All Forum Posts by: Ty Coutts

Hello, Amy Lemaistre, I understand your frustration. These are a few things I would do to insure accountability. 

Take Photos: Capture images of the incomplete work, the removed alarm system, and the broken tile.

Written Records: Keep a written record of all communications with the contractor, including dates and details of conversations.

Scope of Work: Check the contract to see if it explicitly mentions the removal and reinstallation of the alarm system, as well as any handling of fixtures like the fireplace tile.
Breach of Contract: Identify any clauses that the contractor has violated by not completing the work or causing damage.

Formal Letter: Write a formal letter to the contractor outlining the issues, referencing the contract, and requesting a resolution. Include a timeline for when you expect a response.

Request for Repairs/Completion: Ask the contractor to either complete the work and reinstall the alarm system or provide compensation for the damages and incomplete work. 

Act quickly to ensure the issues are addressed, and consider consulting with a lawyer if you need further legal advice. Best of luck resolving this situation. I am a loan officer, so my advice is just advice. I'm sorry for the tough situation, and good luck with the resolution. I hope this helps!

Glad to help, good luck!

You're on the right track with your analysis and strategy for leveraging the farm's equity to fund your BRRRR projects using a HELOC. Interest rates for HELOCs vary based on several factors, including your credit score, loan-to-value ratio, and the lender's terms. As of now, HELOC rates typically range from 5% to 7%, but it's essential to check with multiple lenders to get the most accurate and competitive rates.

Joshua Christensen - I totally agree with these points as well. 

Leaving your W2 job can affect your ability to qualify for a HELOC. Lenders typically look for stable income when approving a HELOC. Although, there are still plenty of financing options that cater to your situation.

Hello, Autumn Brooke. When your tenant renews their lease and the rent increases, the handling of the last month's rent can vary depending on the terms of your lease agreement and local laws. However, here are common practices:

Adjust the Last Month's Rent Deposit:

Request Additional Payment: You can ask the tenant to pay the difference between the old last month's rent and the new increased rent. For example, if the previous last month's rent was $1,000 and the new rent is $1,100, you would request an additional $100 to cover the increase.

Update the Agreement: Ensure that the lease renewal includes a clause that reflects the new last month's rent amount.

Refund and Repay:

Refund the Previous Deposit: You can return the last month's rent from the previous lease to the tenant.

Collect New Last Month's Rent: Then, collect the new last month's rent at the increased rate as part of the lease renewal process.

Steps to Take:

Review Your Lease Agreement: Check the current lease agreement to see if there are any specific clauses regarding the adjustment of last month's rent upon renewal.

Communicate with Your Tenant: Inform your tenant about the rent increase and how it affects the last month's rent. Clearly explain the process you will follow, whether it's requesting an additional payment or refunding and recollecting the last month's rent.

Update Lease Documents: Ensure all changes are documented in the lease renewal agreement. This should include the new rent amount, the updated last month's rent, and any additional payments required.

Handling the last month's rent when renewing a lease with an increased rent can be straightforward with clear communication and proper documentation. Feel free to reach out if you need further assistance.

Hello, Scott Deetlefs, here's what I would pay attention to:

Legal Considerations:

Passive vs. Active Income: Generally, passive income from real estate investments, like rental income, is allowed even if you are on an H2B visa. Active management, however, can be seen as employment, which you might not be permitted to do.

Forming an LLC: Forming an LLC itself is not typically considered employment. However, managing the LLC actively could be problematic. Passive ownership might be acceptable.

Hiring a Property Manager: To stay compliant, consider hiring a property management company to handle the day-to-day operations of the short-term rentals. This way, you can remain a passive investor.

While starting an LLC and running short-term rentals can be feasible, it's crucial to structure your involvement as a passive investor to stay within legal bounds. Consulting with an immigration attorney is essential to navigate this process correctly.

There are plenty of alternative ways to start investing that take very little work. If you are interested or just curious, shoot me a message and I'd love to chat over the phone. I hope this finds you well!

Hello, Matt Hubert, It's a significant decision, and weighing the emotional attachment against financial goals is never easy. Here’s a detailed analysis to help guide your decision:

Initial Costs:

Purchase Price: $260,000
Down Payment and Closing Costs: $60,000
Monthly Cost: $400 for several years

Market Value:

Current Value: $540,000 to $600,000
Immediate Equity: $280,000 to $340,000 (based on the market value minus the purchase price)

The substantial equity in the farm can be a powerful tool for your investment journey:

Home Equity Line of Credit (HELOC): You could use a HELOC against the farm's equity to fund other investments. This allows you to leverage the farm's value without selling it.

Cash-Out Refinance: If you refinance the property, you can pull out cash based on the equity, which can be used for down payments on BRRRR properties.

Collateral for Loans: The farm can be used as collateral for obtaining loans for other investment properties.

BRRRR Investments:

Immediate Cash Flow: BRRRR properties will likely generate some positive cash flow right away.

Faster Turnover: BRRRR allows you to recycle your capital more quickly, aiding rapid portfolio growth.

Initial Investment: $60,000 can potentially fund multiple BRRRR properties, providing diversity and multiple income streams.

Farm Investment:

Emotional Value: Maintaining the farm within the family has intrinsic value that cannot be quantified.

Long-Term Appreciation: The farm's value may appreciate significantly over time, providing a substantial future asset.

Monthly Cost: The $400 monthly cost needs to be factored into your budget, as it’s a non-cash-flowing asset in the short term.

Decision Points:

Emotional vs. Financial Goals: If keeping the farm in the family holds significant emotional value, this can justify the purchase despite the initial lack of cash flow.

Investment Strategy:

If immediate cash flow and rapid portfolio growth are your primary goals, BRRRR properties may be the better option.

If you can leverage the farm’s equity effectively, it could still serve your investment goals while preserving the family legacy.

Ultimately, the decision hinges on balancing emotional value and financial strategy. I’m here to help you explore financing options and further analyze the potential impacts on your investment journey.

What are your thoughts on leveraging the farm's equity for future investments? Please message me a good number to contact you with if you're interested in discussing further. I am a licensed loan officer and would happily help you navigate this situation to the best of my abilities. I hope this finds you well!

Hello, Katherine Van brocklin, welcome to the group! It's great to have you here. Your background as a licensed property manager in the greater Asheville, NC area is impressive, and your proactive approach to finding property managers looking to retire and sell their book of business is commendable. 

Investing in residential properties is a fantastic way to leverage your property management expertise. Here are some steps to get started:

Education and Forums: Join forums such as BiggerPockets, Real Estate Investing Subreddits, and local real estate investment groups. These platforms offer valuable insights and a supportive community.

Local Real Estate Meetups: Attend meetups and local REI (Real Estate Investors) clubs. Networking with local investors can provide practical advice and potential partnerships.

Research and Planning: Start by researching the Asheville market thoroughly. Understand the neighborhoods, property values, and rental demand.

Financing Options: Explore various financing options. As a mortgage officer, I can assist you in understanding loan products that suit your investment goals, such as conventional loans, FHA loans, or portfolio loans.

Property Management for Self-Owned Properties: Leverage your management skills to maintain high occupancy rates and maximize ROI on your investments.

I am a loan officer licensed in NC, feel free to reach out if you have any questions or need assistance with financing options. I'm here to help you succeed in your property management and investment endeavors. 

Hello, Guillermo Kennedy, have you considered a loan officer position? I understand the desire to streamline operations and avoid unnecessary paperwork and fees. As a loan officer, I'm always keen to support efficient and effective solutions. I would love to discuss further over the phone if you have a time as I am interested. Hope to hear from you!

All good man! Here to help. 

Hey James,

I completely understand the concern, I would want to work with someone who understands the guidelines well, as they are extensive. Rest assured, we have done many of these loans in the past, and I am completely confident in my ability to help your future buyers. Lets schedule a call for sometime this week. Feel free to message me directly or get my email/phone number from my profile.