All Forum Posts by: Tyler Willson

Hello everyone,

I am in the process of closing on my first deal. It is an all cash offer within my own family. The problem I am having is that I want to buy the house directly through my LLC, and I do not have capital for the rehab. As far as I can tell, my options are some sort of personal or project loan with a co-signer as I do not have an income (I am a student currently) with a refinance at a lower rate later, a personal loan with plans to sell the property ASAP, or sell it without any rehab done for a lower price of course.

I would like this to be a BRRR, but I am unsure how this works whenever the property is held by an LLC. Currently, I am looking into the project financing that Lowe's and Home Depot offer as well as numerous personal loan platforms. With this being my first deal, it is hard to do with no track record.

I am really interested in the refinancing when property is held in an LLC aspect and if you can even get small business loans or project loans through an LLC that has no history of revenue generation. Any advice is appreciated!

Thank you

@Taylor L. It is currently zoned as R-4. It looks like I would need to get it rezoned for R-5A or R-6 if I wanted it to be a duplex legally. That could be slightly problematic because the point of R-4 zoning is to cut down on population density. Any thoughts on the process of getting it changed?

I do not have experience in the Richmond area, in fact I have experience no where. This would be my first deal, and the only reason I chose out of area is because it is coming from family. They have other rentals in the area; however, this property needs significant rehab, and they do not currently have the time or money for that. Also, that's my bad on choosing the wrong thread. Sorry about that.

Thank you for the resources; they helped for sure.

Hello all, I came across this thread trying to find out if there was any need for rezoning in Richmond when trying to convert a SF to MF. Is there anything you actually need to do for this type of conversion? I'm looking at a 4/2 in the McGuire neighborhood, south of the city. I was thinking I could get $800 as SF and $1000 as MF in that area.

@Matthew Maggy I was looking at that tax abatement program and it requires active building permits at the time of the application. I was trying to figure out if I would actually need a building permit for the work I need done. Is it pretty typical that a big repair/rehab needs one in Richmond?

Thank you @Jeff Greenberg for your input. I figured that would be the most important aspect in the grand scheme of things.

Thank you @Chris K. for the advice. Thankfully, my home state and real estate state are the same for now. I'm not sure if I will ever scale up quite as much as you described, but it is good to keep in mind.

Side note - I always get a little kick out of all the disclaimers by the lawyers and tax professionals on the site and the BP podcasts. I know it is necessary, but I wish it wasn't. I feel like we live in such a "sue-happy" society sometimes.

Thanks @Matt Clark. I will certainly keep that in mind. I do need to think about where I plan on investing in the future. This first deal is unusual because it is coming from family. I'm a medical student, and I am not sure whether or not I will still be in Roanoke in a few years. It makes that aspect of planning a little more difficult.

Thank you, @Charlie MacPherson. That was my thought as well.

Hi all,

I am based in Roanoke, and I am about to do my first deal in Richmond, VA with some family. Would it be wiser to meet with a lawyer closer to myself or Roanoke or one that is based in Richmond? I want to meet with a lawyer in order to go over any weird tenancy laws VA might have, types of insurance and if I need certain types, and talk about setting up an LLC.

Thanks for any help!

@Matthew Maggy Thank you for the input, especially about the need for more CapEx. That is definitely worth putting into a new analysis. If I were not to go the Section 8 route, do you have an idea about how much less I would need to go for rent in that area?

I feel like as long as you can find a decent property management company; you could do a buy and hold instead of a flip. I don't have any experience with this, but after listening to many podcast and reading a lot, I feel that most of the work goes in during the rehab process with getting your team in place and taking action. If you get through that, then you either need to find a good realtor to sell or a property manager to rent it out. I think you could go either way depending on what your goals are.