All Forum Posts by: Brit F.

@Stephanie Kern, I don't quite understand.  Do you need a loan to fund the property purchase and/or repair of the foundation?  If so, then yes, you'll have to get creative since typical lenders don't want to take the risk.

Once your repairs are complete and you're trying to Refi, the appraiser's report should reflect that there is low/no risk with the property's condition.  Typical lenders won't look back at a property's repair history.  Hypothetically, if a lender wanted details about the foundation repair, you would provide evidence in the form of an invoice, green tag, and engineering report.  That should be enough to close the inquiry and move forward.  If not, find a new lender.

Hi BP Admins, I'm working on a Member Blog post, and List formatting isn't working for me like it used to.  Neither Ordered or Unordered lists are rendering properly, both in Edit mode and Submitted mode: 

• In Edit mode, the ordered text is indented but no list symbol exists (no number or bullet) 
• After Submitting, the ordered text renders like any other text on the page; there's no indication it's an ordered or un-ordered list.

List formatting used to work for me, and today I've tried two different browsers with the same results.

Interestingly, List formatting is working here in the forum, as evidenced above, but it's not working for me in the Member Blog editor.

Any ideas?

@Sean S., you might want to talk to a local RE attorney or title company about it. In general, Warranty Deeds are preferred because they ensure clear title. You can certainly use a Warranty Deed to transfer the property to the LLC, and more specifically, you might want to use a 'Warranty Deed with Vendor's Lien' which spells out the lender/servicer, principal amount, trustee (in my state), and other pertinent info.

@Kayla Holbert, a conforming loan (i.e. the typical consumer residential mortgage loan) owned by Fannie Mae may be eligible for transfer to an LLC - under certain conditions described in section D1-4.1-02. I recently wrote a Blog article to explain it: How to Transfer Property to your LLC without fearing Due-on-Sale

@Kevin K., you're correct - the loan is too old.  But, if you were thinking of doing a refi, instead of going with a commercial loan, you could just refi into another conforming loan, and if Fannie buys it, the date would meet D1-4.1-02.

Alternatively, for the cost of doing a refi, that could cover many years of umbrella insurance.

@Sean S., yes, a conforming loan owned by Fannie Mae can potentially be transferred to your LLC.

Regarding asset protection, there's a ton of other threads on the forum covering that.  Let's not go into it here.

@Nick M., how did you arrive at $2k/mo?  If you were thinking that the 5% rate is monthly (based on $40k), then you'll be happy to know that it's an annual charge, which means your monthly interest would be $2000/12 = $166.  But, remember that's interest-only and doesn't include principal.

If you're a new investor, be careful with HELOCs if you're planning to hold the property for a while. Identify a short-term strategy to pay back the HELOC quickly, such as refi into a loan or sell.

Calculate cashflow based on what you think your long-term financing numbers will be. If you calculate cashflow based off the HELOC's interest-only payments, you might be unpleasantly surprised when your payments go up at the end of the HELOC draw period or when you refi.

@Michael Hartpence and others who find this thread, I just wrote a blog post to help people navigate Fannie Mae's Servicing Guidelines, section D1-4.1-02: How to Transfer Property to your LLC without fearing Due-on-Sale

For future readers who find this thread, I just wrote a blog post to help people navigate Fannie Mae's Servicing Guidelines, section D1-4.1-02: How to Transfer Property to your LLC without fearing Due-on-Sale

@Josiah Patrick Zebarth, having a degree (almost any degree) will keep your options open.  How about this recipe:

Find a community college and get a degree in construction mgmt, finance, architecture, or other field related to RE.  In parallel, get your RE Agent license and Loan Originator license.  Read more books.  This will give you a wide exposure to a variety of activities, builds your network, and limits your debt.

No matter which way you go, find something you're passionate about and stick with it.  Best of luck!