All Forum Posts by: Anthony O.

Originally posted by @Phil Goodwin:

Who owns the property, it is in your individual names?  If so, only insurance will protect you from liability.  I own a triplex with agency financing with my brother in our individual names.  The leases are in our names and the rents is payable to us; we file taxes under a GP.  I get a K1 and he gets a K1.  We have good insurance coverage plus I bought a separate umbrella policy for $1,000,000 to protect my personal assets, premium is $300/year.

You can transfer properties from your name to the LLC but you will pay transfer tax because technically it is a sale, even if it is only for $1. And you will void your mortgage because in the note there is a "due on sale clause" and you will void your title insurance.

You can buy properties in an LLC, but if they are 1-4 units then they qualify for regular 30 year mortgages. If you buy in LLC's, then you have to get a commercial mortgage with higher rates and you can't get 30 year mortgages.

 Phil,

Do you have significant equity in your property? If you do or do not, did that play a roll in your decision to proceed the way you did?

Originally posted by @Greg Scott:

Anthony:

I would be really careful here.  Unless you are both a CPA and attorney, I would be hesitant to give any advice to your friend especially if he is investing in YOUR project.   You may want to encourage him to seek independent advisers. 

Good luck

 I appreciate your concern Greg. It’s not my project and OFCOURSE he will ultimately pursue that route. The reality is that this whole forum could be directed to a professional in a given field. My intent behind posting the question is to educate and develop a better understanding. I would always recommend your advice to anyone looking into this sort of thing, but I also always encourage learning and better understanding.

Looking to get advice on what the appropriate entity would be for a private money lending opportunity. I have a friend looking to invest 50-100k in a flip project. No equity. 10% ROI with a 14 month term.

His intent is to have seperation from personal finances/accounts etc. We discussed LLCs, S Corp, but I don’t know well enough to give him accurate advice.

@Jeremy Roberts

Exactly. My thought now is to possibly recoup the funds, I close on an additional deal this coming Friday that will have similar numbers, and attempt to find a proper BRRR multi family before years end.

@Jeremy Roberts and @Harjeet Bhatti thank you for that tip. My only concern with HELOCS is the potential for a big upswing in rates. Do you feal that HELOC rates will remain in the 5-6% range for awhile?

Originally posted by @Brent Coombs:

@Anthony O., were you always intending to buy-n-hold? ie. If you can get 100% financing, will its rent return cover both the mortgage and its other ongoing expenses? [If so, where's the problem?]

ie. If you always intended to flip it instead, why even consider a refi?

ie. What is it about this project that is different than what you always knew? Good luck...

 Thanx for reaching out Brent. It’s always been intended to be a buy and hold but to be honest I didn’t initially think it would appraise for as high as I do now. I would still cash flow with the new mortgage rate but if my math is correct I’d only be able to pull out about 9k..

Hey Guys and Gals,

Looking to make sense of a deal that I’ve closed on and just completed a rehab. 

Purchase price of 115k with 10% down @ 4.75% with a P&I of $654/mo

Loan balance of 103,500

Rehab cost of 10k

ARV of what I am guessing to be about 150k

Assuming an ARV of 150k with 80/20 financing at 5.5%

After closing costs etc it doesn’t seem to make sense. Any thoughts or input?

Looking for a CPA in the Ventura County area. Anyone have recommendations?

Originally posted by @Jeremy Chaudet:

Does anyone have any experience with senior shared housing? I have come across a company who focuses on one story ranches and customizes them to make them senior friendly and it sparked my interest. The rooms are rented to seniors who prefer not to live alone. With the influx of baby boomers retiring this seems like an interesting strategy. 

I would imagine that in certain areas you need a special type of license or zoning to rent rooms?

Marketing seems like it could be a challenge if seniors have trouble with technology and internet? 

Thanks!

 Jeremy,

I am actually currently looking into this as there is a property near me for sale. It is being sold as a business as it includes the physical property, as well as the license to operate. One deal with two separate transactions. Im not sure of the laws in PA, but in CA there are a number of licenses and requirements to operate. Additionally, you need a full time staff with apx 1:1 staff to pt ratio. Each county within the state is different. I am still researching and very green into this, but the returns are pretty incredible. Looking at 500-1000$ per bed per day.

@Sharon Tseung In Michigan. I’m serious. Find a good property manager and agent. They will funnel you listings and just keep offering. I’ve offered on about 2 properties a week for the last 3 weeks. I’ve analyzed probably over 200. Just go for it.