All Forum Posts by: Joe Campbell

@Charles Kao I heard your podcast last week and was wondering if I knew you as well.  I'm from Grand Haven too.

Thanks for all your input everyone, I've got some good leads now to work on.  I'm going to contact LMCU start there.

Thank you @Chris M.

Its currently held in an LLC, so you are suggesting to move title noe into our name, apply for a a residential refinance in our name, then switch it back to an LLC once the loan closes? Or can we hold title in the LLC until the day of closing? just want to clarify thank you

I am literally at a dead end here and I am wondering if BP members have come across a similar situation to this....

Myself and another investor own 2 properties, paid in full.  One has a value of approximately 110k and the other 70k.  They are cash flowing nicely as rentals but we want to tap that equity to use as a down payment on our first 4 plex.

We have talked with several residential lenders and since the properties are held in an LLC they won't do a refi. They advised us to go to a commercial lender like a bank. We went to Chase and they stated they do not offer any type of loan for a situation like this.

Help!  Where do we go from here?

Thanks for your analysis @Aaron Montague that helps alot.  I spoke with the client and it turns out he is wanting 6% on seller finance and min of 20% down so according to your calculations I would have to buy for less thank 60k....I'm sure he won't go for that but I'll at least give it a shot!

@Aaron Montague 

Taxes  $100/mo

Sewer and Water (assuming paid by tenant)  $100/yr, rest paid by tenant.

Trash (assuming paid by tenant)  $100/yr, rest paid by tenant

Heat/Utilities (assuming paid by tenant)  $100/year, rest paid by tenant

HOA (n/a?) None

Cap Ex and Ops (my personal minimum is $150/roof/month)  Sounds about right.

Insurance  $75/month

Mgmt Fee - as a % (general consensus here on BP is 10%. include it even if you think you are going to self manage)  I would self manage but was still should figure in.

Vacancy- as a %. (8% represents 1 vacant month/unit/year)  I want to figure in 2 vacant months/year to be safe.

@Aaron Montague Sorry I may have not been clear. I meant that that 115k would be his asking price if he listed on MLS with a realtor AFTER he spent 10k on repairs. After comissions and his repair cost the most he would walk away with is around $93k.

My thought is to offer him 80k seller finance.  With rent at 950/80000, this puts me at 1.1%

Hello BP!  I came across a possible deal I'm trying to work a proposal for the current homeowner and I need help presenting a win-win deal.

The owner is selling because his mother in-law lived in the home and has passed. They purchased in 1999 for 75k and have a mortgage balance of 50k. The current owner was thinking of putting in about 10k and trying to sell for 115k which is FMV based on comps of recent sales.

He is willing to do seller finance and sell directly to me without going through a realtor but I don't know the best way to structure an offer.  My ultimate goal is to buy it and rent it out, should fetch $950/month.

My question to the board is what type of offer is the best to present to him with seller financing.  I have about 20k cash I could put down.

Thank you all for your suggestions!  

@Hattie Dizmond I wanted to keep the properties at this point because they are cash flowing well and in an area where I should see appreciation so I want to hold them for now.

I think I'm going to follow @Mehran K. advice here, I just need to find a commercial lender who will do a blanket loan involving 2 different LLC's and only a 100k value....probably not an easy task. I will most likely use that money as a down payment on another single family rental here in Phoenix where I can manage it myself.

My question the community is this, if I get the cash out with this blanked loan, say 70k I'm going to have to qualify in my own name and then transfer the title over to an LLC for protection....is this what people usually do?

I'm looking for a little guidance on where to go next in my investing portfolio.  A little about where I'm at:

1. I own 3 single family home rentals in Western MI, paid $35k cash for each, they are cash flowing about $5000/year each and current value is around 50k each. They are owned in separate LLC's (single owner) so I cannot refinance them and cash out without putting them in my name.

2. My primary residence is mortgaged at 205k and its worth about 300k. I have a HELOC on that with 45k available as needed.

3.  I currently have zero CC or Auto Debt.  Credit is about 740.  Only about 5k in savings currently.

My ultimate goal is to get to a total of $6000 in cash flowing properties per month.  

My question to the forum is what should I do next? I was thinking of applying for a new mortgage, purchasing a fixer upper here in Phoenix, then use part of the HELOC to pay the down payment as well as do repairs. After that I would rent it out and refinance it to get my cash back. Rinse and repeat.

What recommendations does the forum have?