All Forum Posts by: Chris Krinslow

Hello all,

I'm trying to get a loan on a property listed at $810,000. I have the cash to make the purchase, however it would put a very significant dent in my bank account.

I have one lender that makes their loan calculations based purely on rental income minus expenses. This one generates a very low return so I can't work with them. I'm not buying it for the return, I'm buying it for land value appreciation and also the zoning to redevelop it in maybe 10-15 years (Or longer - I'm in no rush) down the line.

Another lender bases their loans off of income/assets. I'm good in that regard, but now I just found out they don't give loans on parcels of land that contain multiple buildings. This property has two separate (Unattached) living units on it with two separate electrical meters - but they both have the same address. 

In spite of the low return, I am very very sure that this property is a great return in the long run and massive development potential either for myself or to sell to someone else (Up to 20 units can be built on the land. Similar to buying in San Francisco or a gentrifying area. 

Is there any way to get this done? 

Maybe as an owner occupant? Buy with cash and then? (No idea what I would do after).

@Jon Holdman

@Travis Sperr

Thank you both very much for the replies! It will help me a great deal in phrasing things properly when I ask questions. 

It's definitely an uncommon situation for the area/city. I spend a few hours on the property appraiser website each day and I believe it's the first time I have seen this. 

Haven't accounted for the style on my valuation. That's an excellent point. I got caught up in the return, potential and location, but you are right - it could (And will likely) harm the value a good amount when looking to re-sell. Beyond the easement concern, that's something I will have to figure out when I see it in person - the area where the two property lines meet and how that may appear to a future buyer.

I was inquiring about a property and the listing agent told me of another one she has for sale that's currently off-market. It's in a very good area of the city (Miami) and I'm confident it can generate a solid return based on the asking price, however there's just one catch (There always is!) -

The property is located behind another property. There are basically two homes (One in front of the other) on a rectangular shaped piece of land. They are on two separate folio's, owned by two different families, and each pay separate property taxes. 

So you have the road, and then a home with a drive-way. And behind that one is the home for sale. As of right now it looks like there is a "side driveway" leading to the back home. But I think that technically the "side driveway" is owned by the owner of the first home as it passed through their land. 

I'm wondering if this could present problems if say the owner of the "front house" is not friendly towards the new owner (potentially myself) or if the front house is sold at some point and again the new owners want to cut off access.

I wonder if they can legally cut off access or would they be required by law to provide access?

Too bad I'm not wealthy enough to offer helicopter service to tenants :P

Any help, advice or experience with such a situation would be appreciated. I have a lawyer, but this is not the type of question he specializes in. Working to find someone who can but figured I would ask here in the meanwhile.

@Trista Fenner

@Snehann Kapnadak

Thank you very much for the suggestion/advice. Huge help to get a recommendation rather than just finding someone off of a Google search. We (I'm in a partnership) have reached out to Jeff and are awaiting a reply from him.

I also received the contact info for one other lawyer and have reached out to him as well (Not sure if I'm allowed to post his name). 

If/when I get a reply or even if I don't - I'll post my thoughts.

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This purchase was made all cash, however I think for any and all future purchases we will use financing.

You make an excellent point however, as there was another property (Outside of Kansas) that would have required us to get financing. We had an LLC set up/lawyer assistance for that one, and the lender did state that we have to keep title in our own name to start off. One guy said that we could then transfer into the LLC's name, but another guy told use can't - and they were working for the same company. Seemed like even they were confused on their policy.

I'll definitely let you know if I find a good lawyer, however I'm not sure if I can use a Missouri based one, or if you can use a Kansas based one. But it looks like some of them may be working both states. Either way, if I find someone that's worth recommending (Or not worth recommending!) I'll contact you. 

Hello all,

Long time reader, first time poster. After months of research I have just purchased my first investment property (Single family home) in Kansas City, KS. I live out of state however (Texas) and I am looking to create an LLC for the property to be under before I rent it out.

Is this a good move? 

I don't plan on giving it out to a property management company (At least not yet) since it's only a single unit and I think I can make arrangements to assist the tenants in case something needs to be repaired or replaced. 

From what I've read, it's a good move to protect myself and my other assets (Bank account, home, etc) from potential lawsuits.

Can someone please recommend me a good registered agent/lawyer for the LLC formation?

And also - if possible, let me know the approximate cost I should be looking at for doing this?

Thank you very much!