All Forum Posts by: Ty Coutts

Hey Ethan,

Welcome to the world of real estate investing! It is truly the best way to build generational wealth so props to you for taking the first steps. Here are some steps to help you get started:

Education and Learning:

Read Books: Start with foundational books like "Rich Dad Poor Dad" by Robert Kiyosaki and "The Millionaire Real Estate Investor" by Gary Keller. 

Online Courses and Webinars: Platforms like Udemy, Coursera, and BiggerPockets offer courses specifically tailored to new real estate investors. Look for beginner-friendly courses to build your knowledge base.

Networking and Mentorship:

Join Real Estate Forums: Engage with online communities such as BiggerPockets, where you can ask questions, share experiences, and learn from seasoned investors.

Attend Local Meetups: Look for real estate investment clubs or meetups in your area. Networking with local investors can provide valuable insights and potential mentorship opportunities. You can sign up for these on a great website called Meetup.

Financial Preparation:

Evaluate Your Finances: Understand your current financial situation, including savings, credit score, and any potential sources of funding.

Create a Budget: Establish a budget for your first investment. This should include down payment, closing costs, potential rehab costs, and a reserve for unexpected expenses.

Market Research:

Choose a Market: Decide on a market where you want to invest. Consider factors like job growth, population growth, and rental demand. Start with your local area if you are more comfortable.

Analyze Properties: Use online tools like Zillow, Realtor.com, and Redfin to analyze potential properties. Look for properties that meet your investment criteria.

First Steps in Investing:

Start Small: Consider starting with a smaller investment, such as a single-family rental property or a duplex. This will help you gain experience without taking on too much risk.

Get Pre-Approved: If you plan to finance your first investment, get pre-approved for a mortgage. This will give you a clear idea of your budget and make you a more attractive buyer.

Continuous Learning:

Stay Informed: Real estate is an ever-changing field. Stay updated on market trends, new investment strategies, and changes in real estate laws.

Seek Feedback: Learn from your experiences and seek feedback from other investors. Continuous improvement is key to long-term success.

Please feel free to DM me if you want to discuss further and potentially get your investing started! Hope this helps. 

What's up Jay,

Given your situation, here are a few strategies you could consider to secure the rehab budget while respecting the seller's desire to maintain a first-position lien:

Home Equity Loan or HELOC:

If you own your primary residence or another property, consider tapping into its equity through a Home Equity Loan or Home Equity Line of Credit (HELOC). This would allow you to secure funds without placing a lien on the new property.

Personal Loan:

Investigate personal loans from banks or online lenders. These typically don't require collateral but come with higher interest rates. Ensure the monthly payments are manageable within your budget.

Private Lenders or Hard Money Loans:

Approach private lenders or hard money lenders who may be more flexible with lien positions. While interest rates might be higher, they can offer quicker access to capital.

Seller Financing Adjustments:

Negotiate with the seller to see if they are willing to adjust terms slightly. For example, propose a smaller initial down payment and larger monthly payments, which could free up some capital for the rehab budget.

Partner-Investor:

While not your preference, finding a partner-investor could be a viable option. Given your expertise as a contractor, you might find an investor willing to fund the rehab in exchange for a profit share or interest on the loan.

Cash-Out Refinance:

If you own other investment properties, consider a cash-out refinance to pull equity from those properties to fund the rehab.

I work for Aslan Home Lending and we have a HUGE variety of loan products, including the ones mentioned above. Please feel free to DM me if you would like to discuss your options. Even if I am unable to help, I could refer you to people who can. Hope this helps!

Hey Ane,

Welcome to real estate investing! It truly is the best way to achieve generational wealth. Here are some steps and considerations for ensuring your LLCs are compliant from a legal perspective:

For Your SDIRA LLCs in Florida:
LLC Registration: You have filed the foreign LLCs with the State of Florida, which is essential.
FINCEN Registration: Registering with FINCEN (Financial Crimes Enforcement Network) was a necessary step for compliance with the Corporate Transparency Act.
Ongoing Compliance:
Annual Reports: Ensure you file annual reports for your LLCs with the Florida Department of State.
State Taxes: Check if there are any state-specific taxes or fees you need to pay for the LLCs.
For Your Non-Retirement LLC in Nevada Buying Property in Michigan:
LLC Registration:
Foreign LLC Filing: Once the purchase is finalized, file your LLC as a foreign entity in Michigan.
FINCEN Registration:
Corporate Transparency Act: As of 2021, the Corporate Transparency Act requires LLCs and other entities to register with FINCEN. If this LLC was formed after January 1, 2021, it needs to be registered with FINCEN.
Ongoing Compliance:
Annual Reports: File annual reports with both Nevada and Michigan to keep your LLC in good standing.
State Taxes: Check if you need to file state taxes or pay fees in both Nevada and Michigan.
General Compliance Tips:
Local Business Licenses: Depending on the city or county, you may need a local business license for operating your LLC.
Registered Agent: Ensure you have a registered agent in each state where your LLC operates. This is typically a requirement for maintaining good standing.
Record Keeping: Maintain meticulous records for each LLC, including operating agreements, minutes of meetings, and financial records.

You should probably consult with a CPA or attorney just to make sure you meet all compliance guidelines. We have a compliance division here at Aslan and I can answer any further questions you may have. Please feel free to DM me if you need any further assistance. 

Hello, Ben Mardis, here are the specifics for Washington State:

Buyer’s Responsibility: Technically, the buyer is responsible for paying their broker's commission. However, it's common practice for the seller to cover this cost. This means that the buyer's broker’s commission is usually taken care of as part of the overall transaction, similar to the standard practice mentioned above.

Broker’s Agreement: The buyer's agent will typically negotiate this arrangement upfront, ensuring that the seller covers the commission from the sale proceeds. It’s part of the agent's duties to make this clear in the purchase agreement or the buyer's brokerage agreement.

Clarification: The broker you met with was likely emphasizing that, according to the letter of the law or the standard contract language, the buyer is technically responsible for their agent's commission. However, in practice, the broker always negotiates for the seller to pay this commission.

Negotiation Tactics: Good brokers negotiate to ensure that the buyer is not out of pocket for their agent’s commission, aligning with common practices and making the process easier for the buyer.

How to navigate this:

Ask for Clarification: If you’re unsure or need reassurance, ask your broker to explain how the commission will be handled in your specific transaction.

Review Agreements: Carefully review the buyer’s brokerage agreement and the purchase agreement to ensure that the commission details are clear and that the seller is covering the buyer’s agent commission as negotiated.

Hello, Hazem Abdallah, when choosing a company for cold calling, especially in terms of calculating KPIs and ensuring lead quality, it’s important to consider several factors, including their reputation, services, technology, and customer reviews. Here are three that I like:

Callbox
Overview: Callbox specializes in B2B lead generation and appointment setting services.
Strengths: Offers robust KPI tracking, multi-channel marketing, and high-quality lead generation.
Technology: Uses proprietary CRM and lead management tools to track and optimize KPIs.

SalesRoads
Overview: A B2B appointment setting and lead generation company that focuses on quality.
Strengths: Known for high-quality leads, detailed reporting, and KPI tracking.
Technology: Provides detailed metrics and performance analytics to clients.

CIENCE Technologies
Overview: Specializes in lead generation, appointment setting, and data enrichment.
Strengths: Strong emphasis on data-driven approaches and KPI measurement.
Technology: Uses advanced analytics to track lead quality and performance.

Here is some information to consider when you make your decision:

Reputation and Reviews: Look for companies with positive client testimonials and case studies demonstrating success in your industry.

KPI Tracking: Ensure the company has robust systems in place for tracking key performance indicators (KPIs) such as call volume, conversion rates, appointment setting rates, and lead quality.

Lead Quality: Evaluate how the company sources and qualifies leads. High lead quality is crucial for effective sales follow-up.

Technology and Tools: Companies that use advanced CRM systems and analytics tools tend to provide better insights and more efficient lead management.

Customization: Look for companies that tailor their services to your specific needs and industry.

Transparency: The company should provide clear and regular reporting on campaign performance and KPIs.

Hey Pinny,

When considering purchasing a turnkey property here are a few key points to keep in mind:

Experience and Reviews: Research reviews and testimonials from other investors who have worked with RentToRetirement. Look for feedback on their service quality, property management, and overall investment performance. Join real estate investment forums or groups where you can ask for firsthand experiences and advice. However, I have seen some weird listings on this site and it also does not have the best reviews. As an investor in real estate myself, I much prefer working with an individual rather than a site like this. However, that is just my preference. 

Market Selection Criteria: To choose the right market, consider factors such as:

Economic Growth: Look for markets with strong job growth, a diverse economy, and increasing population.

Rental Demand: Identify areas with high demand for rentals, which can be indicated by low vacancy rates and high rent-to-price ratios.

Affordability: Ensure the market offers properties within your budget that also meet your cash flow and appreciation goals.

Property Management Quality: Verify that there are reliable property management companies in the area to handle day-to-day operations, especially if you are investing from a distance.

Comparative Market Analysis: Perform a comparative market analysis to compare potential markets. Assess historical data on property appreciation, rental income trends, and market stability. Tools like Zillow, Realtor.com, and local real estate websites can provide valuable insights.

Choosing a market involves balancing risk and potential return. Thorough research and a clear understanding of your investment goals will help you make a more informed decision. I am an experienced loan officer and I have multiple investment properties myself. Glad you are looking into real estate investing as, in my opinion, it is one of the best ways to build generational wealth. Please feel free to DM me if you have any other questions!

Hey Sahara,

Given your situation, there are a few immediate actions you can take:

Continue Negotiating with PennyMac: Request an urgent escalation of your case. Explain your medical and family situation and ask if they can reconsider the payoff amount or provide any temporary assistance or delay in foreclosure to facilitate the sale. Persistence in reaching a supervisor or someone with decision-making authority can sometimes yield better results.

Contact HUD and Explore Options: Immediately follow up with the HUD counseling representative. Explain the urgency and seek advice on any potential waivers or deferrals for the partial claim. HUD might have programs or options for individuals facing pre-foreclosure due to COVID-19 related hardships.

Communicate with Your Buyer: Discuss the situation with your buyer transparently. See if they might be willing to increase their offer slightly or cover some closing costs. This might be a long shot, but open communication can sometimes lead to unexpected solutions.

While these steps may not guarantee a resolution, they could help you find a path that avoids foreclosure and allows you to relocate your family. I am a loan officer so I could be able to help you navigate this. Please contact me if you need further assistance or if you just want to chat. Feel free to DM me at any time. 

Hello, Elijah Householder, I believe I can answer your question.

Using rental income from a room in the house to qualify for a mortgage can be challenging, especially if this is your first home purchase. Here are the key points:

Lender Policies: Most lenders require proof of stable rental income, typically shown through previous tax returns or a history of rental payments. Since you're purchasing your first home, you likely don't have this rental history.

Lease Agreement: While a signed lease agreement is a positive step, it might not be sufficient on its own for a lender to consider the rental income in your mortgage application. Lenders usually look for established rental income history rather than future projections.

Alternative Documentation: Some lenders may consider future rental income if you have a solid lease agreement and other supporting documentation, such as a detailed rental market analysis. However, this is less common and highly lender-dependent.

Using income from an unpermitted ADU is typically not allowed by lenders for qualifying purposes. However, here are some considerations:

Permitting: Unpermitted structures are often a red flag for lenders because they may not meet local building codes or safety standards. The income from such units is generally not considered reliable.

Occupying the ADU: While you could theoretically occupy the unpermitted ADU and rent out the main house, lenders still might not recognize this arrangement for qualifying purposes due to the unpermitted status of the ADU.

Permitting the ADU: If possible, consider working to get the ADU permitted. This process can be time-consuming and potentially costly but may significantly enhance your ability to use the rental income for mortgage qualification in the future.

Hi, Nicholas Nocella, I would love to chat and relay ideas off of one another as you sound knowledgeable in both real estate and sales. I think what you're doing with your plan for your future is very smart and hope to contribute to your goals. Please contact me below, I hope to hear from you soon.

https://app.wavecnct.com/profile/ty.coutts.2mod

Hello, John Mason, yes, a second home can be operated by a management firm that has control over occupancy. Many property owners choose to hire management firms to handle the logistics of renting out their properties, especially if they do not live nearby or prefer not to manage the rental process themselves.

Here's how it can work:

Hire a Property Management Firm: You can contract a reputable property management firm that specializes in managing rental properties. They will handle all aspects of renting out your second home.

Long-Term Rentals (LTR): The management firm can find long-term tenants for your property, screen potential renters, handle lease agreements, and manage any issues that arise during the tenancy.

Seasonal or Short-Term Rentals: If you prefer to rent out your property on a seasonal or short-term basis, the management firm can handle marketing, bookings, check-ins, check-outs, and cleaning between guests. They can also manage the listing on various vacation rental platforms.

Control Over Occupancy: The management firm will operate within the guidelines you set regarding the rental periods and occupancy. You can specify blackout dates when the property is not available for rent if you wish to use it personally during certain times of the year.

Legal and Regulatory Compliance: The management firm will ensure that the property complies with local laws and regulations concerning rental properties, including obtaining any necessary permits and adhering to zoning laws.

Maintenance and Repairs: Property management firms often take care of routine maintenance and emergency repairs, ensuring the property is well-maintained and ready for tenants or guests.

This arrangement allows you to enjoy your second home for part of the year and generate rental income when you're not using it, with minimal effort on your part.