All Forum Posts by: Benjamin Giles

I have a condo I bought with cash. Due to low ARV and current high interest rates a refi doesn't make sense due to fees etc.

New condo association rules prohibit selling to an investor. Owner occupied only. 

Property cash flows $500 month.

Is there a benefit to transferring the property to my LLC? My LLC is currently about 1.5 years old and has no income or expenses. I am not well versed in tax liability/benefits etc., or benefits if my LLC having assets.

I would like to explore the possibility of DSCR loan on a property with my LLC, so would having that asset under my LLC have a benefit over me owning personally with a potential loan to my LLC?

My goal is to leave my 9-5 in the next 2 years. 
I have 1 long term property with cash flow $500/mo. 
1 STR (highly seasonal) with cash flow $300 mo

$150k in cash

my w-2 income I would need to replace in the next 2 years is $80k/yr.

Given these details what’s my next move? (What would you do & why)

@Sarah Brown and @Cameron Tope, my understanding from something they mentioned on the Rookie podcast was that this was not cool with lenders. They may call the note if the property is transferred to an LLC with whom they don't have a lending agreement with.

It seems that there is currently more financing available to LLC's than there are to individual investors at the moment. These were cash deals and I currently own both outright and have not refinanced yet.

Should I quitclaim my 2 properties to my LLC and use that entry level resume of 2 deals to access more financing or should I continue investing as an individual in order to obtain lower rates? At the moment it seems like paying the slightly higher rate the LLC would get on a loan may be worth it as It would open doors to more capital that seems to prefer working with LLC's over individuals.

Or...am I operating with bad info and there is just as much financing for individuals and I'm just looking in the wrong places. (i.e. seems like most hard money lenders want at least 2 deals under your belt before they will give you a solid rate.)

The more nuanced the answer the better. Thanks

Has anyone had success finding a NATIONAL OR ONLINE lender who will refi 80% for low value properties $99k or less? Also, at a reasonable rate. I have not found a true refi rate for loan amounts below $100k.

I am currently offered a rate around 4.2% due to the low value with $0 origination with my local lender.

Thanks!

@Andrew Syrios that’s interesting. What stage of the deal were you in at that point? Was it past due diligence? Also was there financing involved?

I am wondering if There is a precedence to legally force compensation from seller for expenses thus far (Inspection, agent, time, wire xfer fees etc.) in a deal that is under contract signed by seller requiring sellers disclosure but has not provided during due diligence?

To be clear...I want to close and have made good faith effort on all aspects however seller has allowed due diligence to lapse without responding with requested items. (The contract states the sale is not considered as-is if a due diligence period applies.)

As I am seeking a possible precedent rather than a suggestion on what I am able to do, I would greatly appreciate an informed technical/legal response rather than speculation. 

Thanks in advance!

Thanks Ladd, is your SFH your personal property that you live in or is it a short term rental or long term? If it is a rental does your plan cover lost revenue from rental on it or on your 4plex?

Thanks again.

I am currently looking at a property in Central California near Sequoia national park. Can anyone give me definitive info on what you are CURRENTLY paying for insurance on your short term or long term rental property in areas that have been affected by the wildfires?

Thanks for the input Randy. I think mostly I was trying to determine how i find out if it is vacant. The access was really just more of finding out if it is allowed given that 1 in a thousand chance...i.e. one of the properties I am looking at for September still has a lock box for agents that my agent could theoretically access if we had permission, but as it is schedule for auction on the 1st, but I don't know whether I should be contacting the law firm or the lender to ask if it is vacant?