All Forum Posts by: Jimmy Lin

@Mit P.

Please keep us updated! Im am curious what kind of rate they are offering.

@Tyler J Askin Are you paying a transfer fee every time you switch title? 

@Jerry Padilla Yes, I believe the GFE quoted 0.8 points.

@Eric Veronica That would be something to consider. The main reason I want to secure the loan in the name of the LLC is because of the limit on the number of loans you can have in your personal name. Also, I know that lenders typical don't enforce it, but this would violate the due on sale clause correct?

Thanks for the info @Eric Lau.

Yes, the Philly area has been very popular, but I am a little behind the curve. I think I have approached my business in the wrong way. I am regretting that I purchased the property in a LLC. It is limiting my ability to leverage and expand.

Hi David,

I recently did a flip and spent right around 40k.  It was a 1,200 sqft row home, two stories with a basement (if you're from Philly you know what I'm talking about) Not the best neighborhood, but not the worst.   Purchase price was $76k including closing costs.  House was in very bad cosmetic condition.  There were no issues with the infrastructure however, meaning all the electrical/plumbing heating units work.  Cost of repairs came to about $22k and labor was about $15k.  The whole deal took about 3 months and property sold for $125k. Total profit was around $10k.

This property was a sheriff sale.  We had to pay the tenants $500 to move out when we acquired the property.  We also ran into issues where the tenants came back and broke into the property during the renovation process.  Don't know what type of beef they had with the previous owner... but they vandalized the house.  Luckily, it was during the early stage of the remodel, so it didn't affect our bottom line.  

 Long story short, Sheriff sales are a good way to start.  The numbers part of my deal all worked out.  But I was in constant worry from the day I bought it until the day I signed the sales contract.  So your 40k budget is definitely in the ball park, but it will not cover you if something unexpected happen.  Whats the worse that could happen?  You fail on the rehab and end up taking some loses. But you gain just that much more knowledge and confidence.  Go for it man.

@Chris K. 

@Matt Horwitz

Aside from asset protection. Is there an ideal LLC structure that would simplify the financial part of the business? I see a lot of people suggesting opening a LLC for each property and then a bank account for each LLC. I feel like having that many accounts would be a disaster to manage when you get to 10+ properties. Is there a way to centralize all your investments into one bank account? Would this be the function of a dedicated management LLC?

Hello BP. I would like some advice on securing loans in the name of a LLC. I currently hold a property in Philadelphia. Property is owned outright in a LLC, valued around 180k and occupied with a paying tenant. I am willing to use my personal name and income to "guarantee" the loan. So far, two lenders has asked me to transfer title to my personal name, which is not my end objective.

1) Since the property is in a LLC, do I have to go for commercial loan?

2) What are the typical interest rates? (750 credit score, Reasonable debt to income ratio).  I am getting offered around 6.25% for 30 yr fixed from local broker.   

3) Should I wait until I own more properties (free and clear) under the LLC and apply for a portfolio loan? How many units do you need for it to become a portfolio? Would the rates be more competitive then?

4) Should I purchase properties in my own name in order to secure conventional financing, and then transfer title to LLC via Trusts?

Any feedback or links to relevant discussions would be greatly appreciated! 

Hi Colin, I am also a new investor in the area. I currently hold a SFR in the Northeast region of Philadelphia, and a 3 unit in the York City area. I am currently searching for deals mainly through the public free sites (Zillow, Trulia, Redfin, etc). It is very difficult to find a deal this way. I am currently looking to network more with local realtors and wholesalers.

Yes, 10% seems a bit high.  If your agent is able to quote you 10%, then he should be able to itemize the quote for you also.  Ask him to break down the closing cost to Title costs, Commissions, and Taxes.