All Forum Posts by: Tiffany C.

I'm about to embark on my first fix and flip. I have one partner who will be funding the deal with a HML and some cash reserves. I need help on setting this up properly. Each of us has a separate LLC but we are also creating an LLC for this one deal. My questions are

If my partner secures the purchase and rehab funds through the Hard Money Lender in his LLC, will we be able to get our joint LLC on the title? Should we qualify the funds with the HML under the joint LLC. If not, once we form the joint LLC should we get a bank account for that LLC and have all the funds circulate through that one account or should my partner who is funding the deal keep all the funds in the bank account in the name of his LLC and just cut checks from that account?

@Adrien C. thank you! This information is very helpful.

Hi Cassandra 

Henry County is my target area. I am going to PM you.

@Adrien C. thanks! GA is an attorney state. Thanks for explaining in detail. Now I have to do the research so that I can explain it to the seller. Since the seller will hold the mortgage note are there specific sale agreement docs that would outline this arrangement? I'm willing to do the research if you would just point me in the right direction. 

@Adrien C. Please see above reply. I didn't do the tags right in the previous post.

Hopefully these tags work.

@Adrien Chabot Thank you for that feedback. That was the price I came up with. I really appreciate your insight.

@Steven Picker The strength of the offer depends on your perspective.  It's just about figuring it out your market and what works in real live situations. In my opinion this offer is reasonable considering the house has been sitting on the market vacant, no offers. The couple is still paying insurance and taxes. I'm trying to solve a problem so that each party benefits. I'm not putting $5000 down on a property that needs $20K in repairs under seller financing terms. I might offer $1000 contingent upon the property being rehabbed and lease optioned to an end buyer for $3000 - $5000 down payment. I'm not trying to take advantage of the seller nor am I trying to be taken advantage of.

@Steven Vaughan I appreciate your feedback. $950 is okay. I mean once I consider expenses, the payment to the seller, and money that needs to be put away the monthly cash flow is $250. Which is my target for each buy and hold unit I have. Just to clarify, you would offer $41K? Would you buy it cash or would you be looking to refinance? Would you refinance and not pay yourself back the rehab money and then get your 20K over time by holding on to the property for a long time? Finally, this option will be notarized, a lien will be documented, and I am consulting an attorney. I just want to make sure this is legitimate for all parties involved. 

Thanks again guys!

Hi BP

I have a lead that I need help structuring and I'm hoping for some really good feedback! 

The property is a 3/2 in a Metro Atlanta suburb, C+ neighborhood. 

Asking price: $50K

ARV: $66K

Repairs: $20K

Potential Rental Rate: $950

Background: The owners purchased the home cash in 2012 for $22K as an investment property. The owners were unable to sell the property with a realtor. The home is owned free and clear, but needs some TLC.

I would like to make a seller financing offer but I need help structuring the deal. I want to take control of the property through a lease option for 3-5 years, no money down on the lease, $100 down on the option, pay the seller $225 per month once the property is rehabbed and rented. My exit strategies are to lease option the property to an end buyer for 2 years or rent the property and refinance it. 

My questions are:

1. Should I offer $50K considering the fact that it has to be rehabbed? (I'm familiar with the 65%ARV - (repairs + costs ) rule of thumb) However I've read that unless I am looking to wholesale a property I should be offering closer to the asking price when seeking owner financing. But offer $50K + $20K in rehab (not including additional costs... future closing costs when the end buyers buys it or the LTV requirements of the lender I wish to refinance with).

2. Is there any other way I can do the rehab without using my own funds? Would hard money work in this situation  (probably not unless I plan to exit the deal within 6 months - a year)?

Open to any useful feedback and thanks in advance.

Hi everyone! I am currently building my rehab team and would greatly appreciate any recommendations for Investor Savvy CPA's in the Metro Atlanta. The closer to Henry County, the better. But I am willing to travel.

Hi Leon 

I'm a newbie as well, also pursuing rehabbing first and then buy and holds. I'm adding a link for you that includes the REI clubs in GA. I have a mentor who flips in Dekalb County. If you would like to connect please feel free to private message me! Good luck.

 https://www.biggerpockets.com/rei/georgia-real-est...  

Hello. I am a new investor in the greater Atlanta area. I invested in my first property in 2011 . Since then, I have been learning all that I can so that I can invest on a larger, more profitable scale. I am currently pursuing Wholesaling to build the capital I need for other ventures. I took a Wholesaling course earlier this year and recently started my first marketing campaign. I have one mentor but I am seeking a second mentor who is a seasoned and successful wholesaler that does not mind answering lots of questions.  I am very interested in networking and connecting with other investors and RE professionals in my area.