All Forum Posts by: Brian Kantor

@Timothy Hero, dumb question perhaps, but what does that mean?

Hey there. My first property I purchased in all cash, so had no problem obtaining it with my LLC. Now as I look to property #2, I'm looking to other people's money to help me get the cash I need to fund the investment.

As I'm sure that most people in here know, it's tough (impossible?) to get a mortgage or do a cash-out refinance through a traditional bank with a property being held in an LLC.

I've spoken with a ton of hard money lenders who would fund my deal with the LLC, but the interest rates are always super-high. I've found that hard money makes a ton of sense for a fix-and-flip where the holding time of the loan is short, but for a property being held indefinitely, the math just doesnt work.

So, my first question is two-fold:

1. How are other long-term rental investors with LLCs structuring their loans with professional institutions (banks or hard money)?
2. As I do have people in my network looking to invest in my deals, what are fair terms to offer them?

Looking to private money specifically (aka, inexperienced investors looking for a safe investment to make a fair return), I can't seem to make the math work on a loan for anything fewer than 10 years (for this specific property). 

Digging in a little deeper:

1. Are people having luck with private money lenders accepting loan terms of 10+ years? 
2. Or do private money lenders typically walk away with amortization periods so long? 
3. If so, what can make it compelling to them? What sort of annual return is fair? Do you use simple or compound interest?
4. Has anyone had success in doing a cash-out refinance with a private money lender? And if so, how did you structure it?

I ask because, I personally feel that if someone asked me to lend them money for a 10+ years, I probably wouldnt want my money tied up for that long.

Or is my better bet taking out the loan in my name with a traditional bank for now and then coming up with a strategy to move it into an LLC sometime in the future?

Many thanks!

-Brian

Hey, @Aubrey Manning. Congrats on taking the plunge. 

My wife is a Neuropsych, so somewhat overlapping fields. We live (rent) in Brooklyn, but invest out of state. 

I have one rental in Detroit (single-family) and am about knee-deep in finding my second (a triplex in the DET suburbs). I've also looked at Pittsburgh and Hartford, which are both interesting markets.

If you have any specific questions here about out-of-state investing, feel free to post here or shoot me a DM.

Take care.

-Brian

Hi there. New to the Hartford market and currently evaluating some distressed multi-family units with my agent.

Ultimately going to need a reliable licensed and insured GC who is experienced in working with investors. I'm looking for someone who understands that I'm not looking for "Forever Home" quality renovations, but who I can trust to get the job done well and at a fair price. Would love someone who can offer suggestions on where to spend a little more and where to spend a little less.

Would also like to pay this contractor to take a look at a target-property during or just before closing to get a sense of estimated renovation costs.

Thanks in advance, and take care!

-Brian

First, whether we want to accept it or not, covid is real. Two people in my network have died, one older (late 60s) and one young (late 20s). 

Are the odds high that your guests are going to catch covid from your property? Probably not, (although that varies geographically). And of that group that might catch it, will they die? Also unlikely. 

Does that mean, we shouldn't take preventative measures to keep our guests safe or that it's unfair for Airbnb to impose regulations? Absolutely not.

I like your drunk driver analogy, and let me take it in another direction. Think about it this way: if I go out and crush a six-pack, drive home, and get there safely with no accident, does that mean that I made a smart decision or made the right choice? No. It means that I got lucky. Just because the result was me getting home safely, doesnt justify me ignoring the safety precautions.

If I host people in my home via Airbnb, ignore their protocols, and my guests never catch covid, did I make the right choice? No. It means I got lucky. Again, the probability isn't the issue as much as taking steps to play it safe.

Can Airbnb check to ensure we meet these new covid requirements? Some maybe, but it seems most are on the honor system. 

It's in the host's hands to decide whether they want to abide by the rules or not, just as Airbnb has the right to implement them in the first place on their marketplace (to protect themselves from liability). 

If we want to follow the rules, great. If we want to ignore them, go for it. But know that we run the risk, no matter how small it may be of someone getting sick and then we get sued. Rules or not, in my opinion, take whatever measures you can to ensure the safety of your guests without putting an undue burden on yourself. 

Most of the measures on the Airbnb list seem "easy" to assign to your cleaning staff. What's a few more things to add to their list? Maybe you pay them a bit more for the time it takes to execute, but in the bigger picture, this wont impact your margin all that much.

Consider how much $$ you'll lose by de-listing from Airbnb. If you'll lose more than you'll spend by following the rules, regardless of your personal opinion or desire to keep your guests safe, your decision should be an easy one.

Not sure from your note if you already own the property or not, but regardless, you could also do a cash-out refinance. And there are plenty of investor-specific lenders that do those in addition to traditional banks. Construction loans are also a decent option.

If you really wanted to get cray, you could take a loan out against your 401k or Whole Life policy, but especially with that 401k, you absolutely must pay it back within a set time-frame.

No problem!

Hey, @Ronald Mejia. I have found lenders willing to do a HELOC on an investment property. I try to call 2x lenders a week and ask them specifically what types of loans they'd do with and without an LLC. No two have the same policy. I've assembled a nice list that I can put into a spreadsheet to analyze the terms of each and what they offer. It takes time, but is worth the effort.

Also, does it need to be a HELOC that you're happy with? Plenty of other loan types out there, obviously.

You can DM for a lead, but I don't know if they will lend in your state (my property is in Michigan).