All Forum Posts by: Miguel "Mike" Perez

Hi David,

Welcome.

You should come to the local meetup organized by @Account Closed.

I'll be there and you'll have a chance to chat with many local investors.

Here's the link and info.

Hope to see you there.

https://www.biggerpockets.com/forums/800/topics/278317-large-new-networking-event-announcement

Buy Renovate Rent Refinance Repeat The B in BRRR stand for buy, but it doesn't specify or outline how. The how just depends on the numbers working. It seems to me that there is technically a step missing since the method implies you buy the next property using the equity you get from the appreciation you force during the renovation step. If you go with your existing home's equity, it would be cheaper money to start the BRRRR process. Using HML will cost a lot more and you will still need HML if I'm not mistaken since most will only do 80% LTV so you'll need to come up with some funds anyway. Lastly, I would say use the calculators on this site to know exactly how much money you will need because in a traditional RE transaction $25k is spent quite fast. If you drop $25k on down payment there is no money left for closing costs that usually hover around 3% of purchase price as the buyer. Good luck.

Those improvements are probably already factored into the price.

Might make sense for owner-occupied considering you would not have another housing payment and or cash purchase which don't sound like a good fit for you at the moment.

Nice job of coming to a decision based on good data instead of "ballparking it."

You should start with what your goals are in order to answer your question but here's how I look at it. If you did proper deal analysis you would know your TRUE expenses and income and could calculate your cash flow. This site's rental calculator is a good start. If you know that then you could calculate your Cash on Cash Return or ROI on any cash you would put down on a deal. If you have $45k, do you have a better way to get a good ROI? If you do, then do that instead. If not, then this might be a good way to get it generating some additional cash for you. Hope that helps.

Originally posted by @Samuel R. Harden:

Not to sound rude, but if you're having issues determining which schedule to use, I'd be very wary of filing your own taxes. Even more so as it looks like you're an out of state investor taking on new buy and hold properties, which means you'll likely be making important repair reg choices if you're not buying turnkey.

Thanks.

Not rude and I appreciate your advice.

Can you elaborate on:

"important repair reg choices if you're not buying turnkey"

Hi folks,

Trying to figure this out and do the right thing while filing my taxes.

I established an LLC to run my real estate business and keep it separate from my personal stuff.

My leases are all under the LLC.

Tenants pay electronically into my LLC bank accounts.

Payments are made through LLC debit and credit cards.

Property is under my name, not the LLC.

:(

Financing was not keen on unestablished LLC at the time. Haven't transferred for fear of due on sale clause.

Schedule C and E seem pretty similar, so which one should I complete?

I have a feeling NOT both.

Thanks.

I don't think there is anything rude about a low ball offer and I agree with previous statements about if you think the seller won't like your offer, it's probably too high . If you are making and offer based on numbers that work as an investor then there's no shame. What I think is really rude is for someone not to reply or drag their feet when and offer is placed. Even a no is better than nothing. Better yet, give feedback on the offer and counter. If you don't answer I have to go chase your agent down and then I'm the bad guy. I'm slowly learning that agents get in the way many times. For example I fired two agents because they declared my offer too low without even looking at my numbers. I fired another two more because they never responded after I asked them to place an offer at a certain price. These were my agents mind you. Please place this offer on this property. RADIO SILENCE. Then when my agent does put an offer in the seller's agent doesn't respond and I have to ask my agent to get a response. It feels so inefficient. Sometimes I just want to do FaceTime with the seller and say what are your needs and how can we make this work?

@Lucas Machado

Left VM.

Thanks.

Originally posted by @Wayne Brooks:

@Miguel "Mike" Perez @Leah Ezra I would assume with the note this far in default, it is definitely under water? If so, nothing can be done without contacting the current note/mortgage holder, their loss mitigation dept.  They would require cooperation of all partis on the title/loan, and have to go through the normal short sale process.  Generally, a family member will Not be allowed to buy a property in a short sale.  However, if the bank does think they some enforceability/documentation defect (unlikely) they might be willing to consider it.

Thanks.

Sounds like the banks like to keep family interests out of it to reduce liability just like hard money lenders (HML) don't like to loan in owner-occupy situations. Make things really messy if the loan has to be called in.

Leah,

Regardless of which way this goes, you were going to have to pay for this home.  I'd prepare plan A to try and legally buy it from note holder, or plan B, use that money you would use to buy the home to buy another home or investment.  

You probably have emotional ties which will NOT help you in making the decision.  Try to be objective if you decide to go after this.

If you want it, go after it through the right channel even if you get no for an answer the 1st or 50th time.  Just make sure that once you get it, it is what you want and that the money and time you spent on it wouldn't have been better spent on getting another home or investment.

Hi Wayne, What's the right way to make an offer? This would help in this situation.