All Forum Posts by: Jerome Hanson

@Nick Thurston So hold on a sec. As I understand it, you are asking if the seller could carry your down payment as a loan, correct? If that is the case, then the answer to that question should be yes. There would be 2 liens.  That is actually pretty common, but you'd need to find a bank comfortable with that scenario. From what I hear, less of them are interested in having a 2nd lien on the property, especially seller carryback.

@Raj I. The issues I'm facing in refi under an LLC is that I can't find a bank that will do it yet. Haven't been searching that long so it's not a big deal for me yet. They state reasons of liability for not allowing their institutions to do those. Apparently something about the mortgage crisis few years back has the banks scared on this topic as well.

Yes I do have rentals in LLC's but for now I don't see too much benefit in doing that. I have my own personal reasons for doing so, but from a purely business standpoint, I don't think it makes that much of a difference. For asset protection, buy insurance no matter what.

Having a little trouble finding a lender/bank that's ok with refinancing a mortgage of LLC owned property. Have any of you found such an institution you can recommend? I'm looking at refinancing a couple in 6-12 months.

@Patricia K. I'm guessing the reason no one's replied here yet is because there's not much advice to give.  Seems like you already have the plan.  Now just call the banker/lender and tell them what you want to do... you'll have cash in no time so you can put money down on an investment property.

@Adam Reiman you'll be able to draw up your own purchase contract if you wish, but I'd just use a template from your local Realty agency (just don't use the realtor).  Fill it out and then take it to a title company or attorney (whatever is required in Georgia).  After the Title company sees your contract they'll basically take care of the rest.  But no, you can't get an owner finance done without using a title professional.  It is still the sale of real estate so it needs to go through official channels and get fully recorded, bla bla bla.  If you really wanna be sound... talk to your title agency before you do any of this and they may be able to walk you through their process.  Just tell them you have no interest in dealing with real estate agents. They'll understand.

@Paul Santos You can do all this yourself. The feds grant you an EIN number which will be necessary to get your bank account... business credit will be extended to you based off of the income/profit your business generates and that is bank specific so you'll have to talk to them about it (I don't worry about business credit because it's not my goal). I stand by my assertion that legal help is unnecessary in Arizona. I've sat down with an attorney who owns lots of real estate himself in Arizona and they basically told me it's a waste of time not only getting an LLC but to pay someone to do it for you. I had my own reasons for doing it so I took part of his advice and pressed on by establishing the LLC on my own. The operating agreement is not necessary to file in Arizona but it's good to have one to designate things like who has signature authority to purchase, sell, assign holdings of the LLC etc. You can find pretty good templates on the internet and take the time to tweak them to your liking, especially if your LLC is just for you and spouse. Operating agreements can be created and upgraded at any time because they are not filed with the ACC, they are for your personal filing and use.

Biggest thing I'd say is, don't count on the LLC to "protect" you in real estate... still get insurance.

@Rolanda Eldridge people like you motivate me.. people like you.

I agree with @Mark Allen here.  There's really no need for anything fancy here because he's already doing owner financing which accomplishes the goal of spreading out the gains.

Focus on the numbers. Knock $50 bucks from the rental income on your analysis because of the small yard and if it still works well, then go for it.  You're an investor, focus on the money.

@Justin Owens don't pay anyone to do this for you in Arizona.  Go to the Arizona Corporations Commission website and they've got everything you need.  You can even give them a call if you have serious questions, but the website is pretty thorough.