All Forum Posts by: Jean G.

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

I don't have an answer to your question, but it's interesting that your lenders don't have problems with Series LLC. I remember having problems just finding a bank that would open a checking account for a Series LLC, so I figured I would post here what I found out in that regard (for Nevada anyway):

- Wells Fargo did not want Series LLC. In fact, they opened accounts for my Series LLC (after I disclosed multiple times that this was a Series and not a normal LLC) and about a month later made me close all of them! (after I had setup all the ACH and automatic payments..)

- Washington Federal does Series but they have a monthly fee on their accounts

- US Bank does Series and has a business checking account without any monthly fee or minimum balance requirement! (which is useful if you have a lot of Series)

Just thought this could be helpful for someone.

Jean

@Andre Wilson

I guess at very high level, this is what you need to know:

- "pre-foreclosure" is a home where a foreclosure has been filed (NOD) but it hasn't occured yet

- there is a time window, between the time the foreclosure has been filed, and when it actually occurs, where someone could step in and purchase the property from the homeowner, saving the homeowner from having a foreclosure on their record, paying off the bank, and possibly getting a great deal

- this only works if the homeowner owes less than the property is worth, otherwise it's not a good deal for the buyer

- as @Gary Parker mentioned, in some areas you may not be allowed to contact homeowners and offer "help".

Jean

... or you could signup as an investor with Lending Home (you need to be accredited) and buy their notes (on a fractional basis, so you can spread funds across as many notes as you want). It's as easy as ACHing your money to them and clicking the notes you want to buy. The interest varies between 7 and 16% depending on the risk of the property and the borrower.

They typically sell most of their notes to private equity in bulk, but have started to open up to individual investors as well.

Jean

@John Hill

Becca is right, MACU's 10% down portfolio loan is a great one, but only up to 4 units, max $425k loan amount and maximum 2 loans per borrower.

Washington Federal is also a great one, but I don't think they will do under 25% down.

You could try speaking to Velocity Commercial (Disclaimer: haven't used them yet). It will be expensive (like 8%ish) but they may operate like B2R and Colony in that they may go by LTV and not LTC, in which case you could somewhere if you're buying sufficiently below market.

Jean

@Brenda Whittaker

I use a Nevada Series LLC and place each property into a separate Serie, but it's a bit heavy. You need a separate bank account for each one, and separate accounting. Also you don't have AZ Series LLCs I believe, so you would need to maintain the LLC in NV and then qualify it to do business in AZ, which is also extra work.

You may want to separate your rentals from any flip activities, as the rental income needs to end up on your schedule E whereas the flip income ends up on schedule C and you need to pay self employment taxes on that.

If the flip income is enough to bother, you would setup the flip entity as an S corp, take about 30 to 50% (depending on how aggressive your CPA is) of the profits as W2 income (where you pay employment taxes) and the rest as a distribution on which you would not have to pay employment taxes (you will still pay income taxes on both).

Yes you can take money out with owner's draws (from the passive income entities), that's no problem, but I think there is a rule that you should not do it on a regular schedule (like every week or two) or it may be requalified as a salary. You'd need to confirm that with a CPA.

Obviously the entity would pay the properties' bills directly from its account, before you take any draws (not sure if that was one of your questions).

Oh and something else: if you re looking for loans for rentals (as opposed to short term money for flipping), Colony's new single asset loan can be taken in your personal name, without an entity (and no income required, which is what I think you're looking for. You do need good credit though).

Jean

@Thomas Bouchereau

since you are in Henderson, you may want to attend @Phillip Dwyer's Bigger Pockets Meetup this coming Tuesday. We would love to meet you. If your dad lives in the area, he is very welcome as well to share some of his experience with us.

Here is more information: https://www.biggerpockets.com/forums/521/topics/26...

Jean