All Forum Posts by: Jacob A.

To answer some of the questions, yes he definitely wants to partner up and I made the suggestion already which I’m hindsight was probably too soon so suggest it. Yes, he has lots of experience building houses. He has his own company and that’s what he does, so he’s not just Uncle Rico that can swing a hammer 🤣

I suppose I can ask him for a price for just hiring his company but he’ll likely be disappointed with that request at this point because he sees the value of the partnership on this one.

If I was to partner with him, I should bring him in on the ground level and create a new LLC with both of us as managing members I think.

Trying to figure out the best way to go about this…

I have a property under contract. It’s a dilapidated house that’s too far gone. It’s 100% a tear down. I’m thinking of partnering with my uncle who’s a GC.

Should I buy the lot by myself, and split the building costs? Should I ask him to front the building costs until we close? Should we buy the lot together and split everything 50/50? This 50/50 scenario does sound like it’s the cleanest way to do it and I’m not opposed to it. I just haven’t thought about it until now. Thinking about holding costs, and accounting at the end of the year, etc. i certainly don’t want to be in a position where I split everything down the middle but get stuck holding the bag on taxes.

I’m liquid enough to handle it all on my own. I’m just not sure I want to. I’d like to present it as fair as possible, but at the same time this is a property that I prospected for over the course of 6 years. (For once my follow-up game was on point.)

I’ve done a few flips before with partners but we’ve bought them together and sold them together. I’ve never done a new build and never really had a scenario where I was in a position to buy it on my own.

Just looking for some advice/suggestions on best way to go about this.

Originally posted by @Camille T.:

I asked Bank of America about later transferring to an LLC and the response was: "just don't tell us that's what you're doing."

 Haha...that seems to be the common theme with all the banks. 

Originally posted by @Jay Murakami:

HI, have an update for this thread?  

I did transfer to the LLC. I did not write the letter. I instead opted to keep it quiet based on some other advice I got from other investors. No due on transfer has been invoked. It's been over a year since the transfer. From speaking to other investors at my local landlord meetup, apparently these type of transfers happen all the time, and typically don't cause any problem, but it's still always a possibility. I dealt with a local bank with in house servicing. I let them know my intent and although they never gave me the bank's "blessing", it seems to all be fine.

I find that existing tenants are usually expecting the new landlord to increase the rent. They’ve already mentally prepared themselves for it. I agree that now is the best time to do it. If the unit is in a desirable area and in halfway decent shape then most people would rather just pay the increase at a place they’re already comfortable, rather than having to deal with the hassle of searching for a new place and moving.

Hi all, I'm fairly new here, although I've lurked on the site for a while.  I've recently become addicted to the Podcasts and listen to about 2 a day. I'll be caught up in no time! Just wanted to formally introduce myself and per suggestion of the Podcasts - would like to get more involved in the forums. I'm from the SouthCoast area of Massachusetts and I'm interested in multi-family investment properties, and potential flip opportunities mainly in the greater New Bedford/Fall River area. I've been a landlord for approximately 15 years. Purchased my first triple decker from a family member when I was 21, then 5-6 years later I purchased a 6 family. Bought the 6 family at a bad time (early 2007), paid too much, and it needed too much, but somehow it seemed like a good idea at the time! I made a lot of mistakes but learned a ton. I was able to hang onto the 6 family, put a little work into it and just recently sold it back in November. I also sold that 1st triple decker this past January and did a 1031 exchange into a bigger/better/nicer neighborhood triple decker. So, I'm still a small time landlord/investor with only 1 rental property right now, but looking to expand, armed with the info of BP, and my 15 years of knowledge/experience. So....hi everyone!

Hi everyone, I have a question about apartment sized space heaters. In my local area we have a ton of triple deckers and I would say about 85% of them still have these bulky very non energy efficient natural gas space heaters that are used to heat the entire apartment. I try to shy away from houses that have them because they're dangerous and I think it's only a matter of time before landlords are forced to convert them. If going through a total rehab, then it's no big deal and a no brainer to just replace them with a new heating system, but how about a house that is in good condition but has a space heater on the 2nd or third floor? What are the replacement options for that without having to rip open walls on the floors below them, etc. 

To heat a large 3br apartment, electric heat would be really expensive, and those ductless wall systems I hear require a lot of upkeep/maintenance which I can't depend on tenants to do and would prefer not to have to be there once a month to maintain myself. 

Anyone know of other options for replacements of these heaters? 

So I just spoke to the bank and they said their corporate attorneys will NOT write me the letter (shocker). I also confirmed that the loan is 100% serviced in house, and the loan officer did mention that investors transfer property into their LLC's all the time, they're well aware of it, but I will not get the bank's blessing on it. She suggested that I write my own letter stating that I will close this property in my personal name, but intend to later transfer to my LLC. This letter will go into my file. Not sure if that really does me any good, but at least it'll be on file. She then went on to say that she's been at this (local) bank for 7 years, and worked for BofA for 15 years before that and has NEVER seen a loan get called due to a transfer. I told her I'm the type of guy that will probably change that, and she said the worst case scenario is that if or when that ever happens to just transfer it back into my personal name.

Some good info here. First things first, I'll find out if my mortgage does or doesn't have a "due on sale" clause. 

I believe the owner of the loan and servicer of the loan will be the same. It's an in-house product that they service themselves. 

Hi all, I know this has been covered several time, but I think this is somewhat unique so I created a new topic. I'm in the process of buying a multi-family (3 unit) property. I'm taking title to the property in my name, but when I initially spoke to the bank that's financing this property, I told them that I have an existing LLC, and would like to transfer the property to the LLC at closing. I also mentioned that I would like some sort of confirmation from the bank that doing so will not invoke the due on transfer clause. Of course the bank told me that shouldn't be a problem but as the closing date draws near, I still don't have anything from them confirming it. I've asked for it several times, and at this point I feel like I'm getting the run around from them. The loan officer says her office is passing it through their corporate attorney to see if they'll allow the letter. I won't really feel comfortable unless I have that confirmation from the bank. Any suggestions?