All Forum Posts by: John Williams

@Stephanie P. Thanks for the response. I plan to adopt your approach of opening the mortgage in the LLC (with a personal guarantee, of course).

@Soh Tanaka I've read that transferring the deed to the LLC could potentially trigger a "due-on-sale" clause.

Thanks @CJ M. and @Reggie Rearden. I'm leaning towards a commercial loan so that I can keep the mortgage in the LLC. It sounds like @CJ M. has found commercial loans with 30yr, 20% down but Reggie was only able to find 20yr commercial mortgages with 20% down. Seems like there are some commercial lenders willing to offer those traditional terms but they may be difficult to find (compared with a typical conventional lender).

My goal is to keep the property AND the mortgage in the LLC's name so that I'm not piercing the corporate veil by paying a personal mortgage with LLC funds.

@Jaysen Medhurst Yeah, my concern is that using LLC funds to pay a personal liability (i.e. a mortgage in my own name) might represent a co-mingling of funds.

@Jaysen Medhurst Thanks for the reply. Perhaps I'm being dense, but it seems that if the property is in the LLC and the mortgage is in my name, then (a) there's a co-mingling which might pierce the corporate veal and (b) the LLC's balance sheet would inaccurately present a debt-free asset. What am I missing?

@Jaysen Medhurst, can I put the mortgage in the LLC's name, even if I personally guarantee it? Seems strange to have the mortgage in my name if the asset is in the LLC's name.

I'm a newbie to the real estate world and considering my first rental property investment.

Any suggestions as to how much I should budget for property insurance, repairs and maintenance, and CapEx?

I'm considering making the jump into my first investment property (buy-hold traditional rental). I plan to set up an LLC.

How difficult will it be for an LLC to obtain a 30-year fixed mortgage (20% down payment)? Will I need to use a commercial lender, and if so, what do I need to know about using commercial lenders? Will I have to personally guarantee the mortgage or will the house suffice as collateral for the bank?

Thanks in advance for your feedback!

Thank you all for the warm welcome!

@Will Kaufmann, I'm a subscriber and big fan of the Triangle Business Journal. Great publication! I've come to the same conclusion so far - Winston Salem offers greater cash-flow opportunities than Raleigh, given how hot the Raleigh market has become in recent years. I'd love to connect with you and learn from your experience in the local market.

@Garrett Crawford Thanks for the recommendation! Has the Fayetteville market been seeing a lot of economic growth that could drive appreciation? Or would you recommend looking for low-cost properties that cash-flow well? 

Hey all,

I’m new to the world of real estate investing and reading everything I can get my hands on. Interested in finding buy-and-hold rentals to produce cash flow.

I’m from North Carolina - currently living in the Raleigh area and have lived in Wilmington and Winston-Salem in the past. I could use help finding good deals in those markets so I welcome feedback from other NC investors!

 after debt service..