All Forum Posts by: Dustin Tucker

1st I'm not an attorney, so I can't give advice, but if I was you, I would form my LLC in Nevada or Wyoming, I would want to form my LLC in a state where there is not tax on the LLC. You can register any State's LLC in any other state with a foreign Entity Registration with the state you want to do business in.

If you get a HELOC on your personal residence couldn't you claim the interest on against your personal income taxes?

Also, for purchasing your rental property you can get 80% financing very easily with no Tax Returns via a DSCR loan, depending on your credit, and Down payment, you could see rates from 5.99-8.99%. Personally, I really like the BRRR (Buy, Fix, Rent, Refinance Repeat) model, which is to buy a property fix it up, rent it out and refinance it and do another one. This accomplishes 2 things, 1 you are gaining instant equity, 20-30% each time you complete the process. 2. Financing for 1-4 units is saturated, and there are hundreds of lenders in that market. Once you get into the 5+ unit properties, the lending market evaporates, there are very few lenders in this market and the rates are 1-1.5 higher than in the 1-4 unit market, if you are thinking bigger, the 10+ unit financing is best case 65% LTV, where the 1-4 unit market is 80% LTV for Stabilized rent ready properties, and if you are buying a fixer upper you can usually get 90% of purchase and 100% of rehab. Hope this helps.

Hello Jack, it seems like you pulled a warren buffet and beat the market, From my perspective I am seeing foreclosures on Multi Family at record levels, and the lenders for those larger projects have cut their lines and left.  I think that you are going to have to look at smaller markets, and also consider the option of converting office into apartments.  I think financial services was probably one of the largest users of office space, and I'm seeing more and more groups go remote.  To answer your question, I have a client looking for Georgia, and Florida, and East Cost for Apartments.  I also built a house for a Lifestyle's Unlimited Investor, and they were investing Midwest, and Texas.

Hello Joelle, What are the laws like for landlords, how long does it take for an eviction to take place? Could you explain that process?

Hello Rick, I've only come across 1 company to do 2nd position DSCR Loans, here is his contact info.

Erik Estrada

LuxePrivate Investments LLC

Loan Originator, Owner

DRE 02161719 | NMLS 2289340

Direct: 818.269.7983

W:https://luxeprivateinvestmentsllc.com/

Schedule: https://calendly.com/erik-dra

Hello Patrick, from my experience as a lender in the current market there is an abundance of financing available for 1-4 units, on Fix and Flip, New Construction and Rental market. I think that compared to 10 years ago, the financing is more aggressive, and there is more competition. You may already know this but as a good rule of thumb if Property purchase price plus rehab is less than or equal to 70% of the After repaired value you are going to be a winner 9/10 times. The other important item to consider is keeping your Credit score above 680, this gives you the opportunity to refinance without tax returns into a 30 year fixed rate Rental Loan, or DSCR Loan. The rates on those are between 5.99-8.99% depending on loan to value, fico score, and investor experience. Hope this helps.

Hello Chris,

If I were you I would do the following:

1. Check the Secretary of state for company good standing, and determine years in business ETC, who are the actual owners.

2. Request 3 months of bank statements from the company to verify active income.

3. Does the company requesting the lease work for a hospital? I would find out their affiliation to the area.

4. I agree with you to put a clause in for the specific tenants, I wouldn't make it mutual, I would make it at the landlord's discretion, and require a background check submitted for any occupants over 18 years of age.

5. I agree with you I would have the actual physical occupants do a background check.

6. Who is guaranteeing the lease? Whether a lease is corporate or not, usually there is a personal guarantor to the lease, this way you have somebody to check their credit.

7. If all the above checks out, I'm not sure if I would ask for 1.5-2x Deposit, I would think this is more of a gut feel decision at reviewing all the documentation.

Hope this helps.

Hello Chad, Unless this property is in the 100 year floodplain, the Detention pond lots are usually the premium lots in the neighborhood.  From my experience buyers typically prefer these lots because they will not have any neighbors directly behind them.

I can't tell from your question if there is an existing house built, that you are purchasing, or if you are buying a lot and going to build on it.

Also, you should have access to an interactive flood plain viewer to look where the 100, 500 and zone X for the flood plain are situated. Hope this helps.

Hello Kelly, You might be surprised, but you can actually get an Bed and Breakfast loan with the SBA 7a Program. I know it can be hard to get rural loans unless you are using a local bank or credit union.  The advantage of the SBA 7a Program is that you can get up to 90% financing.

I don't believe that you will have to pay off the mortgage to get the property replatted.  Just a thought, I would do all the work for platting, and then when the plat is ready to be filed, refinance the property for your primary residence so the new lots are owned free and clear.

You can replat with a loan in place, the lender just has to sign the plat for it to be approved, in your situation, the loan amount would apply to each parcel.

Hello Matt, are you only doing prefab wall panels, where they are assembled before delivery, or are you going to the next level with a full Prefab modular construction, where the units are completed at a factory and relatively minimal work is completed on site.

One issue I have heard on the modular construction is the manufactures are sold out for this year.

You might want to check out

www.VuhausLLC.com/models they are doing high end modular construction.