All Forum Posts by: Yoann Mamy Randriamihaja

thanks @Ryland Taniguchi! Would it then be better to transfer the land contract to an LLC?

Thanks @Linda Weygant! Definitely worth knowing and looking into.

Thanks @Wayne Brooks! I'll be talking to my CPA and attorney

Hi All,

I was wondering if you could help me analyzing this deal.

It is a multi-family (4 units) that is owned by an S-corp through a land contract.

We would be buying the S-corp for ~$20k and would continue the payment of the existing 30 years mortgage.

Note that the $20k are significantly less than what it would cost to go through traditional financing with 20% down payment and closing costs (definitely a plus).

I ran the numbers using conservatives rents, 12% vacancies, 15% maintenance/repair and 10% for property management.

If we do the PM ourselves, I find $100 cash flow per door and $50 if we outsource the PM.

One concern is the property price which is on the high side for the area (around $10k to $15k, accounting for the cost of repairs needed).

Which brings me to the questions I have for you:

1) Can it make sense to "slightly" over pay for a property if it cash flows and if the deal structures allows you getting in much more easily?

2) Do you have any advice on what due diligence are needed when buying an S-corp?

I greatly appreciate the help of the BP community! This would be our second deal with a completely new deal structure so I'd rather do my home works.

Thanks,

Yoann

@Eric Mauricio

It would be quicker to say what we didn't get from BP :)

First heard about BP when we were freshly out of a 3 days guru seminar and wondering if it was worth the $30k (by increasing credit card limit and all the good stuff). Seeing the comments on BP and the amount of information out there saved us the money that was then available to us for our down payment and "education".

The BP podcast's book references taught me how to analyze a deal, and I'm still using an excel sheet that I downloaded from BP for that purpose.

Podcast 15 with Glenn and Amber Schworm made us aware of an existing real estate investor's club in our area that we joined. Networking there helped us find our real estate agent, mortgage broker, real estate attorney and HVAC contractor that we are now working with.

By contacting several BP members from our area, we got references for contractors. We've been working with one successfully and he was able to perform the sub floor repair needed to pass the appraisal before closing.

We gained a lot of information from BP and Brandon's book on "investing with low and no money down" (don't quote me on the title :) ) regarding FHA loans.

One of Brandon's quick tip about audio books and the availability of Rich Dad Poor Dad on youtube made me discover audio books (was not convinced it was for me before that), but it turns out I'm loving it! I bought the complete audio book and plan on buying more to listen to during commute.

All of this combined inspired us to persevere, and hearing about the success stories of other beginners gave us the confidence needed to take actions.

To make a long story short, BP helped us a lot in acquiring this first deal :)

thanks!

@Edwin Gachinga we used an FHA loan to benefit from the low down payment on a multi-family.

It took us more than 6 months, visited dozens of properties, made offers on 6 of them to finally find the one.

During the journey, we joined our local real estate investor's group and found valuable members of our "team".

Definitely worth the effort! The next one will be much easier now :)

Hi All,

Just wanted to share the good news with the community that helped us greatly.

My wife and I purchased our very first property!

It is a 3 story brick building with 3 residential units and one commercial that should cash flow a bit more than $100 per door when fully rented.

We already have one unit rented and are doing some work on the 3rd one (while living on the 2nd) which gives us the opportunity to vet our contractors.

Already looking toward the next deal, targeting a SF rehab purchased with private money so that we can have it set up in place and start building a track record.

Thanks a lot to the BP community!

We'll try to be more active on the site (and put up a profile picture as well)

Yoann and Lucie

Thanks a lot for all of your replies!

I'll try to isolate all outlets that are connected together and see what I can find.

If it gets messy, I'll definitely call a pro.

@JD Martin

Thanks for your answer!

I'll follow your advice.

Hello!

I have a small electric question.

I used a GCFI receptacle tester on one receptacle that displays "hot/neut. reverse". I also checked it with a non-contact voltage tester and the larger blade hole (which should be neutral) appears to be hot.

So I opened the receptacle (after turning power off) but the white wire goes where the white label is on the receptacle and when I compare it to another working receptacle, it's wired the same.

So my guess is that neutral (white) and hot (black) wires are reversed at the power supply (electrical panel?). If so, how can I verify this on the electrical panel?

Is having neutral and hot reversed an issue?

Just found out another receptacle with same signal ("hot/neut. reverse") which I had been using for a while now without any visible issue.

Should I reverse the wiring at the receptacle (I guess preferably at the source)?

Thanks for your help!

Yoann