All Forum Posts by: Brad Shepherd

It's paid to the title company, who then distributes it to where it needs to go - pay off existing liens, and proceeds to the seller if applicable. It functions just like any other loan, always escrowed through title. They and you don't want it any other way.

Do both. If you're looking for a job in real estate. Flipping is one of the riskiest paths in real estate but the most popular because it's sexy and gets the spotlight. If you're going to flip, get a mentor or a partner. 

Plug it into the calculator and take a look. https://www.biggerpockets.com/brrrr-calculator

Remember that on the refinance at most you'll get 80% LTV, but most likely 70% when doing cash out. So if the after repair appraised value is going to be $55k, at most the bank will loan you is $38,500 if you're pulling out cash, or $44k if you're not. If you're buying for $30k and not putting in more than $8500 of repairs, you can get all your money out.

But if you're buying it using your own cash, then dive into the forums and read up on delayed financing. You can buy with cash, then put the financing in place shortly after and that'll give you your cash back. 

Blaine, remember that you're looking to solve problems for home owners. You need sellers who are motivated to sell. If you're looking at a house with those numbers, there's not enough motivation on the seller's part and you're not solving anything for them. They're better off listing the house with an agent. You're not going to get them to come down $30k on their price. If you're looking for a rental, then sure, maybe it could work, based on the rent rates. But for a flip, move on and keep looking.

Right on. Yes, just do a search on here for BRRR and you'll find tons of articles. Brandon Turner wrote a great summary (https://www.biggerpockets.com/renewsblog/2015/04/20/how-to-100000-dollars-year-real-estate/), this is a great write upf (https://www.biggerpockets.com/renewsblog/brrrr-buyrehabrentrefinancerepeatprimer/), and several of the podcast guests dive into this. We've done several so far and will close on two more on Friday. It's a great tool to have in your arsenal.

BP even has a BRRR calculator. Keep this handy: https://www.biggerpockets.com/brrrr-calculator

Amen to the umbrella policy reminder mentioned by @Jay Helms. That'll help you sleep at night. Another common approach is to just deed the property back to your LLC a month or two after you refinance. (Give it time for your loan to be sold to the final note holder.) Yes, this opens up the due on sale clause and you can waste a week reading everyone's opinion on that, but the bottom line is that it's that it's done very often.

Brokers and direct mail. Use Loopnet to find brokers, and call them up. Be prepared with intelligent questions and clearly defined parameters. Then ask to be added to their distribution list. And stay in touch with them. 

Depends on what route you, personal or commercial loan. If personal, the lender will make/assist you in deeding the title to your personal name, and the refi loan will be in your name. Of course you can't buy/sell the house from/to your own LLC, it's just handled by a simple deed. You can still operate the house as a business within the LLC even though it's titled in your name. Just proceed as normal and they'll walk you through it.

Commercial loans with your LLC can be just as easy if not even faster to close. The loan and property will remain in your LLC's name. Start making relationships with local banks. That's where you'll get those good terms.

I'm not sure if you're quoting the details right, but as you've stated, it doesn't make much sense. You can't sell a property to yourself (I'd love to see the title company's reaction when they go to receipt that contract! :), or even from yourself to/from your entity. But it does sort of sound like what's described on this site as a BRRRR method: Buy, Rehab, Rent, Refinance, Repeat. It's not a sales transaction, but a refinance transaction that puts money in your pocket. The refi proceeds are not taxable, there are of course no agents involved to pay, though of course you'll pay the lender fees.

Does that sound like what you had in mind?

@Michael Greenberg, thanks for sharing that feedback. Interesting to hear.

I also have my properties on TripAdvisor and used to be on Booking.com, which seem to bring more Europeans. Each one is just a pay-per-booking arrangement and they all sync each other's calendars, so it's easy to set and forget. However, I'm with @Julie McCoy on Booking.com. Their website is horrific. I had to have an account manager walk me through how to set it up and what their jargon means. And they don't process payments, so you have to have a way to run a credit card but they only let you see the credit card info for a few days after the booking, even though the policy is you can't charge the card until something like 14 days prior to the reservation. I've had to go back to upcoming guests and ask for their card info because I either didn't capture it in time, they didn't put in a zip code which the card processor requires, or by the time I go to run their card they've canceled that card completely. Total joke of a process so I just turned it off. I have one more Booking.com reservation to go and then good riddance.