All Forum Posts by: David S.

Wow what a wealth of information you guys have! So it sounds like it comes down to determining whether you are at higher risk of getting sued or at higher risk of the bank finding out you transferred title.

I have been worrying a lot about the due on sale clause lately being that we are getting ready to purchase our first investment. I hear that the problem usually arises when you try to get insurance on the property and they notify the lender of the change in the insured. What is the best way to go about this? Is there a right time to ensure or a right way to ensure that reduces the likelihood that the lender will get pissed off and recall the note?

Thanks Cody L. That makes sense. And the reason I want the property in an LLC is basically just because all the books I have read say to do so. I'm still doing my best to learn here. We never had a whole a lot of money and it has taken a long time to get to the point in our lives where we can afford to do some kind of investing. I just want to do everything I can to minimize risk. I understand there's risk in real estate investing I just want to make sure that I understand my options as good as possible before making a decision. What are your thoughts on holding the property in your personal name and taking out a good insurance policy?

That helps a lot. So can anyone tell me what A commercial loan might look like? I'm really only interested in small multi family properties right now. It just seems as though everyone is trying to be sneaky when there should just be a very reasonable way to finance the property, have it in an LLC and still have you be responsible for the loan.… I was just listening to a BiggerPockets episode where they mentioned something called recourse loans. Is this something that could be used to avoid this situation?

That doesn't make any sense. Are you telling me that thousands of people on this site put property in LLC's and just pray they don't find out? That sounds ridiculous. If that is true why would anyone ever Invest? How often do these loans get called back because of that?

How do you guys usually go about making sure your lender doesn't have a problem with you transferring a property into an LLC or other entity? From what I understand this usually is never really a problem but is there some way you can do it safely such as getting some sort of written letter of consent from them?

Ok so hear is the deal. 4 plea for $130,000 Mortgage per month with 15% down = $522 Property taxes monthly = $75 Insurance monthly (estimated) = $200 TOTAL = $797 4 Units currently renting for $350 per month Net operating income = $1400 Account for vacancy, maint and cap ex 1400 x .75 = $1050 MONTHLY INCOME = $253 Now hears the deal. The market rent in this area for these types of apartments SHOULD be $425! So I'm thinking that It is a good buy and that it will cash flow nicely when I up the rents to were they should be. Any advise will be much appreciated. Thanks!

Thanks for the advise. My problem is that I live an hours away from any town I would invest in because I personally live in a very rural area.

Hey guys so I am wondering how submitting offers works. I know that I will get lots of offers turned down because they are of course lowballs, But if I find a property and make an offer should I have seen it first? I obviously will want to see it before I commit to buy but I can not go see every house before I make an offer If 99% will get rejected.

So do I make an offer based upon my calculations of what I am willing to pay with the contingency that I inspect the property before we close? If so at what point is earnest money involved and do I get it back if it does not pass my inspection as long as its in the contract?

Any advise would be great guys thank you for your valuable input!

So what does the typical commercial loan look like? How much do they usually want down? What kind of interest rates are typical? how long is the average loan term?