All Forum Posts by: Andy Mirza

Excel is the short answer.

We've developed our modeling software over time and have have had professional help putting it together. At the end of the day, it's powered by Excel.

I echo @Chris Seveney's response.

A Diamond certification sounds pretty cool, though. I like the idea of a Platinum certification better. I wonder if it would cost more. The only money I would spend on that would be from my Monopoly game, haha!

@Dave Foster That's good news for me, thanks! As long as there's a path to doing it, we're ok if it's complicated. My partner and I are on very good terms and could come to an agreement.

I'm doing research because I'm trying to do the same thing. I'm planning to contact a knowledgeable attorney once I have a little bit of knowledge so that we can have an intelligent conversation.

My partner and I own 19 rental condos in an LLC. My partner is technically my partner's pension plan (49%) and I, personally, own the other 51%.

I've decided that I want to 1031 my part into commercial property, most likely self storage. My partner might come along with me or he might decide to keep his half and refinance them. (We have a loan coming due in the next 8 months or so, prompted this whole discussion.) We'll need to figure that out very soon.

Either way, I want to split my portion so that I have 100% control going forward.

Is the best way to do this, to separate the 19 condos into his and mine? That way, I can sell mine and he can do what he wants with his?

Would our original LLC have to Quitclaim properties to me personally or another entity I create for title holding purposes before selling the down leg properties?

I appreciate any help on this!

@Dave Rav Just be sure to educate yourself properly, which you are starting to do by asking here. There's a lot to learn with notes. Mobile home lending isn't necessarily too advanced for a newbie but it's not what we usually discuss on this particular forum. Find the forum that discusses mobile homes.

With mobile home notes, you have the chance to get into a note with low capital & borrowers who many times don't have any other options. Yes, risky but you mitigate that by educating yourself and limiting your risk and, if you do it right, you're rewarded with a good return. Instead of a 9 note pool, maybe do one...

Are you souring on OH? Anything new or different going on causing you to feel that way? We've only had two assets in OH and my observations are that the courts are slower than IL, which is saying something

Lots of great advice here. You don't necessarily have to create or form the LLC in the state that you reside in. Based on the advice of our attorney, we formed our management LLC in the state of DE and registered it as a foreign LLC in UT, where my business partner is located. DE has different laws pertaining to LLCs and how they are treated, which is a huge reason why so many people form their entities there.

UT was a lot cheaper to register a foreign LLC than my state of CA.

@Don Konipol Thanks for the answer.

I have 19 residential condo rentals that my partner and I put together before I got into notes. They've doubled in value since we refinanced them 5 years ago and the loan is coming due. I'm considering 1031 exchanging those 19 condos into 2-3 commercial properties.(Maybe 1 NNN lease turn key and 1 or 2 value add; not sure what type, though.)

I like the idea of having notes and real estate. That way I get the best of both worlds.

@Don Konipol Just curious, do you also invest in some commercial RE as well or just notes backed by commercial RE?

@Peter Halliday I just took the MLO courses so I really should know this by heart. From what I remember, balloon payments in residential notes are allowed as long as they don't conflict with state law. But this is a non-QM (Qualified Mortgage) loan, which means Fannie & Freddie won't buy it.

If Fannie & Freddie won't buy it, it would be harder to sell this loan & more investors will except some kind of discount.

I wouldn't let only the fact of a balloon payment stop me from buying a note.