All Forum Posts by: Terri B.

@Terri B. No, you’re free to do a private deal. You’re not getting paid to buy it so it wouldn’t go through your broker but you better make sure you disclose you’re an agent to the homeowner in the contract.

@Terri B. Depends on your situation. How wealthy do you want to be? Leverage and have others pay the debts. Rinse and repeat!

@Terri B.

To increase your Cash on Cash return on investment, it may be beneficial to use debt to obtain income and asset appreciation with less cash expenditure. However, it is important to note that the absolute profit per month will be higher without debt. The decision to use debt or not ultimately depends on one's priorities.

Regardless of your choice, it is crucial to maintain the property in good working order and have sufficient insurance coverage as a defense against liability claims. Some people also suggest forming LLCs to contain liability in certain circumstances.  It's a good idea to consult a lawyer and/or insurance company for professional advice on these specific matters.

@Terri B. If you don't have any equity then there's nothing to sue for. But that assumes you have minimal equity within a LLC and you've operated the entity in a fashion that cannot be pierced. That also assumes that you have a fair amount of equity in the first place, which most people thinking about this scheme don't have.

As others have said, if you want asset protection then be intentional about it. The primary reason to leverage the asset is to increase your returns, or diversify your holdings. Anything less than those drivers is a distraction.