All Forum Posts by: Brian Kempler

I buy in Birmingham where okayish properties list for 50k, can be rent ready for 2-5k, and have ARVs of 80-90k.

If I can put 5k in and get the appraisal to 85k that will allow me to be front end profitable on rentals after refinance. 

Do you guys have tips on getting a great bang for your buck appraisal-wise? I almost need to please the appraiser more than the tenant. Putting in 15k+ wouldn't work, I'd be negative on the front end.

Can anyone recommend a collateral lender who lends against promissory notes? We're calling around and getting interest from maybe 5 to 10% of the lenders we call, but nothing solid yet.

The promissory notes are generated by an RMLO during resale of our property on owner finance terms. I know I have other options like selling the notes or partialling, but this question is more focused on taking collateral based loans against the notes.

Ok point made. I am doing these deals currently. Let's refocus on the topic question.

They have no choice, I sell to non-qualified buyers (They have a down payment but can't get a bank loan).

Single member LLCs default to pass through taxation

Thanks Kevin. There is no institutional lender in the transaction though. I am selling the LLC on an installment sale to the homestead buyer. I would like to use commercial loan terms like balloon payments in the installment sale agreement. The buyer intends to live in the property owned by the LLC.

So in this case the only "loan" are the terms between the buyer of the LLC, and me as the seller of the LLC. I think of it as a land contract for a business sale.

Hello, if I sell an LLC holding real property to a homestead buyer, can I use commercial loan terms on this (business/holding company) sale? Specifically: skipping RLMO, having a balloon payment, and prepayment penalties.

 "It is wise" -- Is it also legally required by the consumer protection laws you mentioned?

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 My buyers are and will be homestead buyers eg owner occupants