All Forum Posts by: Christopher Brainard

@Kyle Bergren

I doubt you're going to find a title company that will close a transaction without it. Your best bet will be to pay for the policy yourself. It will also save you trouble down the line if you sell, as that title company will want this sale to be an insured transaction. 

-Christopher

I really don't know. Typically, you want to put properties in LLCs for asset protection. If you're still on the deed (in addition to the LLC), there are now two directions that lawsuits could come toward your property and your assets are twice as easy to find in searches. If the reason for moving the property is identity protection, you should look into land trusts, if they're recognized by your state.

-Christopher

Can it be transferred? Yes. Transferring the property is simple: quit claim it to the LLC. Record the new deed. Done. I've done this on many properties, its much simpler than you would imagine it to be.

Will this violate the due on sale clause? Yes

Will the bank call the loan due? In today's market conditions, probably not. In the future, who knows. The bank is going to do whatever is in the bank's best interest. If interest rates increase, its more likely that they would call the loan due, so they can lend to others at a higher interest rate. If interest rates stay stagnant or go lower, it is less likely that they would call the loan due. 

-Christopher 

If your ROI is higher than the interest rate and you don't have access to other funds, there is no harm in keeping them. When you have excess capital available, I would prioritize paying off your student loans. The interest rate on student loans is typically lower, but they also follow you forever, even through bankruptcy, so the sooner they are gone, the better.

-Christopher

You should insist on having a draw schedule and penalties included with every contract that you sign with a contractor. This is not unusual in the slightest and is necessary if you're serious about investing. If there is no timeline, you will often find your project put on the back burner for project that do have timelines specified.  

-Christopher

Hi @Paul Sandhu,

This post is terrible in many ways. The fact that your applicants are women is irrelevant and I highly recommend a brief review of fair housing laws. Pointing out that they're attractive, unattached, and your implication that they're prostitutes, is also irrelevant information, as this does not affect their ability to pay or care for the property. 

As a landlord, you need to decide what qualifications your applicants need to have and uniformly apply them to every rental you own. If the house rents for $1000 a week, then that's the price for everyone. You can make the decision whether a small business can or can not be run out of your rentals, but this needs to be applied across your business, not just this applicant. You should evaluate all your applicants based on income and credit scores and apply this uniformly, regardless of race, religion, origin, familial status, disability, or sex of the applicant. 

-Christopher

Hi @Jeshua Patrick,

If its your rental criteria and how you've screened everyone in the past, you should stick to it. However, to me at least, I'm not sure its very relevant for their ability to pay the rent. I've had many tenants rent from us when they were relocating for a job, prior to them purchasing their own house. I've found credit scores and three times the rent in income to be far better indicators of their ability to pay. Additionally, you could also look at it like lenders do, and make sure they've maintained employment in the same field for a given period of time without gaps. 

-Christopher

Hi @Anthoney Hanks and welcome to BP!

Sounds like you had a pretty rough first flip, but you also learned a lot, which is key for the future. Most people go through the same learning process, so don't beat yourself up about it. Hopefully, you'll find something better for that second flip and get your investing career off the ground. Just remember, you make your money when you buy, and with how tight the DFW market is, you need to be ultra selective about choosing your project. 

-Christopher

@Mike M.

I bet that looks amazing in a spreadsheet, but probably irrelevant to the real world. As you gain experience in the real estate world, you will find out that each property in each market has different levers affecting it. Rents go up and down, Values go up and down, and the Macro Real Estate Market has its own cycle. The majority of your wealth will be made by buying the right property, at the right location, at the right price and exiting that property under optimal conditions. Being a landlord is all about having someone else buy you a house and you for the privilege - your job as the investor is to make sure its the right house.

-Christopher

Recession? Yes please! Sooner the better!

Recessions are periods of great wealth transition for those who can take advantage of the market.

-Christopher