All Forum Posts by: Chase Lowry

I have not done this nor would I recommend it. I understand the reasoning behind it and can sympathize with poor appraisal reports. I do not want to go deep into this but in a quick summary, you could jeopardize the appraisers' license. My best advice would be to make sure you are getting the BEST comps in the area and not over-rehabbing the property. If you have tenants in the property when you are planning on getting the appraisal I would recommend offering to pay for their hotel for a few days so that you can get the place professionally cleaned. On another note be nice to your appraiser. A good or bad day for an appraiser can be the difference between pulling all of your money out of the deal or leaving money in. 

Also, I am not an attorney so do not take this as legal advice. However, I would not be too worried about the Due On Sale Jail. As long as you continue making payments on time your lender should not care that you moved your asset into an LLC.

There are attorneys trained to find people with assets and large amounts of wealth. 

Scenario 1(No LLC): Say you get into a car crash and it happens to be your fault. Victim Dan goes to attorney Mike. Attorney Mike sees that you have 2 homes in your personal name. Attorney Mike then sees that you have high equity in both of these properties... $$$. Attorney Mike concludes that it is worthwhile to go after you and your assets. Dan wins the case and you lose your portfolio.

Scenario 2(LLC): You get in the same car crash. Victim Dan goes to Attorney Mike. Attorney Mike does some research and sees that you are the member/owner of Anjali Holdings LLC. Anjali LLC is an umbrella LLC over 123 Main St. LLC and 123 South Dr. LLC. Attorney Mike deems this as not a worthwhile fight. Attorney Mike does not take the case. You keep your assets.

These are just hypothetical examples but for around $450 you can sleep well at night knowing your assets are safe.

GET THE LLC!!!

Great job getting in the game! 2 bed SF's can be great investments, I wouldn't count them out. As a start, you can count out a large portion of the competition as families tend to go after 3 beds and up. However, if you decide that you want to exit this deal by selling, you may be able to add a third bed depending on the SQFT. Either way, you flip it, you won't bat an eye at this investment years down the line when you have a sizeable portfolio. 

ROR BABY!!! Return On Relationships, well done.

Do you have the property under contract? Do you have a reputation for closing? You may be able to pay a GC a fee to come out and walk/bid the property, however, if you do not have the property under contract you will be ignored. GC's are in high demand right now and good ones are a dime a dozen. I would recommend either taking on a smaller project and getting a feel for costs/time. If you do in fact decide to take on a larger project MAKE SURE YOU HAVE AMPLE RESERVES. I recommend the first as property values are souring right now, and in my opinion, this will only continue as we are about to experience massive inflation. Get in a property that breaks even at last resort, very possible in the Cleveland market, and wait for 1-2 years...$$$.

@Jack Orthman Scum? Snake Oil Salesman? Hahahah, you have clearly never gone to a REIA or REI meetup before.

Yes, do it! Nobody cares if you've done 0 deals or 100, they just want to talk REI. Chances are some more experienced investors in your hood will hop in and bring even more value. All upside, 0 downside.

My gut tells me to just choose any and call it a day. However, understanding the Airbnb business model I can see how slow wifi could get some harsh reviews coming your way. I would do some more research, but at the end of the day if this is just 1 Airbnb would 500$ really make a big difference over 50$?

BOOM! That's how you do it. Great deal, and great lessons learned.