make any income off of that as long as I defer it and never see it? 

Thanks for the clarification.

Gordon Olson

@Wren Martin All good information! The only question/issue with this is posting properties on Craigslist or here as that may constitute selling a property I don't actually own. Unless I'm wholetailing I can't do that.

Can we post wholesale properties on BP?

@Wren Martin Thank you Wren! A lot of good info here. I've already done research into wholesaling. Just looking for ways to find buyers, which seems to be a better 1st step than finding sellers.

There's a fire-damaged property via an MLS listing I've been following for some time now. I've already run some numbers on it. I think what I really need at this point is to find a mentor for assistance. It's ok to learn from one's mistakes but it's even better to be able to learn from other's mistakes 1st! :D