All Forum Posts by: Jeffrey Giffin

David Dachtera very interesting approach, one I've wondered about. Any chance you have some links to share that can help me research how to leverage retirement funds for REI investment?

Welcome to BP, Tom! Your question to David really needs to be in another thread, you can start one. We really need to stay on topic for the OP. BP forums really aren't a chat room and many skilled posters throw out bait from their marketing agenda.

When I started I didn't have a clue, I thought I did from summer construction jobs, but about all I knew were the parts of a house.

My first "deal" was a contract for deed, a friend of the family sold (almost gave) me a small house, I hacked a bit, not a real good job either, and sold it for a profit moving on to the military. I tried buying every house I rented, had no idea other than what the rent was and what a payment buying would be, had no idea of how to value a property! I'm sure I paid too much, but I held them long enough to profit, just lucky I did too.

It was bungle in the jungle until I had a neighbor who was the local circuit court judge, his mentoring over the fence so to speak opened my eyes.

My mistake was thinking I knew when I didn't have a clue. I missed a lot of deals just because I didn't really understand what the big picture was or the game. Oh, I dealt with the good ole boys, got my pockets cleaned but things turned out okay. It was meeting the right people, the judge, that pointed me in the right direction and really got me started. :)

I need to find someone like that!

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Originally posted by @Brian Tome:

@Jeffrey Giffin

Please add me to your list for the next meet up.

Thanks!

Added! As soon as everything is firmed up I will be sending out the final details. Thanks

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Originally posted by @Rumen Mladenov:

@Dottie Bee Rehab was finished yesterday, tenants are scheduled to move in this weekend. Not sure how they plan to do it in the snowstorm, but that is what they said... I will be happy to share the numbers at the meeting.

@Jeffrey Giffin I also vote for Newark or Middletown location, but if Wilmington works better for the others it will work for me too.

We can shoot for Newark if that works for everybody. I think we are all pretty flexible. Does anybody have any recommendations for a place to meet in Newark?

How does February 6th work for everybody? I was thinking around noonish. What is everybody else's thoughts?

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Originally posted by @Jessica Stiner:

Hey Jeffrey,

When is the next meet-up? Holidays have come and gone, so we should be ready for a BP Delaware hangout session.

-Jessica Stiner

I agree! I was away on vacation and just got back a couple days ago. Lets start talking about what day, date, and time would work best for everybody. I was thinking in the afternoon on Saturday Feb 6th. Somewhere in the Wilmington area. We met before down on the waterfront and that seemed like a good option for most people. All feedback is welcome. Please let me know your thoughts and what works best for you all.

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And now the true question. Where do we get a copy of that awesome lease? :)

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@Francis E. Bromwell JR.:

Welcome aboard. I sent you a colleague request as well as a msg. I look forward to speaking with you soon

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Originally posted by @Drew Shirley:

*** This is not legal advice and I am not your lawyer. ***

No offense, but this is terrible advice.

Banks want the property in the individual's name so they can go after the individual's assets if the deal goes south, which is exactly what the LLC is intended to prevent.

And if you deed the property into your name, even for one day, you are now personally in privity with the deal and you will get sued personally if someone sues over the deal.

Finally, quit claim deeds are practically worthless and most title companies will not insure them.

Stay away from the big monolithic banks and find smaller lenders who will lend the money directly to your LLC and not require you to personally guarantee the note. It's not easy to find a good lender who will do this, but it is worth the effort.

Not offended at all. Interesting information. I truthfully have only worked for big banks and have only experienced this through the eyes of the big banks. I can tell you that this is how people do it all the time. Not saying if it is the best way to do it but I will say that is the way A LOT of investors do do it. I've worked with investors who have portfolios of 50+ properties, all in LLC's and they flip them in and out of the LLC's all the time. Again I'm not saying whether it is right or wrong but it is something that is definitely done. Seeing that you are a Real Estate attorney I would believe you have the better point of view. I know if I ever get to the point of having this issue I will contact a real estate attorney to help and make sure I do it the right way.

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Originally posted by @Patrick Liska:

Check before you do what @Jeffrey Giffin says to do, most banks will consider that as you selling and will want there money back ( due on sale clause), you can't just switch title to the house most times, and it will also cost you to do that.

This is incorrect. I've worked for just about every big bank out there and switching a property out of an LLC and back is VERY common practice in the industry. i see it at least once a week.

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I've been on the lending side of things for many years and more info would be helpful. When you say you have a DTI issue is that even when including the rental income on the subject property? Most experienced lenders and loan officers will tell you when you get an appraisal to also get a comparable rent schedule with it. Fannie Mae will allow for you to use the future rental income based on the comparable rent schedule. Another thought is to get rid of some of the debt showing on your credit if you can. Lastly you can always look for a partner who can help. I personally have the funds and credit but I'm unfortunately not experienced enough yet to pull the trigger on a property, probably because of analysis paralaysis.

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I've been on the lending side of the real estate business for many years and I see this all the time. It is actually quite simple. Banks usually wont allow you to keep the property in an LLC for the transaction so in order to get around it you move the property into your own name via quit claim deed the week of the refinance and then move it back into the LLC right afterwards. Its fast and efficient and shouldn't cost you more than a few dollars.

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All Forum Posts by: Jeffrey Giffin

Jeffrey Giffin has started 17 posts and replied 161 times.

Post: "When I started, I wish I knew this"

Post: Delaware?

Post: Delaware?

Post: Delaware?

Post: Your success and how you got started.

Post: New member from Wilmington, Delaware

Post: Name on title = more risk?

Post: Name on title = more risk?

Post: Looking for a lender in PA

Post: Name on title = more risk?