All Forum Posts by: Ray Tran

Hey Kenneth can you also send Nick's powerpoint to [REMOVED] Also I would like to take your offer from your "Currently Seeking" info under your Profile. Thanks

Hi Ewa, I would like your opinion because it sounds like your an Real estate agent or know alot about this area.

(1) Do you consider it wrong to use more than one buying agent (I wouldn't cut the used RE agent out, but I turned down so many RE agent that I meet because I already have one).

(2) As a RE buying agent, what do you appreciate in buyers? (any traits that doesn't annoy you, but is really effective in buying a house).

(3) After I check out an house and determine its NOI and Maximum Selling Price, this is when I ask for a Market analysis. Do you think I should ask my buying agent for more Market Analysis (for ex. I only ask a very small amount of CMR, should I be asking for CMR at houses I haven't even stepped in - that would make searching for properties so much more efficient)

Thanks Jeffrey and Brian. Going to start setting up an LLC, this week. Thanks for the feedback.
Will there be any fees for transferring my properties from my name into the LLC balance sheet?

@ Jeffrey - Very interesting, I thought an LLC with the assets that I currently have, I would have more financing power. Mainly because it was a business as opposed to non-business. Thanks for letting me know that LLC doesn't completely get me off the hook - could have been one heck of a shocker in the wrong instance.

@ Brian - great solid advice. I was hesitate on spending the extra funds and was planning on setting up my LLC myself. With the knowledge that I have with business entities, I think its worth the cost. Gotcha with the insurance isn't homeowner policy.

Hello all,

I would like to start investing in houses professionally on the side. I currently own one rental/investment property in my name. I am currently in the process of getting another foreclosure in my name.

I want to start a business of rental out houses, but which are the right steps for a NEW rental investor. Please see my two questions below regarding the subject:

1)I would appreciate if investors could tell me if they would create a LLC if they were in my position. (I've read several of articles and books, but still not entirely sure which pro/con apply in this rental business).
Feel free to tear down my Pro's and Con's:
*Pro 1- As a LLC, it would be better for maximum financing power
*Pro 2- Tax savings (less tax consequences ex. transfering properties, Less tax on profits and loss)
*Pro 3 - Asset protection, more options the better
*Pro 4 - Liability protection, I can only lose what I put in the LLC.
*Con 1 - Makes everything more complicated
*Con 2 - Makes money shuffling harder, or in other words I must be more financially accountable.


2) Should I start up a LLC and transfer my properties into LLC assets? Would I pay any taxes/fee for such transfers?


Any other advice, tips, advantages or disadvantages for creating a LLC and transferring all of my assets into it. Anything would be greatly appreciated

Thanks,
Ray

Also big thanks to Greg Boots for his posting on Biggerpockets regarding "LLC or LP?"
:D

Yes, seller is currently processing my offer, so I think its currently under my contract. Thanks for investigating its comps.

Yeah my exit strategy is to fix it up to rent. Then lease it out. And within two years try to improve the condition of the house to increase its value.

I was analyzing my searching criteria procedures, Do more experience investors do more 'actually looking at houses'?

I realize that I do more research, then actually looking at houses. Am I doing things not efficiently, should I be looking at more houses to determine valuation?

Fyi, rates changed for the worse 3 times today by ½, 3/8, and 3/8.

Can you still get a 5% mortgage?

Hello all,

I was wondering how a savvy investor sorts through to find houses.

For example, I have my search criteria (the things that I'm looking for in an investment property). Then when my agent, sends me the MLS listings, I search for County appraisal. Then I search Zillow for neighborhood value. Then I use CMA to see if I want to offer.

I know that county appraisal and zillow are not true market indicators. So hopefully any experiences investor can share some insight on how I can search for properties more effectively.

Is there anything you do differently? Are there other ways you find great deals? Do you guys go though a buying RE agent?

Thanks for your time,
Ray

I am such a tool. I've been sitting here for about 1 hour trying to Private message without succeeding. So far, I have followed you Michael P. Which added you to my colleagues list. But when I try to Private message you your name doesn't pop up. Can anyone show me how to PM?

@Michael P -Would much rather PM you, but I don't mind putting the address online (hopefully it can give me more feedback). Address is 4036 Random Circle, Garland Tx 75043. Well even though this is my first investment property (since my enlightenment), I've own one rental property which has done so well its inspired me to be a RE investor, ran into it because a friend told me it was a good deal. Had it for about 10 years. That property now has much worst foundation problems than this property. So I agree, hairline crack COULD be negligible.

Regarding your 40k spread, do you mean in instant equity? House condition is actually good, so definitely gonna get inspection bc I think its undervalue and there must be problems. Hopefully investment potential outweighs known problems.

Also Michael, I wanted to know your opinion. Is it hard to find a good deal these days in the Dallas RE market? I've looked so much and only found one deal. Regarding my exit strategy, kinda lame but I just thought that if I need to exit I would sell it.

@ Jeffrey Koenig - thanks for the feedback. I got the idea from a book called "Differentiate or Die by Jack Trout (great book)". I just wanted to separate my offers from the 'normal' offer. I don't think I will even talk to the sellers. My agent submits my offer, and pretty much everything is done though my agent. If anyone is willing I would like to get more feedback regarding this "Upfront Down-payment and business card"?

I definitely need to learn more about ARV, to become a good investor.

@Kendra Williams - Yeah these people are so great. I'm learning so much from one deal and feel like my second deal is going to be a larger learning curve. These experience Investors are so warm and helpful, I really feel so grateful for them and their feedback that I don't know how to express it.

I would also like to leave you with this quote. its based on my own 'waiting to make a move' process. Took me awhile to think that I can do it and actually take action. Now I don't really care, I'm going for it. Sink or swim style. "Whether you think you can or whether you think you can't, you're right." by Henry Ford

@ Mr. Holdman - Great post. Got alot of practical information out of it.

--Regarding the hairline crack, I haven't had an inspector out to check out the foundation. If the offer comes back, I am planning to rent an inspector (mainly because it looks a little low for that neighborhood, so I'm planning some major problems with that house).

--I'm so happy. I did the math before you posted, and it matches close enough. I was never good at math :) Its also great that you calculated the refianance with updated payment of $504. Truly investor math, thanks.

- Regarding the cash out loan, I'm glad you mention that. I have a credit score of 760 and a good secure job at Bank of America. I thought home mortgages was harder to get, but investing funds was a little easier to get with a good business plan. Thats great info to keep in mind when I consider this strategy/formula. Also my family knows of a private lender in the DFW area, will try to establish a strong relationship.