All Forum Posts by: Ben Allumbaugh

BP community,

I've been looking into opening an LLC for a while now and I understand the intent behind it. What I am still in the grey on is completing this action with buy/hold properties in different states.

Background is like most military REIs, I move-buy and rehab-rent my properties. I have seen a few comments on starting in one state (WY sounds the most popular) and potentially paying a fee for bringing the other properties out of state in. I’d like so feedback on similar situations and potential recommendations so I can execute this action in this quarter. I’m expanding my strategy and portfolio this year and it is something I need to seriously consider. 

Any feedback is appreciated, thanks. 

@Susan Ferris

Aside from the good advice above on BRRR, if you arent ready for the slightly higher due diligence - Take a look locally at your market for credit unions and smaller lenders. Conventional lending with some of these offers "balloon rates" at 30 year amor rates paid in 10 - at zero down in one of my markets. While this probably is just a great deal, these lenders are out there. Additionally, there is a lot of great material in the forums on pulling home equity for your primary residence for down payments (home equity loan OR a HELOC), you will be hard pressed to find one that will do that on equity in an investment property though.

Private money (family, friends, biz associates), HMLs, there is a lot of technique and strategy out there. Good luck. 

@Patrick Blankenship

It is definitely worth 20 minutes of google and researching but the highlights include a slightly higher VA funding fee for the second and on properties under your VA entitlement. This can be mitigated with a small down payment. The internet has quite a few good scales for counties/cities across the country showing max entitlement based on home type (SFH/multi 2/3/4). VA caps multi at 4-plex. Dont quote me but vast majority is around $531K max entitlement (SFH) - places like Los Angeles, Seattle, etc. have a much higher cap. Take a look man and good luck. Anyone feel free to shoot down the post if I'm off on the facts.

Reynard,

I’m absolutely in the same boat but I am a skeptic. I’ve found so many properties that didn’t meet the numbers that when I found this, I’m looking for the missing link. 

Joe,

Interesting experience there. As I said, I am not familiar with the market there. I can say a quick MLS scrub for the past couple days makes me initially see where you are coming from.

Good share. 

https://www.biggerpockets.com/...

Hello all,

Found what appears to be a good rehab/rental property or maybe a good BRRR. I am trying to understand the dynamics and really the timing sequence of finance/refinance for BRRR and it seems it's a good amount on the talent/comfort of the broker.

Could anyone open dialogue with me on this and discuss sequencing funding for this strategy. Also, I’d love to hear anyone’s positive experiences with brokers in this area/expertise. 

Thanks. 

@John Keaten

John, that’s exactly a follow up which you answered. Thank you for that. I’m just putting my toes into long distance investing aside from primary home to buy and hold in the military.

Id be interested to hear what strategies actually work for developing those assets/associates in a city such a philly to get a hold of a gem that meets the numbers crunch.

As I said, I have family there but they are not familiar with the practices we are referring to.

@Kevin M.

Kevin, great input and appreciated.

Interesting to hear a few particulars there on the fire system especially.

My search has turned up quite a few more multi properties that need work than I thought. Truthfully, I was enticed by that idea.

Would you be open to discussing in a message thread?

@Shawn Washington

Much thanks. I will reach out shortly.