All Forum Posts by: Gina Shumway

I personally do excel spreadsheets and also have Stessa to track my transactions. That tends to work well. As far as balances on mortgages...I prefer not to look. Hahaha. I make sure they are paid and continue to move forward. Except at tax time and when I'm considering a possible 1031 etc to tap into the amount of equity I have.

Quote from @Tinia James:

Thank you! 
That’s what I thought just needed to make sure.👍🏽 

 I agree with above. I would say that I recommend getting an umbrella policy just to cover yourself for liability purposes/reasons. 

Quote from @Kevin Luttrell:

Quote from @Gina Shumway:

Quote from @Kevin Luttrell:

Nice job! I'd love to hear more about this. What are the numbers you're looking at for this project? 

Hi friend!!
    I got this project off market from a connection of mine (I'm a realtor/investor). I got an appraisal prior to starting and my numbers looks like this 

PP: 137k
Closing costs:5k
Renovation: 230k
projected holding costs: 26k
ARV: 620-650K
Estimated rents: conservatively--> $4400/month. I actually hope to get closer to $5000/month.

 Wow, that's fantastic. Way to get creative and think outside the box with converting a warehouse to a multi-unit! 

What does the permitting process look like and getting the zoning changed? 

 This property is literally on the Sequatchie County/Hamilton County border. I love it because there are no zoning restrictions in Sequatchie county (as opposed to Hamilton), so I didn't have to seek approval for that. As far as permitting, only septic is required. That being said, I am getting inspections of all major systems to ensure quality as this will be a hold for me (I would do it anyway, my name is on it). And even better, it's about half a mile from neighborhoods with $800,000+ homes and there are virtually no rentals in the area so should do well! 

Quote from @Kevin Luttrell:

Nice job! I'd love to hear more about this. What are the numbers you're looking at for this project? 

Hi friend!!
    I got this project off market from a connection of mine (I'm a realtor/investor). I got an appraisal prior to starting and my numbers looks like this 

PP: 137k
Closing costs:5k
Renovation: 230k
projected holding costs: 26k
ARV: 620-650K
Estimated rents: conservatively--> $4400/month. I actually hope to get closer to $5000/month.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

I am taking what was once an industrial warehouse and converting into a quadruplex on signal mountain.

Quote from @Jay Hurst:

Quote from @Gina Shumway:

I am set to close on a BRRRR property with a series LLC on 4/17/2023 (with cash). Our LLC funds all the Renovations in cash as well. This is our second BRRRR property. Renovations should be done in 4-6 weeks.

I am searching for lenders on a cash out refinance. I'm really hoping for 80% LTV. Since it's an LLC I assume we can only get a DSCR loan. Our first loan did not have a seasoning period, which was wonderful. I would love that bonus again if possible. If you are a lender who could help me with this, please contact me.

 @Gina Shumway   I assume the  property in in TN?

Yes!!! I apologize!! 

I am set to close on a BRRRR property with a series LLC on 4/17/2023 (with cash). Our LLC funds all the Renovations in cash as well. This is our second BRRRR property. Renovations should be done in 4-6 weeks.

This property is in chattanooga TN.

I am searching for lenders on a cash out refinance. I'm really hoping for 80% LTV. Since it's an LLC I assume we can only get a DSCR loan. Our first loan did not have a seasoning period, which was wonderful. I would love that bonus again if possible. If you are a lender who could help me with this, please contact me.

Quote from @Charles Carillo:

@Gina Shumway

You want to be careful when you call an investor/partner a "passive investor;" that gets into the grey area of creating a security.

Instead of setting up new partnerships; it might be easier and cleaner (especially during tax time) to bring these JV partners in as private lenders. You then can have one LLC for yourself (that buys the property) and then the private lender would provide all of the funds (as they have before) but they are getting a set interest rate (paid monthly or when you sell), while also having a mortgage against the property. It is safer for the lender and if after one deal, it is not a good fit, you do not need to close a partnership, pay taxes and pay an accountant; you just move on with another private lender for your next deal.

I feel it is much easier to scale using the private lender model. It also is easier to work with new lenders that might not know you as well. They are making a secured investment/loan.

Shoot! Thank you for helping me with terminology. I simply meant to say they strictly invested money and I did all the "work". I will not use that term again. Thank you. 

I will look into this model. So in my holding costs, do I add repayment? If I were to do that I think when I refinance I would rather give them all their money back with interest so I own the property outright. In my first, there was no payback. We all agreed to reinvest the money in the next home. I love that real estate is so diverse and creative, but also makes my brain hurt. Haha

My situation may be unique, but I would love people's opinion and insight. 

I created an LLC with 2 other partners last year and we successfully completed our first BRRR (technically close hopefully in a week) and will be get 100% of our investment back (yay!). My two partners were passive investors only. I found the deal, managed reno, found the lending, am managing renter/property etc. As soon as I receive the funds I hope to do this again. I am now trying to determine how best to proceed next.
On the first BRRR as an entity, we all put in capital to pay for the home purchase and reno in cash. The refinance is the only "lending" received. I understand that I can rinse and repeat doing one house individually, but would really like to do two homes at a time. Should I 

A) Break our capital into two and do two down payments, get hard money loan to make up the difference, and then refinance once completed? This would allow me to do 2 homes simultaneously

B) Find more investors and create a separate entity. I do NOT have the personal capital to invest in another home. I will not remove capital from my first LLC as I like the way it is set up as well as my percentage ownership etc. My question is--If I set up a separate LLC to BRR with someone else, what percent ownership should I offer my partner/s and myself? My role would be "sweat" equity with finding deal, purchasing, managing renovation, finding renter, refinancing etc.

Any thoughts appreciated

I am only a few short weeks away from completing my first BRRR! I am now on the search for a lender to refinance cash out. Some general info

Located in Chattanooga TN

My LLC owns the house outright (paid cash). Not sure if this is helpful to know.

If you know of a great lender that you have had the pleasure of working with, please send them my way or PM me their contact info. I greatly appreciate your help!

Gina Shumway