All Forum Posts by: Michael Ueltschey

Often times insurance is cheaper and financing easier in your personal name vs an LLC. That would make sense if they were holding it. If they were going to flip it, I am not sure.

Maybe they sold it to themselves at a loss, so the LLC would lose money and then reduce tax liability. This would likely be tax evasion though. Just some thoughts.

Rich,
The Builder I was dealing with was Tommy Harkins. I did not end up closing any deals. It was kinda of harder to put together than I thought. I think Tommy built only SFR..I'm not sure which LLC name he used.

Steve,
I met a guy the other day that is pretty influential at MDA. He is on the ground floor and spends a couple days a week on the coast. I well tell your story to him and see if he has any guidance to your situation. I will try also to find out what the demand is for rentals currently. You can send me a message over the forum and I can give you my contact info.

Michael

Thanks, that is great information. We have found people a little weary to invest their cash. I think this is great option to see if they would like to divert a portion of their IRA towards this investment. Thank you for your reply and insight.

Jon,

I am currently seeking investors for a Real Estate development. Is it possible for them to use funds from there IRA to invest. It is a long term play. Thanks,
Michael

Steve,

That is unfortunate to hear. Where is your Duplex? I haven't heard much recently as to what has been going on. The MDA was stating there was a wait list of 1,150 people back at the end of 2008.

What is your credit Score?
USDA loans allow 100% financing.
Typically 620 min fico but they will go to 580 with some compensating factors.

Mike,

you said, "We live in a beautiful upper class neighborhood with doctors, lawyers, and other professionals."

That's awesome! Guess what? I don't live in a neighborhood that nice.
I work hard and try and make prudent decisions with my investments.

I am curious where and what you have bought that has made you so successful. SFR? Commercial?
Were you independently wealthy before you began investing in real estate?

Tim,

3% on all your properties? Thats outstanding...Please share how you do this.

I can get 4% in certain areas of Jackson MS...however I am uncertain of these areas as there are not Owner occ sales...15k property will rent for 600...but it just scares me. Are these the deals you are finding? or are they higher end properties in good areas?

Josh,

In my market...the only way to make the numbers work as you stated above is to go in areas where they are not any owner occupant sales occuring. For example I could show you some great #'s on some properties in south jackson. But the numbers don't tell the complete story. These areas are going down by the minute.

Where are some examples of the 50% rule being applied in areas I would actually want to live in?

Most people consider jackson ms a wonderful place to invest. I would like to know about better deals out there. Please advise. Thanks

Mark,
If you'll reread my post, I stated that it is "likely" a better deal. I don't know the taxes and insurance on his proposed property to compare the true cash flow. I stand by my original statement.

There 1000 properties in Southwest Jackson MS that will cash flow like crazy...I can pick them up for 5-10k...I haven't bought any of them b/c they are in horrible areas. You need to buy a bunch or don't play in there at all. On paper these are better investments...but in REALITY they are not. Location, Location, Location.

The original poster is completing his 3rd deal...I wouldn't buy a duplex unless the area and cash flow was significantly higher vs a comparable SFR. You can market a duplex to 5% of the population. You can market a SFR to 100%.

I am sales manager with Bank of America Home Loans. It is hard to get financing on anything especially if it's more than 1 unit.

He might not like my property, but it would be a much wiser investment than the current choice he has. We have done a lot of NOO loans in Jackson for Cali investors...they are always buying in the wrong areas. It appears to be a deal b/c the price is so low...But they are a dime a dozen like that in S. Jackson.

Northeast Jackson is a different story. But even parts of NE jackson aren't good. I buy properties in areas I would live in. And my wife won't let me just live anywhere.

Location, exit strategy, appraised value, and cash flow should all be taken into consideration.

I am agreement that he should probably pass on this deal.