All Forum Posts by: Lucero Sanchez

Hi everyone, my husband and I have been building spec homes for the last 2 years. We list them as soon as they are 100% completed. This time we have a potential buyer for a spec home we just started framing. We know this home will sell very fast since it's in a very good location. If we decide to move forward with these buyers, how do we go about this transaction? We are building this home with our own capital so these buyers will not be funding anything. We already have the majority of finishes picked out and have our budgets set. The potential buyers have asked us if they decide to buy are they able to pick the cabinets, granite, tile, finishes, and paint color. My question is what happens if they back out before closing and what if their taste is too custom. I'm sure many of you have done deals like this before. Can you share your advice and experiance and would you sell this way again?

Thank you

Hello BP,

I hope someone can help me with a question I have.

A friend of ours recently got his GC license and asked if we would like to open a business building spec homes together. We agreed and have now opened up an LLC under partners name and our name. He is putting in the land which is free and clear and under his name and where we plan to build the first spec home. He is also putting in 50% of the money to build and we are putting 50% of the money plus the legwork. So my question is do we need to transfer the land to the llc now?

My husband and I have always flipped and built on our own. So this is a first with a partner.

Thank you.

Originally posted by @Shiloh Lundahl:

@Lucero Sanchez We don’t have insurance on the LLCs. We carry insurance on each individual property.

 Got thank you!

Originally posted by @Shiloh Lundahl:

@Isaac S. I find that smaller banks work better with the investor. We have a series LLC with 8 different LLCs and each have their own checking and savings accounts associated with the property connected to that particular LLC.

 Hello, I know this thread is older but I have a question about what you wrote. 

Do you have limited liability insurance for just the one LLC (the one with its name on the bank account) or do you get insurance for each of the 8 LLC's that are connected? I'm assuming this is for rental properties.

@Evan Bell Congrats! I wish you the best of luck with your new tenants. We have been living in our FHA property for a year now and are ready to rent it out and move to our new build which we have been working so hard on these last few months. We have till the 15th of June to move out so the new tenant can move in, fingures crossed. @Nicholas W. I know what you mean.

We made a rental agreement with our future tenant yesterday with move in date of June 15th she gave us the security deposit, first months rent and pet deposit yesterday. So my question is, what happens if in the event our tenant decides to cancel the contract? What percentage should we give her back? I hope this doesn't happen but I was just wondering and I'm sure it's good to know. Does anyone have any suggestions or has had this happen before?

This is the first time we do a conventional loan cash out refinance. My husbands credit score is 710 the mortgage company is giving us an interest rate of 5.25% fixed 30 year. They told us that if the appraisal came in higher, then the interest might be dropped some. It came in $10,000 higher. I asked them if they will be dropping the rate and they said no. So is that interest rate to high for a non owner occupied investment property, is it to late to look for another mortgage company? Just to let you know but don't know if it makes a difference but my husband had a foreclosure 6 years ago and I just received a message that our loan is in the underwriting process.

@Anthony Jackson

Hi Anthony, I suggest you do your numbers first before you give up on your idea.

First how much equity do you have in your primary residence, is it enough to put down for the apartment?

2nd how much will it increase your primary residence mortgage payment?

3rd will your new rental property cover your new mortgage amount or how much will it cover?

Do your numbers first then decide for yourself. Just like @Chris Mason said "A cash out refinance on a primary residence that has appreciated a bit can be a bit of a Superlaser towards getting you started, but it's not for everyone." but it might be for you.  

We did a line of credit on our primary residence in 2007, we were able to take out $90k and we built a house and thanks to that LOC we are where we are now.

Good luck

@Natalie Vane