All Forum Posts by: JD Morris

I paid cash for a home in my the name of my LLC. I'm going to use zero interest credit cards and my HELOC to rehab it. I want to refinance into a traditional mortgage in order to pay off my cards and HELOC and go after the next house. I've been told by a mortgage broker that I won't be able to get a traditional mortgage in the name of my LLC. It has to be a personal loan.

Is there a way to refinance and keep the home in my LLC and not my name?

If I put the loan in my name, would that be considered a sale? In other words, would my LLC have to pay capital gains tax?

How do people normally use the BRRRR strategy? Do you normally just put the properties in your name to begin with?

Hey Caleb, there’s a meeting at Denny’s on Reidville Rd at the I-26 exit on Wednesday mornings at 7:30. Lots of wisdom and experience. It’s open to anyone. I highly recommend checking it out.

I can’t give you advice from experience. I’m in same boat as you and in the same market. But I’ve got some wise, experienced investors around me reminding me to be patient and not jump into something that’s not a deal just to get a property. But when a deal does come, don’t be afraid to go after it. That’s what I’m trying to do right now. Good luck!

For the record, these homes I'm finding are not in parks.  They're just on their own piece of land.  Thanks everyone for your replies.  I'm not sure why I didn't get notified... I'll adjust my settings so I can reply faster.

Originally posted by @Rachel H.:

@JD Morris Try 21st Mortgage or a local credit union. Otherwise, you can always try private lenders (usually best with those experienced and know the asset class). Good luck! 

Thank you!  21st Mortgage seems like they might be the place to go.  They at least have given me hope initially.  

I'm finding a lot of deals on mobile homes in my area, Spartanburg, SC, but I can't find a local bank who will offer refinancing to an investor on mobile homes. My current goal is to use my HELOC to pay cash and fix one up and then use the BRRRR strategy and refi so I can get my HELOC back. Is there anywhere else I can look to try to refi once I fix it up and rent it out?

I’ve been practicing analyzing properties with hopes of buying my first one in the next month or so. When I analyze properties, I account for vacancy, maintenance and cap ex (along with all the other expenses) but here’s my question: Where does that money go? Does it fall on me to separate that money out and hold on to it each month in order to save for those expenses? Or would that management company do that for me and then send me what’s left over each month? If it’s up to me, do you recommend setting up a separate savings account to hold that money in and separate it from my actual income?

I’m brand new so keep that in mind while reading this... but based on all those numbers it looks like a great deal. Why are you lowering vacancy, management,maintenance and cap ex? Is that based on research for Spartanburg and that property? I have been assuming 10% for those categories when I analyze properties. When you bump those to 10% cash flow is in the red.

Originally posted by @Anna Buffkin:

Hi @JD Morris!

I'm just down Hwy 25 in Greenwood, SC!  My husband and I were just discussing this when talking about our 2018 plans.  We are trying to decide whether sit out and build up cash or purchase more in 2018.  I think we decided to meet in the middle and pay down our line of credit for a few months and then reevaluate unless something falls in our lap.  I always keep a good reserve in the bank which we do not touch for safety and piece of mind.  

 Thanks Anna!  Looks like you're doing exactly what I want to do and our goals are pretty much the same! 

Thanks everyone! You’ve helped me out a ton. I have been thinking about using a HELOC to help me get started. That seems like the best option for us right now as opposed to moving our family around town every year or two.