All Forum Posts by: Bryan Hartlen

 Do you go into value-add deals with the $5k/door in reserve or so you build up to it over time using cashflow?

Thanks @Chad U.

@Dan Sarao completely agree.... It's marketing.  Great example is pictures.  If you happen to invest locally, have you ever walked a property where the property looked as good as the pictures?  Same goes for the financials - they're painted with rose color lenses.

Ask the selling broker for the last 12 months income statement and rent roll.

Many are performa cap rates.  Always check actual income and expenses to see how close reality is to the marketing.

Hey Chris, we’re not going backwards.  We but non performing notes and can’t always complete a workout with the original payor.  If we have to FC, or they DIL, we end up with the property. Before we rehab the property we offer it for sale; as-is with a seller financing option.  If it sells with the seller financing option we want to make sure we can easily sell the new note and we remain compliant... so we want an RMLO to underwrite and provide assurances of compliance. 

I had assumed that there would be vendors offering this service for seller finance notes. 

Thx Fred. I should have been more specific. I was wondering if anyone uses a 3rd party RMLO that underwrites nation-wide?  

We buy NPL in several states. If they become REO's we usually offer them with an as-is seller finance offer.

For those of you that end up creating your own notes... who do you use as your underwriter?  Pros & cons if you’ve used multiple vendors.

Thanks, Bryan

Hi @Andrew Cheek I'm not an accountant but.... LLC's don't really pay taxes. They're a liability shield not a tax shield. Earnings and loses are distributed by the LLC to it's members through K1's. The members (individuals or corporations) then pay taxes on those earnings.

If you're holding a rental duplex in your name, I would highly suggest you move it into an LLC (with the assistance of tax / legal experts) to protect any liability claims spilling over into your personal space(home, car, investments).

If you're investments are large enough it could make sense to create a separate S-corp to perform management services that would have some tax advantages over having those fees performed by an owning LLC.