All Forum Posts by: Joe Minteer

There are lenders on BP that will do a loan with rehab > $50k.  I'm working with one I found on BP with my properties in the south and some of these places fall into the same category.  $45k for a shack, and rehab funding to clean it up and rented.  

I'm not sure if we're allowed to post names or companies that we've worked with.  DM me and I'll give you his name and company.  Great guy to work with.

Tracy,
If you're planning to work conventionally, then might not need one, but if you want to branch out and do creative funding, like Flix n Flip, Bridge or DSCR loans, you might need to have one.
I'm just starting out myself and have run into various issues on whether I have an LLC or not, 15 yr mortgage vs 30 yr mortgages, etc. It all depends on how you want to acquire the properties. I'm using the BRRR model, so I did my 1st hard money loan this past week under my LLC for loan plus rehab costs. The HML lender I work with prefer LLC's but do work with individuals. One lender I wanted to work with required an LLC. I worked with a bank on a commercial loan and they required an LLC. So, it depends on your lender. There are definite advantages, and if you're going all in with real estate investing, it doesn't hurt to have one.

I'm confused.  Are you saying you want to lease homes that aren't ready to be moved in?

Why don't you describe one of your deals, maybe someone with experience will chime in.  

You can use it, but you need to filter out what you're working with: B Class homes, Rehabs that need work, area popularity.  A 1000 sq ft place in one less desirable vs one is wanted area isn't going to fetch the same sq ft.  

I like to use Zillow.com or Realtor.com to narrow down an area and housing price range, bedroom, bathrooms and sq footage. I investigate those that have gone through rehabs and those that haven't. In the area I see a completed home can go for $105 sq ft, a nightmare BRRR can be $45 sq ft, while the median is around $80. Just take some time to do some analysis and you'll begin to see your trend in the area.

 Thanks for the information.  I've never heard of the estoppel certificate, though I've only bought one property that had tenants in it, they are Section 8 so I already knew the income and terms beforehand.

 Not to mention, the longer you wait the longer it takes to get to where you want to be.

People back out of deals all the time, especially recently with the rate increases.  Better to lose the earnest money then to lose tens of thousands of dollars.

I'll just toss this out there since I'm no finance expert, but you should really think about preserving and leveraging your capital. When you give up 20% down, it's locked into the home for a few years, but if you have a BRRR, you can get it back out in a few months. I cashed out some money out of a rental and bought 2 more houses and some land. I'm making decent gains, but if you look at it down the road, it'll take a few years before I can realize enough to pull out of them and use them in purchasing more. But if you find the ugly one's that need rehab, pay cash or get a hard money loan so you can rehab and refinance in a few months, will most certainly grow quicker than waiting a few years of paying down a mortgage.

Put a keyless entry in place of the keyed entry.  If he forgets the number, you can unlock it from your phone.

I'm working with a hard money lender that's requesting the same register as a Foreign Entity, but my issues are with Pennsylvania & Mississippi.  

I have my own LLC in PA and I have rentals in MS and the HML is requiring I have it registered as a Foreign Entity. Reason being, they're requesting a certificate of Good Standing, which has to be issued in the state where your LLC is based in. That being said, you have to be registered in every state that you do business in as a FE. I did the same thing, created an LLC in MS for $50, bought a couple properties via conventional lenders, which never had the requirement. But now I wanted to try the hard money route, the lender has this FE requirement.

So, I had to dissolve my state LLC in Mississippi, then re-register as a FE. Sucks since having it as a Foreign Entity means a $250 for a registration fee instead of $50 for the state, but since I'm planning on doing more creative financing options, I have it covered now since I straightened it out.
Also, you need to use a Registered Agent that is within the state, I use www.northwestregisteredagent.com as my RA and is about $50 a year, which makes it affordable.  Nice thing about Mississippi SOS(Secretary of the State) website is that it can all the LLC stuff can be done online and everything is verified within 30 minutes.

Hope this helps.