All Forum Posts by: Jason Morris

@Mathew Davis

I live in the Philadelphia area and we invest in properties in other areas/states that are better cash flow for us. 

Good cash flows states to look into: Carolinas, PA, TX, Midwest states (OH, IN, etc)

I have had up to 100 single-family units and never used an LLC. Waste of money. Sorry. LLC's are for apartment complexes. Just make sure you have $300,000 or more liability on each house and a $1 million umbrellas policy.

Hello everyone,

I am currently looking at a property in Philadelphia which is FSBO. I do not have any experience with FSBO's. We have met with the guy at the showing of the property and we got along very well we have a lot in common and he defiantly like us. We are working on getting pre approved this Monday. I am asking for some help on how to go about negotiating with him. We have been talking via text message. Do I negotiate through text or is that something to be done in person? Do I wait until the pre approval is done? Any advice helps!

Thank you

@Christopher Ade Quite likely their concern is just your ability to meet the occupancy requirement for the FHA loan.

Some info from FHA that might help...

https://www.fha.com/fha_article?id=1870

I would think this is the reason. Your employer is out of state so there may be concerns you wont be living there and may be using it as an investment property.

@Jason Morris I would probably guide you here that the answer to that question should really come from an attorney.  I have heard some people say use the LLC.  I've heard some people say, put it in a land trust.  I heard some say, get good insurance. There's other strategies too. So I don't think we can say what is the "right" method to do here but if you want to change to your LLC, then there's not really an issue in doing so from the loan standpoint. That's kind of the point to this post. Hope that helps.

I'll second @Andrew Postell's advice. We are closing on a rental right now, 30yr conventional investment mortgage. Lender has said that earlier in the year, federal regulations were passed that won't allow you to get a conforming mortgage in the name of an LLC. You would have to a apply for and close the loan in your name, agreeing to be personally liable for the debt service. After closing, quitclaim deed to an LLC (if you feel it's necessary). That will change the title to the LLC, but you are still personally named on the mortgage.