All Forum Posts by: Jim S

You probably will have a hard time transferring a property with an existing mortgage because you would be transferring ownership from an individual to a LLC. That will change the type of loan in the mortgage holders eyes.
In Maryland you can file one time to transfer property from private ownership to a LLC and avoid transfer and recordation taxes. After that you get dinged by the taxman. Every state is different so you probably want to consult a property & tax attorney in your home state.

It depends on what your short and long term goals are. You can usually only put 4 mortgages in your name including your primary residence. Any more than that and the notes becomes unable to be sold to Fannie Mae. Some local banks that hold their own paper would solve this issue but are harder to come by.
An property held in the name of an LLC is harder to get a mortgage because you can basically walk away with minimal ramifications leaving the lender holding the bag - a problem for them in a declining market.
The benefit of a LLC is the protection the corporation offers you as an owner from liability. Say one of your tenants buys a dog with your knowledge and it gets out and mauls a child. You are going to get sued and will probably lose. Lots of things can happen that are out of your control that will exceed the coverage on your insurance policy. Defendants will always go after you too as you are presumed to have deeper pockets.
If you do end up keeping rentals in your name then make sure your spouses name is also on your primary residence but not on the rentals. I know in at least Maryland there is protection offered to her in regards to the primary.

Some of the flippers are better than others. More entertainment value with marginal learning.

BTW, what's BPO?

We are different. We are looking for certain areas of Maryland. We are particular about the area and about the home.
I also just found a capital company that lends to LLCs.

The deal is:
If you were looking to buy, renovate and sell, the program would be as follows:

80% of the acquisition price or “as is†appraised value, whichever is less

100% of the cost of renovations as long as the total loan does not exceed

80% of the “as completed†value

1 year interest only loan

Floating rate at the WSJP + 1%

Floor of 7.25%

1 point

We have been working with one lender which seems to be more enthused about offering discounts when we finance thru them also.

We hire two laborers for $250 per day for the pair. That will get you 8 hours of work. You will have to provide all supplies and we usually buy lunch just to keep them in house & working. We use them to clean out, demo, carpet removal and general painting. Once you find the right laborers, it can save you $$ over a contracting firm.

I know what a LLC is but am not sure what a Land Trust does and how it varies from a LLC.
Why would you use a LT over a LLC?