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All Forum Posts by: Hunter Hughes

Hunter Hughes has started 2 posts and replied 5 times.

Post: Cars - Pay Cash or Finance & Invest?

Hunter HughesPosted
  • Accountant
  • Denver, CO
  • Posts 5
  • Votes 3

Ah, many factors at work here.

If you would feel more comfortablly refinancing, your credit should obviously have an impact on your decision. Will you get a great interest rate? will having a car loan help or hurt your home buying potential? but remember, always pay your bills on time (just one more thing to have to worry about)

Personally, I would recomend looking for a car deal in the same way you should be looking for a property deal. don't just look for a good deal, go for THE incredible deal. For example, my wife and I just bought a 1999 Volvo C70 with 27,000 miles for $2,700. We put another $2,000 in for repairs and we are running beautifullly. thats $5,300 less than what you are looking at and it still gets from point A to point wherever. Seriously consider a cheeper vehicle option if you want to invest more money into cash flow generating property.

Just a thought.

Hunter Hughes

I work at a mortgage lending bank. I agree, an LLC is one of the best ways to hold a rentable asset. That said, banks sometimes make leding to the LLC a little more tricky than to individuals. Sometimes business returns are requested for a holding LLC. however, the key is simply to ask your lender these questions upfront to best understand the lending scenarios for each option. Sorry for the generic answer, but this is what I have observed.

Post: Things to consider when starting a holding LLC

Hunter HughesPosted
  • Accountant
  • Denver, CO
  • Posts 5
  • Votes 3

Here is the scenario:

I am looking to buy an investment property in small town, Colorado. The property has 26 rentable units (14 trailers, 8 units in a single stick built structure, and 3 RV spot rentals) The asking price is $250,000, OBO. Zoned Commercial. Having a tough time getting a loan on it because the historical financial statements are accounted for incorrectly and show low NI. I have a partner interested in investing cash for a down payment or potentially the full purchase price.

OK,

To start an LLC or not start an LLC..., Obviously start the LLC. The true question is, what are the most important articles to include in the creation/structuring of the LLC. Since LLCs can be structured any number of ways the creators chose, I need to know what items are most important to include to: 1. protect against personal liability 2. satisfy the capital investing partner 3. set expectations of all partners.

I have created one LLC in the past for a product retail company with three partners.

Thank you for any experience that can be shared on this topic. Really looking forward to my first multifamily investment property.

With Enthusiasm,

I really appreciate the direct responses. That helps! 

Hello Forum,

I am currently working on a deal for a Colorado property that by most common sense would appear to be residential. It has 26 units (Apartments & Trailers) on the 1.68 acre lot. However, the MLS indicates that it is zoned "Commercial."

I would prefer to get a residential mortgage loan on the property because of favorable interest rates. Plus the bank I work at only funds conventional mortgages. If I borrow from my bank, I can achieve better rates and reduced closing costs. WIN!

How should I proceed? Should I work to get the property rezoned? Must I look into a commercial property loan with another lender? What more can I do to enhance the financing on this deal?

Thank you!