All Forum Posts by: Jonathan Kincaid

@Mark Rocka

Hi Mark,

You simply buy the property in your name and acqire the loan in your name. Upon closing, contact an attorney. The attorney will perform a quit deed, quitting your ownership of the property, then a warranty deed, to place the asset into your LLC. If you ever wish to refinance, you simply quit deed the property back into your name and conduct refi.

So long as you make your monthly mortgage payment, banks will likely not come looking to see if you, or your LLC owns the property.

Good Luck!

@Ryan Rush

Do you have equity built up in your personal or rental properties? If so, I would tap into this via a HELOC or REFI..... far cheaper money than credit cards.

You need capitol to help you weather the storm.

@Ryan Rush

Rigo,

I'm not a lawyer, nor giving legal advice. I'm a fellow investor. 

You would first close on the asset and rehab it with a HML, while the property is in your LLC. Once you bring in renters and stabilize the property, you would then have the option to transfer the property into your name, thus qualifying for a conventional REFI loan through your bank, with which you could cash out the HML lender and lower your interest rates. New Rules, created by the Trump administration, state that a conventional lender can do a Refinance within a matter of a day or two, after you transfer the deed from your LLC to your name. There used to be a mandatory waiting period of a month or more for... no longer! Caveat: Ensure that your property qualifies for a REFI with a conventioanal bank before you transfer the asset into your name. Transfer to your name is always the last step in the process, for purpose of asset protection. Also, I'm unsure as to if "Due on Sale Clause" is also applicable to HML. Probably so, so you would want to position to pay them off quickly, upon deed transfer to your name.

An attorney can perform a "quit deed" or "warranty deed" for you, which will transfer the asset from your LLC to your name, or vice versa. The deed transfer does trigger a taxable event, which you will pay for in "tax stamps", if you have a mortgage on the property. The amount of the tax stamp is determined by a percentage of the loan you have on the property. Be careful to not trigger the "due on sales clause". For example, if a lender lent your LLC the money to acquire the asset, if you transfer the asset to your name, from the LLC, the lender has the legal right to call you on your note, thus demanding that you pay the entirety of your outstanding mortgage, upon sale.

I recently hired a property mgmt company who takes care of tenant screening and showings for me.  I did this after screening tenants myself for four years and it was a great move.  This deflects the liability from yourself to the property MGMT Company for discriminatory renting practices, etc.....   Also, I felt bad accepting a $20 fee from each perspective tenant, so I subscribed to a back ground check/credit check software and wrote it off on my taxes, thereby negating the need to charge each of 20 prospective tenants a $20 fee.  Waiving the fee also worked wonders to keep potential renters in my "rental funnel", I would often call them back when I had a vacancy, and they would be happy to chat. 

Enzo,

Great question! From my experience, we got very comfortable with Single Family Homes (SFH) rentals, now we're looking to Cash-Out Refi and sell them via 1031 exchanges to move up into commercial apartment buildings. I like this as it gave us a bit of practice, before getting into larger acquisitions with more at stake. I also feel that it allowed us to diversify our investments into multiple houses/duplexes. Certainly people such as Grant Cardone would say "Go Big" from the beginning and get into apartment buildings. I personally am a fan of starting with SFH/Duplexes/Triplexes and working your way up into apartment buildings. Crawl/Walk/Run

Caveat: I highly recommend teaming up with a good property MGMT company, particularly if you get an apartment building, but they have been a time/stress savior with our SFH/Duplexes, too!

Matthew,

There is not a problem with working through one realtor. Although, you might expand your network by having another realtor or two on your team,as you expand, and begin looking in areas outside of your realtors area of expertise.  Just remember that whomever brings your the deal that you pull the trigger on, should get the commission. 

I went through one agent for my first four deals. Subsequently, as we've expanded into other areas we've required and added additional agents. Also, it is too easy for a realtor to set up your perimeters of 100-150K SFH within the boundary that you define, and dial you in with automated MLS updates. So, you are not asking too much, particularly as how you plan to participate in multiple acquisitions. The realtor should be happy to assist.

Great, thank you for the references, Steven.

I will be in contact.

Seeking a referral to a Florida based CPA who is well-versed in tax laws beneficial to real-estate investors (Advisor and Tax Preparation Filing)

 After reading, "Tax Strategies for the Savvy Real Estate Investor", I've decided that something is wrong, as I'm educating my CPA on real-estate tax advantages, and I'm at fault:) I need to step up my game and work with a CPA who understands real-estate tax advantages.  Mia Culpa.

Thank you!