All Forum Posts by: Therese V.

We invest in a different state than we live, so I'd like to start learning the area that we currently live as well. This means I'd like to go to local REI meetups and get on track to make our first local purchase in 2017.

Rental #2 needs a new roof on the house and garage, so looking to do that in July. I'm hoping to find a small loan for that so we don't use any of our own capital but can just add it to what comes out of the rents for maintenance.

Our final goal is to create an LLC in the other state for our properties. I'm thinking this will be the first one to actually accomplish (hopefully in the next few months).

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2015 goal was to acquire another rental, accomplished that. We now have 3 SFH with renters in them. It's a small start, but over time it should pay off nicely.

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Originally posted by @David Dachtera:

@Jeff L.,

That sounds like a wise move: get your properties into a business entity structure and out of your personal name. The greater your net worth the more likely someone will try to take it from you through a frivolous lawsuit.

Once your business entity structure is established by that, use it to acquire properties in a business rather than buying them yourself.

To avoid being the target of a lawsuit the rule is: control everything, own nothing.

@Therese V.,

The "work-around" is to move your properties into a business entity structure and out of your personal name(s). Even if you hit some limit and the business can't buy anymore, start a new business and "fill that up", ... lather, rinse, repeat.

Financing is not primarily controlled by ownership. It goes by the debtor, not the owner (they're not always the same!).

That said, bounce the rest of your question off an attorney. If both your names are on the paperwork, you're likely to be considered a single entity and, therefore, subject to the lower limit.

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."
- DJ Benedict

Thank you for the information.

We are actually looking at an LLC right now. We have 3 properties and our attorney did suggest setting up the LLC, but we need to get an attorney in a different state for that (the properties are located in a different state than we reside).

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Originally posted by @Wayne Brooks:

@Lisa Kohl No, that is wrong. The reg is "10 Properties that have a loan/mortgage". You could have 10 properties with 2 mortgages on each property, or one blanket loan for the 10 properties, both count as exactly the same....10 mortgaged properties. Not sure about the properties being in an LLC, with No personal guarantee.

How do we "get around" that?

If 10 mortgages our in DH name but deeds are in both of our names, does that count against the limit for me for 10 mortgages? Can we effectively have 20 between the 2 of us?

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Originally posted by @Roy N.:

@Therese V.

Here are two simple examples of IRR and MIRR calculations.

I would recommend you pickup a copy of @Frank Gallinelli's book "What Every Real Estate Investor Needs to Know About Cash Flow"

Any chance your source had confused Financial Management Rate of Return (FMRR) and Modified Internal Rate of Return (MIRR)?

Thank you for the sources!

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Originally posted by @Roy N.:

@Therese V.

That's a new version of MIRR (Modified Internal Rate of Return) to me.

IRR (Internal Rate of Return) assumes that all cashflows are reinvested in the business at the rate-of-return.

MIRR assumes all positive cash flows are reinvested at the business' cost of capital and all initial outlays are financed at the business' financing costs. Essentially it is IRR modified to account for the difference between re-investment rate and the rate of return.

Hmm, maybe the person mentioning it had an autocorrect issue?

Anyways, can you give me an example with numbers of what that means? Why would I want to know either of those?

For the rate of return, which version do we use? Does that account for the purchase price or just the amount spent OOP? (presuming a mortgage)

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Definitely no. Where did they get that extra money if they are in bankruptcy? Something fishy is going on and I wouldn't even want to try to guess what. Just say NO!

Wait around for a better applicant.

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I was reading a thread on here and someone brought up MIRR (Manager's Initial Rate of Return) in passing. What is this, what does it tell me, and how do I calculate it? Why do I want to know this?

Thank you for any responses!

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Originally posted by @James Gallagher:

Originally posted by @Therese V.:

Thank you for the link and that website!

It looks great, is there a way I can print out a paper app for people to fill out and latter upload the data myself to do the background checks?

My property is located in a different state and my uncle, the maintenance man, will be showing/getting apps. He doesn't know how to use a computer. Do most people have internet access to fill out the app online or have you run into a problem with that? My tenants are mostly going to be lower-income people.

Is it $15 total for credit and criminal or $15 for each of them for a total of $30?

Sure wish that post hadn't been removed... Would like the opportunity to evaluate whatever offer it was for myself. Can you PM me with this and let me know how it has worked for you?

Hello, I actually went with a different website that does a criminal background check, SS check, credit check, eviction check, and prior address check for a total for $40. I created my own app based on various threads in here and some apps I found online. Each potential tenant 18+ fills out an app and also gives a nonrefundable $40 for that cost. We've got 3 houses fully rented right now, very happy for everything we've learned here.

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Originally posted by @Account Closed:

Make an offer with the seller rebating you back the cost of the roof replacement.

Is that tthe same as a credit?

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All Forum Posts by: Therese V.

Therese V. has started 61 posts and replied 253 times.

Post: What are your goals for 2016?

Post: Did you meet your 2015 goals? What will 2016 hold?

Post: The 10 mortgage limit: is it 10 LOANS or 10 PROPERTIES?

Post: The 10 mortgage limit: is it 10 LOANS or 10 PROPERTIES?

Post: What is MIRR (Manager's Initial Rate of Return)?

Post: What is MIRR (Manager's Initial Rate of Return)?

Post: Would you rent to tenant in Chapter 13 if they pay for full year

Post: What is MIRR (Manager's Initial Rate of Return)?

Post: Getting rental application document together

Post: How to include roof price in mortgage?