All Forum Posts by: Brad Shepherd

Awesome share, Chris. Congrats on the success, clearly because of your and your team's persistence. So now you have three syndicated deals, one each per market, in three distant and distinct markets, right? Any concerns about being spread thin or not going deep within a single market to fully extract the value from a deal?

It's a team sport. Work with partners that you enjoy interacting with. I would have been much further along had I partnered up sooner. You don't have to/ shouldn't do it all! There are ways to participate in multifamily deals without being the guy that chases brokers or sellers to find deals. And go big. I see a lot of people get bogged down in 5 to ~80 unit type properties that just don't have the economies of scale to afford true professional management. 

Justin, I'm not 100% I'm answering your exact question, but here's a shot at how I've understood what you're asking. There's no reason you can't do an owner occupied loan on another 1-4 unit property. Your lender may require you show them a lease for the unit that you are now living in and intending to rent out once you vacate. Just let the lender know that's your intention, get your place rented and be ready to show that lease when the underwriter requires it. 
And you can only have one FHA loan in your name at a time, so you may need to find another product (which is not hard right now) or refi out of your current loan if it's an FHA and you want to do another FHA. I've never heard of a requirement that the loan amount be higher than your existing property. There's no relation. House hack all day long! Rinse and repeat.

Definitely not alone. We have a fourplex in San Antonio where not a single tenant is paying. Some have legitimate reasons. I think the majority though are just taking advantage of the situation. Our property manager was able to get court dates for two that now have expired leases. And we're still pressing to get dates on the other two because they've shown no proof of applying for assistance, which is what they've attested to with that CDC form. 

Other landlords have had some success getting tenants connected to those relief programs. You can look for local resources and provide those to your tenants. Heck, even help them fill out the application together.

You're probably right about not qualifying for the PPP loans, but what about the other disaster relief loans? Have you applied for those? We've been successful there. Google SBA EIDL loan. Go straight to the SBA site, not a bank. 

Check out Roscoe Properties. They manage two complexes we're involved in here in Austin.

@James Webber First, good on you for working hard to move on from past mistakes. We all have those!

Second, you probably already have thought through this and have your reasons, but there are plenty of ways to be full time in real estate without becoming a licensed agent and where a criminal background wouldn't come up. Rehabbing, wholesaling (not likely a long term plan I'll admit), development, landlording, etc.

Emulate (I'm not saying copy!) the best. Joe Fairless, Michael Blank, Dan Hanford, Whitney Sewell, Goodegg, etc. Sign up on their email lists and see what they talk about and how. You'll find lots of similarities.

Does your income qualify you as an accredited investor? And are you wanting to keep your job or find a way out as soon as possible? If you like your work, it could be worthwhile to consider participating in commercial syndications where you're truly an investor and not dealing with the hassles of smaller rentals. I did rentals for 15 years. Selling them off and putting that money into syndications brings me joy!

Thank you all. The entity is a plain LLC, no corporate election, but I do have a partner in this particular deal so it feels like we need to be a bit more cautious. @Carl Fischer, the transfer taxes is certainly a concern. Planning on the recording fees for sure, since that'll happen coming and going. But it sounds like overall there's not much concern for major tax consequences. I certainly appreciate everyone's input.

(This is not a due on sale clause question.) It's common practice to deed a property out of then back to an LLC during a refinance process in order to get better loan conditions. I'm considering this, but nervous about tax implications. Has anyone ever experienced any tax issues from this process, or know how to avoid any issues? Because technically this is a distribution to the LLC members, and wipes out the cost basis of the asset (deeding it back and forth "for consideration of 10 dollars"). I know this deeding trick is common practice for loan purposes, but I'm really curious to hear thoughts regarding the tax implications.