All Forum Posts by: Jean G.

Hello,

we have the opportunity to buy a relatively new home that would make a great rental through a subject-to transaction / wrap. The underlying note is a USDA loan at 3% interested.

The interesting part is that there is about $60k of equity in the home after paying the entry fee.

One of my title companies is refusing to insure the transaction due to the underlying lender being USDA, and telling me that it is a bad idea to do this on a USDA loan. I'm sure I can find a different title company that will insure if needed.

I am looking for feedback from people that buy a lot of subject-to properties. What do you do when the underlying lender is USDA? What is your ratio and timeframe, for the loan to be called? Do they always and all get called? Or do they only sometimes get called?

In our situation, if the loan gets called it doesn't seem like it would be a huge problem, as we could just pay it off and the list the property and get the equity (probably $30k to $40k after selling expenses, assuming the market hasn't dropped).

Thank you in advance for any feedback anyone is able to provide on the subject of a subject-to sale with a USDA loan.

Jean

Is there any new information available from people that were able to apply for a loan using Schedule E income or outgoing payments to 1099 contractors in lieu of payroll, with an entity that does not have any W2 employees?

I could not find any information that explicitely addresses this in round 2 of the PPP loan program that is starting today.

Jean

Hello,

I am looking for a contractor who specializes in refinishing wood flooring in the Las Vegas area, for a flip I am working on. Any recommendations will be appreciated. Of course I am looking to keep the cost down and need someone reliable.

Thank you!

Jean

Hello,

just wanted to chime in here as a bank (Wells Fargo) also once told me to file a DBA for each Serie, and that this was the proper way to open bank accounts for them. It turned into a big problem because the banker had in fact no idea what he was doing, opened the accounts as if they were partnerships and Wells compliance department ended up closing all my accounts with the district manager getting involved as well.

The way I am doing it now is by using a bank who understand Series LLC (US Bank). I get a separate EIN for each Serie (on the IRS website), US Bank opens the account with that EIN in the name of that Serie, and there is no DBA filing required with the County. Properties are titled in the name of the Serie (for example if my Master is "XYZ LLC" then one of my Series would be "ABC Series of XYZ LLC" and that's what I title the property into).

It is correct that there is no place where each LLC is recorded with the government in that scenario, but that is also an advantage if you need to quickly open a new Serie. As long as the IRS website will spit out an EIN (which it does during weekdays), the bank can open the account same day.

In my setup, the master owns each Serie so all revenue flows up to the top and we file a single tax return for the master, but it doesn't have to be done that way, you could for example have different owners in different Series and have them file taxes separately (which works since you have separate EINs, so as far as the IRS is concerned, they're all separate entities).

I hope this helps.

Jean

Hello,

is there an HOA, if so how much, and what's the age of the property?

Jean

Hello,

does anyone know of a service to mail out letters that will allow me to mail single letters without minimums? This would be for when I have some individual "driving for dollars" leads, as opposed to sending mail to entire lists.

I'm looking for a service where I can get envelopes with a handwritten font, a real stamp, and a business style letter with a typed font (not handwritten).

Thank you in advance if anyone knows of a supplier for this.

Jean

Thank you for the update!

Hello,

I came across this site online: https://www.residentialinvestorone.com/ and after I left my email address there, they keep emailing me trying to get me to signup.

They claim to be a "cooperative" where landlords join and supposedly get better prices from vendors. It sounds like a scam (like those buying clubs for homeowners), but they are waiving membership fees at the moment (to get more investors to signup presumably) and I was wondering if anyone had heard of this and had anything to say (good or bad)?

Jean

Hello,

I am trying to refinance 2 properties. One is a duplex in Pahrump, NV, the other one a single family in Fort Mohave, AZ. Both properties have tenants, are cash flowing, and somewhat seasoned (6 months). The loan amounts on both are around $100k (one slightly above and one slightly below).

I am looking for a 30y fixed type financing such as the "single asset loans" offered by niche lenders in the single family rental property space, people like B2RFinance/Dwell and Colony Capital who both offer simple 30y fixed loans on tenanted properties in the 7% range.

Unfortunately, my properties are somewhat outside of the major MSA (which would be Las Vegas), so Colony will not lend on either of them, and B2R will do the property in Pahrump, but only with a 60% LTV.

I was wondering if there are any other similar lenders out there that I could talk to? I'm waiting for a reply from Firstkey, but last time I asked they weren't lending in these states. I've also discovered LendingOne (Crestar) on BP, but they do not lend in these states either.

Any suggestions would be welcome. Note that I am not looking for short term hard money financing, but long term 30y fixed financing.

And if anyone will close this in a Series LLC, that's a bonus (B2R and Colony both won't do that).

Thank you!

Jean

+1 for Phone.com

They let you set the alphanumeric caller ID for your number to whatever you want it to be. You can also create auto attendants to make it look bigger than a 1 person company, and if you ever needed to port out your current cellphone number for any reason (the one that's with your employer) you can also port it there (temporarily or permanently).

Jean