All Forum Posts by: Chris Seveney
Chris Seveney has started 370 posts and replied 18587 times.
Post: Buyer transferring llcs after sale on land contract
- Investor
- Virginia
- Posts 19,439
- Votes 17,116
Quote from @Alex Martin:
I sold a portfolio of rentals a couple months ago on land contract to an individual who formed an llc to hold the portfolio. He is now looking to partner with someone on these and is asking to transfer the properties. The new llc he wishes to move them into already has a large number of properties in it and also has the new guy named as partial owner.
I'm not looking to be difficult for no reason but I'm hesistant to give the thumbs up to transfer stuff. I technically agreed to sell to guy #1, not the new guy. I'm wondering if doing so would open me up to any additional risk as well? Since right now my properties are held by a single member and are the only properties in the llc. If they transfer now I've got multiple people in the llc and a large number of other properties as well. Thoughts?
I would say no. If he wants a partner for these assets then he can amend his LLC membership interest.
Post: What are lp in syndications looking for?
- Investor
- Virginia
- Posts 19,439
- Votes 17,116
Quote from @Chris Howell:
Thanks that is very helpful information and insightful on what makes a deal comfortable for someone. Would you be hesitant if the sponsor was jumping from sfr to multifamily but has a track record for 20+ years of running a value add sfr portfolio and wants to scale same model in multifamily. If they can show their personal portfolio and how they and team are hands on at rehab and management over that time with high margins and conservative debt to value. What kind of return would you want if their was a guaranteed monthly payment made from GOI so you arent waiting years for distributions but can have a monthly payments with lump sum at the end with refinance or sale?
thanks
SFR vs. MFR are two very big different animals and I would have concerns.
Post: Hiring Cold Callers
- Investor
- Virginia
- Posts 19,439
- Votes 17,116
Quote from @Sara Szo:
To anyone who has hired and assembled a team of cold callers for larger marketing campaigns:
What sites have you used successfully or not successfully to find/hire your callers?
What schedule have you used and found successful for contact? I.e 1 call day 1, 1 call day 3, 2 calls after two weeks, 1 call at 3 months (or any variation of this)
What CRM have you used to manage large lists of leads?
we used batchleads/batchdialer and had some VA's, never had any luck hiring cold callers and thus not something we even consider anymore.
Post: Help! Buying Non-Warrantable Condo
- Investor
- Virginia
- Posts 19,439
- Votes 17,116
Quote from @Mike L.:
Hi! I am buying a non warrantable condo in TX. This will be a rental property. The complex is non warrantable because more than 50% of the complex is investor owned. Would love to connect with someone.
As mentioned by Eric, you could do this as a DSCR loan just recognize it will have a higher rate.
you also did not mention loan amount or down payments as that will also come into play with a NW condo.
Post: Plesae help to understand rate of return
- Investor
- Virginia
- Posts 19,439
- Votes 17,116
Quote from @Bea Kari:
Hello, First time posting., My partner and I were looking to buy a second home to rent. cost 400 000. downpayment 80 000.
My partner says investing in SP 500 is much more worth than buying a rental. I feel otherwise.
How am I going to convince them otherwise? Can someone help me to figure out the math behind it?
Thank you!
They are almost identical from a historical standpoint so in reality you will not convince them on that merit only. You can convince them on diversifying the portfolio but trying to compare real estate to S&P you will see returns are about the same and the S&P requires a lot less work than real estate. where people make money in real estate is by finding a good deal and having it cash in, just like finding an underappreciated stock.
Post: Private Money Raising for Fix and Flip in San Diego
- Investor
- Virginia
- Posts 19,439
- Votes 17,116
Quote from @Jorge I. Pimentel:
Hello,
I am a new investor in San Diego County. I am looking to start my investing journey with Fix and Flips in San Diego. My buy box is SFR 3 bed, 2 bath, less than 2,000 sqft. and below 800k.
My current bottleneck is the down payment needed for the flips. I have already talked to hard money lenders and got the pre approval. I am also in constant contact with wholesalers. I also already have 2 GCs lined up. Where I'm currently struggling is coming up with the necessary funds to cover the 10-15% down payment and remaining funds for the interest payments on the hard money loan, etc.. I have a decent amount of money saved up, however; it is still not enough to cover the amount needed for this market.
Any suggestions on how to find private money investors locally? Thank you in advance for any feedback and help!
bring on an equity partner
Post: What are lp in syndications looking for?
- Investor
- Virginia
- Posts 19,439
- Votes 17,116
@Chris Howell I look for experienced sponsors who know how to evaluate risk reward. I would take 9% all day long with an experienced sponsors over 15% projected with someone inexperienced
Post: Solution for not being able to pay mortgage and very low selling price.
- Investor
- Virginia
- Posts 19,439
- Votes 17,116
Quote from @Mahmudul Shoikot:
I have house thats on rent in Fortworth and living in other state. I could never get good tenant or sometimes no tenant for months even after having the property management company. Most of the times, I am having to pay my own rent where I am leaving and even cover the mortgage of the house. My job and situation is changed now and can no longer pay the mortgage. The price of my house has significatnly reduced also.I bought house in 320k and Redfin/Zillow shows 250-270k whereas I still owe 285k. So, I cannot even get good price while selling. I am not even looking for profit anymore just that I wont owe any money and wont affect my credit. Please give me the solution in for my situation or place where I could contact.
Thank you in advance and really appreciate your help.
see if you can hand the keys back to the bank
Post: Anyone Using DSCR Loans to Transition from Flips to Rentals?
- Investor
- Virginia
- Posts 19,439
- Votes 17,116
Quote from @Jay Hurst:
Quote from @Jaycee Greene:
Quote from @Kelly Schroeder:
I've been talking with investors who started with flips but now want to hold rentals without hitting the wall of conventional financing. DSCR loans keep coming up as a tool for that.
For those who’ve made the shift:
- Did DSCR help you scale faster into buy-and-hold?
- Were the cash flow metrics tough to meet compared to traditional approvals?
- Any lessons from moving from short-term profit (flips) to long-term holds with DSCR?
I’d love to hear how you’re balancing flips and rentals while keeping momentum.
@Kelly Schroeder What is the "wall of conventional financing"?
That was going to be my question as well!
i assume they mean the 10 loan limit.
We see many people who are using DSCR as an avenue for growing. you typically need 25-30% down payment and dscr positive ratios, but the rates are not much higher than traditional loans right now and are a great avenue. the biggest delta is typically you are gonna have to have a 5 year PPP, you can get them with less but the rates will go up.
Post: LLC vs. Personal Name for First Rental – What’s Worked for You?
- Investor
- Virginia
- Posts 19,439
- Votes 17,116
I bought my first rental in my personal name because I got a great rate from my credit union. I hired a PM and also umbrella insurance policy