All Forum Posts by: Jonny Morris

@Tom Bertz.

Thank you for clarifying. That is definitely something I want to avoid. 

Just to clarify: 

a) buy through an LLC I need all cash or portfolio lender?

b) buy in personal name, with conventional lender, not able to protect assets as with LLC?

Does anyone have advice for scenario b) in order to protect myself and assets? 

@Ken Nyczaj

Morning Ken - appreciate you taking the time to break down your perspective. 

I was hoping to use my cash for down payment/rehab and use a conventional loan. Realizing this will not be possible if I buy through the LLC...

I have seen/heard a situation where people buy in their personal name, conventional loan...and then sell it to their LLC for $1. Is this a strategy?

I haven’t really explored a portfolio lender and am anxious of the unknown at this point. It isn’t a strategy I had considered. 

Finally, looking at some properties there is potential for me to buy with cash - but that would absorb majority of my funds. I don’t want all my cash tied up in one deal. 

Always looking to learn from you masters. Does anyone have any further perspective?

Dear BP, Firstly, I would like to share that I am doing my best to learn and don't want to give the impression, as sometimes is the case, that I have not tried to find the answers. I have my HELOC approved. I have the following ‘goals’ or ‘things to do’ before I buy my next property. 1) Need a name for the business (Will be BRRRRing properties) 2) File LLC with state. 3) Get EIN. 4) Write my own ‘Operating Agreement’ 5) Open a business bank account. 6) Buy property. My questions are as follows: a) I am getting overwhelmed with the concept of a holding company and multiple LLC’s to protect me etc. Does anyone have a simple model for their R.E business? b) Should I use an attorney? I know this depends on my comfort level on the matter – I feel like this process is possible but don't want to be naïve. c) With funds in my HELOC, can I simply write a check from my HELOC to my business account for purchasing property through the LLC? I feel like I am getting closer and closer to the deal and believe firmly in the quote from Abraham Lincoln: “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” I appreciate your help and guidance sharpening my axe!

Evening all - can someone connect me with Tommy? I am interested in Butte. Cheers

Soooooo...at least it isn't Summer but...

The smell, which I have been blaming my dogs for...has actually been linked to a fairly big, unpleasant error. 

To connect our house to the apartment above our garage or "Additional Dwelling Unit (ADU) we had to have pipes excavated underground to ensure that the garage apartment could connect to sewer/water from our house. The build was finished, passed by the city, and towards the end of the project asked me "who is connecting the apartment to your house?".

I assumed, being the plumber - that he would do so, he explained that we hadn't mentioned this and he'd have to 'send some guys out'. 5 months later and it turns out the waste pipe from the apartment has been draining into our crawl space as no one connected it. They connected the running water - but not the waste?!?!?

How could this be missed? Was it my job? The plumber? The city? I understand that ultimately, the responsibility falls with me...but I also wanted to reach out and see if anyone has a perspective or strategic approach to rectifying this manner. 

1) Connect pipe (50ft) - not overly concerned with this aspect. 

2) Clean up and have restoration company undo the damage - mildly concerned and expect a few thousand dollars fee (who pays?)

3) Feel that someone from the city should have connected/inspected this aspect?

Best wishes for your thoughts...

Thank you Antoine!

I am English and live in Montana. Full disclosure to my 'lack of local knowledge'...

I live in Bozeman and wonder about Great Falls. To me, it looks similar to the Butte market (but a little further for me to travel to from Bozeman). 

Does anyone have any perspective from a 'buy n hold/rehab/BRRRR' approach? I would be interested in chatting with people in Montana. I have few contacts, but not in the areas I will next invest in.

Interested to hear what you have to say :) 

I live in Bozeman, Montana. It was my first ‘build’ with just a 500sq ft apartment shell. But it is a thing of beauty now! It rents for $1250 a month :) Pays won utilities (apart from water). Granted I put more love into it, as I wanted a similar high end finish to our house. But fantastic learning experience and gave me tremendous confidence to put towards my next rehab.

Thank you again for clarifying! Such informative replies! Man this is getting exciting. Almost got things lined up to pull the trigger...

Good morning @Christopher Malone @Charlie DiLisio gents! 

So to clarify: 

- BRRRR is best suited to cash buy, rehab and then pull funds out with a rifi?

- Did you elect to pay interest only (knowing you would pay in full after project was complete)?