All Forum Posts by: Daniel Jenkins

Excellent! Thanks for the feedback, Josh. Only question is - are the rates and fees on hard money not so high that they wipe out profit on more marginal deals. Feels like the market is so competitive on the buy side that every % makes the difference when underwriting. I have no Idea if this is true, just a theory. 

Hi All -

I'm looking at buying an off market fixer property in Charlotte for around $150k with an ARV of +$250k with a rehab of around $60k. I'd really like to keep it but would prefer not to tie up capital in purchasing cash and rehabbing using cash.

Can anyone suggest any funding strategies and connections that might be able to help with a rehab loan to best structure this deal?

Thanks very much.

DJ

@Ashish Acharya you the man! Thank you for the very detailed response to the questions and makes perfect sense. I'll definitely look at the LLC - personal - LLC route if I can't shift this asset quickly enough and need to hold.

Looking at your profile it would be great to chat further about longer-term strategies that out-perform this last purchase... although that shouldn't be hard.. it was a bit of dud LOL. What's the best way to reach you?

Really appreciate the response, @Christian Stoecklein. 

Up until this morning (when I just filed the amendment) the entity was multi-member. Just removed the other member so now it is a single member, or at least once processed by the state.

good point on the transfer taxes. I calculate those to be in and around $380-$400 based on where I am.

The quote I got was for an investment property, yes and the rates were higher but ideally I would like to just sell it and move on to a better deal. Overpaid for this from the start but you live and learn :)

I'm assuming it's better to keep the LLC to allow me to write off expenses related to the property rehab and travel etc or does the single member entity factor still count and my return would be treated the same as a self employed or personal tax return anyway?

Hi All, 

Just looking for some advice and recommendations for an excellent CPA. 

I purchased my first fix & flip in March this year in Charlotte, NC. Purchased all cash from a wholesaler. After reading various sources I went the route of forming an LLC and purchasing through that. It hasn't turned out to be a great deal as the rehab was far more than expected but fortunately, market appreciation might end up saving my bacon. The might be very small profit or a slight loss after all sales fees etc.

My question is related to taxes. I'm married and file jointly. The rehab should be done in the next couple of weeks at which point I will list it for sale. My concern is that it won't sell for a price that I will recoup the investment. If that's the case I'll need to rent it out for a while and loan products seem to be much much better for a personal loan vs. LLC.

I can deed title of the property from my LLC to myself now (a simple process) but:

- Will this incur taxes at the time of transfer?

- Does there need to be a financial consideration for this to 'pay back' my LLC which made the initial investment?

- Is it better to just sell the property from the LLC so that the buy, the rehab and the sell are all contained within that entity?

Any thoughts and advice on this would be very much appreciated. 

Thanks very much. 

Dan

Hi BP family!! I am looking at a small (15 unit motel) in Atlanta. It needs $250k-$400k rehab. Purchase price likely around $750k so all in basis of around $1.3m.

While I have been working in hotel development and and investment as a day job for years for a company, this is my first acquisition for myself.

I would really appreciate any advice or thoughts on what financing options might be available and what could be best way to go about this? What kind of LTC/LTV could I get? Are there non-recourse loan products available?

Thanks so much for any help and guidance.

Dan

Hi Bigger Pockets Fam - I have a great off market deal under contract in the Charlotte N.C. area and looking to network with any contractors and real estate investors. Looking for cash buyers... 

Send me a message and I’ll share more info.

Have a great day!! 

Dan