All Forum Posts by: Brian Kantor

@Dave Foster, I have been told that I cannot do a cash-out refinance on my property because it's owned by my LLC. I've called a bunch of credit unions as well as my national bank. Do you know if this is possible, and if so, where I might be able to look for a lender who'd be able to handle?

I am in a similar situation and have heard that most lenders simply don't allow an LLC to do a cash-out refinance, and I was told that I'd need to get a portfolio loan using my property(s) as collateral. When I spoke with local credit unions around Detroit (where my property is located), they wouldn't lend to me because I am out-of-state.

I spoke with Bank of America, where I do the bulk of my banking, and they want to see $100k in annual revenue + 2 years in business to consider me for an unsecured business loan and $250k in revenue for a secured loan.

Can anyone recommend any sort of financial institution that would allow an LLC to do a cash-out refinance? I think BP rules prohibit posting of that info, but please DM me if you have a suggestion.

Many thanks, and @Rebecca Williams, I will keep you in the loop.

Hey, @Matt B.. Detroit is great, but to @Keyonte Summers' point, it's very block-to-block vs just neighborhood-to-neighborhood. I just purchased a SFH in Warrendale, and one block could have a ton of burned out houses and the next be totally fine. Certain stretches of streets could be perfect, and then once you cross a specific avenue, everything changes.

If you are willing to put in the work, the city (and burbs) have a lot to offer investors (aka low out-of-pocket and strong price-to-rent ratios). Find yourself an experienced agent and property manager who know what they're doing, listen to their advice, and you'll be fine. That said, don't waste their time if you're not willing to do your homework. DM me if you want some recommendations.

Hi, BiggerPockets people. I just closed on a SFH in Detroit and looking for some recommendations for insurance broker(s) to handle my landlord insurance and/or my umbrella liability insurance. (I have a stop-gap policy through my property manager, but want to swap in for a "better" policy when I can.) Property is held in an LLC.

I am not necessarily looking for the cheapest policy, but one with an easy/friendly claim process should I need to file one. I hear a lot of disaster stories about people struggling with the cheap insurers to get the funds they are owed quickly.

I am willing to pay a higher deductible for a lower monthly premium.

Any help with some suggestions would be wonderful. Thanks!

-Brian

Hi there. Closing on a SFH in Detroit and looking for some recommendations for insurance broker(s) to handle my landlord insurance and/or my umbrella liability insurance. (I have a stop-gap policy through my property manager, but want to swap in for a "better" policy when I can.) Property is held in an LLC.

I am not necessarily looking for the cheapest policy, but one with an easy/friendly claim process should I need to file one. I hear a lot of disaster stories about people struggling with the cheap insurers to get the funds they are owed quickly.

I am willing to pay a higher deductible for a lower monthly premium.

Any help with some suggestions would be wonderful. Thanks!

-Brian

Hey, @JR C., can you paste the text of the section of the proposed law that you referenced in your initial post? If any attorneys are reading this thread, would love to get their POV on strategies, protections, and loopholes. Thanks!

I did find this:

Link here.

I interpret this to mean that if you own your rental property free and clear, your property is not covered by CARES Act. Not sure if I am reading that correctly, though.

While this won't help you today, @Zaid Badabwan, it may be helpful to avoid this issue in the future. I include a clause in my lease:

Full-disclosure that I have yet to be in a situation where I've needed to enforce that, so TBD how it plays out in practice. But as @Cassi Justiz mentioned, things may be different with the current CARES Act, so be mindful that what you're doing is by-the-book.

Please post here when you end up resolving. Would love to learn what ended up working for you.

Hey, @Evan Jones. Laws vary by state, but assuming that you are buying the property in your name vs in an LLC, it isn't really "trickier" to acquire an investor loan. It's just a different type of mortgage with rates that arent quite as good (I was recently quoted about 1-1.5% higher for an investor mortgage than for a personal mortgage. Also the downpayment as a % of the loan amount is typically higher (20-30%) vs what you can get on a personal residence mortgage.

If you are looking to buy with an LLC, then yes, it is trickier on multiple levels. Without getting into detail, you'd most likely either have to pay cash, get a commercial loan, or quit-claim deed the property from your name to your LLC which would double your closing costs if it's even legal in FLA (varies by state).

Hope that helps.

Thanks, @Drew Sygit. Very helpful.

Very cool, Josh. Would love to hear a little more about the earlier phase of this process. ie, contacting your 401k provider and structuring the purchase in a way that "they" could purchse. In other words, what was the groundwork needed to do this and also what was the downside (if any)? For example, I know that you can borrow against your 401k for a penalty, and I'm wondering if there are any similar fees/penalties for setting this up? Can something similar be done in a Roth IRA?