All Forum Posts by: Dustin Beam

I'll be following this thread as well. After listening to Podcast 109, I'm looking into setting up the appropriate Series LLC or Controlling /Holding LLC.

Free bump.

What do you lose if you call to get more inof?

@Mansoor Fazel 

Sure, just want you to know in case you're looking into specifics from state to state. Good luck with your search.

@Mansoor Fazel Only because you mentioned "KS" twice, be aware that Kansas City spans across state lines. Or rather, there's a KCK and a KCMO plus adjoining suburbs. Only a friendly FYI in case you're looking into state specific legality type things.

@Steve Ipock , I will definitely do that!

Kidding, I know it has. I read through tons of threads about this, but the problem for me was I didn't come across one for Missouri. And from what I've gathered, the transaction paperwork can be very state specific.

Back story: There are 3 fourplex building I plan to purchase. This will be a difficult deal for me to swing with out of pocket cash, so to minimize, I plan to purchase 1 under traditional 30 year fixed loan (25% down), and the other 2 under commercial loans (20% down) and then refinance at a later date to traditional loan.

The bank has seen the seller's financials, everything looks good. I should have all my down payment money, reserves, etc. So should be good there. Price is somewhat agreed upon with seller. I'm going to see if I can pay a couple thousand more per building if he will pay my closing costs in order to keep my out of pocket expenses down.

So a Purchase and Sale document seems to be in order. It seems the seller giving me $6k towards my closing costs would be an addendum. Not sure what else I need. Feeling a little (a lot) overwhelmed by the process. Called a real estate attorney and he said he would charge around $3k or more for the ordeal. Well like I said, I'm trying to keep my out of pocket money down.

So if you're still with me, to the point. Does anyone have an attorney they could recommend for this (I'm in the KC area)? I've seen people saying the whole process could be done for $500 for lawyers in different areas. Or, does anyone have Missouri specific P&S document and addendum link I could take a look at?

Any advice or help is surely welcome.

Thanks,

Dustin

(that was longer than I anticipated)

We were speaking somewhat generally during our first where i said I was interested in anything from a duplex to apartment buildings. 

At one point I said I was specifically interested in an 8plex. I don't think he caught that. So when we spoke again, and i repeated that info, he said it would need to be commercial and that he would have the commercial loan officer call me. 

Once I spoke with the other guy, he explained that it would be a 5 year ARM ammortized over 25 years. So basically the interest rate just gets adjusted every 5. I can't say i like it, but it is less scary than before.

I had a conversation w/ my bank, and he certainly alleviated some of my concerns. Looks like no additional fees are associated w/ the "refinance". It sounds like it's basically a look-in for the bank and a re-adjustment of the interest rates. Doesn't mean I'd be excited about a higher payment, but for reasons like @Account Closed pointed out, I should be ok. 

Thanks for the help, guys. Still trying to work my way through this.

@AJ Minaker, isn't it serious though? You make good points, as it's quite believable that plans do have unexpected things arise. I'm taking an absolute wild guess at what refinancing would cost, but for easy numbers, let's say $5k. That's 1000/year. Then if you add 1.5% to my rate (conceivable, could be more) in 5 years, that's another $100/month for the loan I'm looking to get. That's almost $200/mo. I guess that's why people want 4plexes. haha

Sounds like from what I've been told so far, serial refinancing would be the situation. Talk about taking the excitement out of this potential deal. That is a serious issue.