All Forum Posts by: Bryan Satter

@Chris Purcell - not sure how that will only cost you $1000-1200 - I am fine with that amount. But dealing with bigger numbers here. 

@Bill F. - I am still communicating with different options, thanks for the encouragement. I remember that podcast for awhile ago! I will revisit it!

@Andrew Beauchemin - you are correct 25 year amort... The rates come from some of the private lenders I have encountered. Most banks will only lend to me in my own name at the 5%, but that defeats the purpose of having the LLC in the first plae plus I would have to incur a pair of transfer taxes.

But your point about continuing to explore is a good one.

I will update as I find new info for those who may be in a similar boat!

Here is a sticky situation - happy to hear any suggestions!

I purchased a multi family in Philadelphia. Along with a partner we bought in the name of an LLC. Borrowed some private money (family, friends, etc). After making improvements, now looking for a cashback refi.

Any bank I ask will not lend if title is held in an LLC. They require me to change title to my individual name. Except Philly charges a 4% transfer tax to do that. So that option means out $6500 and also lose value of holding in an LLC. Then to get property back in LLC, that is another 4% transfer, now at a higher appraised value, so probably another $10,000.

Option 2 is to just accept a commercial loan from a private lender - charge about 9% on a 25 year loan. 

It is like I am being penalized for protecting myself in the LLC with the initial purchase.

Anyone have any experience with not being able to get a loan through an LLC (or a much higher interest loan!) or dealing with Philadelphia and its' transfer tax??

Thanks!

Good afternoon! I am working with a realtor on some property opportunities and she has me set up in the MLS. But I also scour craigslist and some other FSBO sites for properties that might not appear on MLS. Does my realtor have a role in helping me set up a visit to a non-MLS listed home? Does she have any role at all in that conversation/deal, or am I on my own dealing directly with the seller? Just curious about other people's experiences.

Oh - and I am an out of state investor. I do have a boots on the ground partner but not going to lay eyes on anything myself.

Thanks!

Excellent advice, all. Especially Joe with regards to working with a local realtor and getting language in the contract and Brie with regards to having a local BP member attend a walk through. Fabulous!

When I say quasi turnkey, basically, I was presented an opportunity with some well-meaning but completely disorganized people I have had dealings with in the past The property is currently owned by sickly older gentleman who is overwhelmed by an unpaying tenant and the property suffers from some deferred maintenance. I was presented with the property having an ARV of approximately $20-$30,000 above all-in cost. Some nice built in equity.

They were willing to do all the work for me for a price that made sense, but as I began to ask questions, I realized they just werent quite ready for this type of operation. They have given me some quotes on scope of work, but it was nothing very formal. So I want to verify these costs before I close. They also wanted me to close with the unpaying tenant still in place, which I refused to do. They have offered to do property management but I have chosen a PM of my choice to oversee repairs and manage it for me. So it is definitely not turnkey in the traditional sense (I actually own one turnkey through Memphis Invest, which is fantastic). 

Bottom line is I think the property has the potential to contribute solid built in equity and very good cash flow. So i dont want to entirely let it go. But I am being very careful here and I want everything to be done on my terms, not theirs. Happy they found me the deal, but in the end I will treat them more like wholesalers, and just make sure I have good, vetted professionals on my end, looking out for my interests. 

There is no question in my mind this can be done and that investing out of state will prove much more profitable than investing here in Massachusetts. But like everyone here suggests - I am completely willing to walk away if I dont feel comfortable. 

Ok - so I can treat it just like a regular home purchase - even if it is being sold as-is, investors will have an inspection done before closing. I have not signed anything yet so I will make sure that language is put in the contract. Great call Alexander A. Thanks!

Hello BP! Thanks in advance for your feedback!

I am working with a quasi turn key company to purchase my first out of state property. The numbers are good in all respects and I am fairly comfortable with the deal. It currently has a tenant who is terrible but I have out it under contract saying I will not close unless property is delivered vacant.

My main question is how to accurately gauge repairs needed. I've been given an estimate by the middleman I am working with. But since this is a place I will not be able to see myself I would like someone on my side to independently verify the scope of work. Since this is an all cash deal and the tenant issue exists, am I able to get a home inspection before I close? Would really like a second opinion from someone I hire to look at it. 

How do you guys handle out of state investments that you can't see and are paying cash for? Thanks.

OK - thanks! Sounds like I am headed to the library... or Amazon.com. Thought I had read enough to move forward but I will take your advice. Thank you very much.

Hi everyone! My first post, so thanks in advance for the insight!

After years of reading, studying, talking, etc., I vowed to jump in the pool in 2015. Best way to learn is to do... my goal is to undertake a flip project. I have met with an agent who is sending me potential projects every day. I have been working to secure funding so that when the right project comes available I am ready to pounce. 

But how to proceed from here... my thought is I should go and look at some potential properties to get a feel for what they are like and to begin an analysis of its' potential. Early on I would not care so much about getting the property, but more so going through the exercise of evaluating its profitability. Does this make sense? And if I go look at a property, what is my best strategy to estimate expenses? Speak to my contractor contacts and ask for estimates? Get someone to come and look with me (I dont want to waste anyone's time, and is it realistic to have a contractor come and look at every house I look at?)

I want to take this next step forward, so any input is greatly appreciated!

Thanks!

Very impressive and inspirational. Love hearing those motivating tales. Keep it up!