All Forum Posts by: Jordan Nikolaisen

I appreciate the input from everyone. A lot of what has been mentioned has reaffirmed my own suspicions about cashflow challenges with the middle, TN market. 

I'm not necessarily looking just for cashflow. Yes, cashflow is important, as I'll need it to become financially independent. Still, Longterm wealth building is very much a focus of mine. If I need to explore other markets for cashflow, I don't have an issue with it. It is something I anticipate having to do. 

The reason I've recently been toying with the idea of turnkey properties, was for the sake of having more of a hands-off role with the properties themselves- simply from a time consumption standpoint, as I work a W2 and have a part time commitment with the military.

My initial plan was to brrrr, or flip my first property. I still think that's where I'm leaning. My biggest concern with those, is that I know it'll require much more of my attention and time. If I was free from a my W2 career, that wouldn't be an issue. I suppose it's a bit of fear standing in my way there. However, there will be pros and cons with whichever direction I decide to go. 

I've looked for posts regarding turnkey rental companies in Nashville/Middle, TN, but haven't had any luck with finding much info here amongst the bigger pockets community. I've seen some posts from a few years ago, stating there wasn't really much of a presence here with those kinds of companies. But as it is 2022 now, I'm curious if anyone here has turnkey companies they've invested with in Nashville, or the middle TN area recently?

To be honest, I'm not terribly interested in looking for rental properties in Nashville, but more so looking at the surrounding areas in middle TN- i.e. Gallatin, Lebanon, Mt. Juliet, Murfreesboro, Spring Hill, etc. 

So the questions I have- turnkey company recommendations for middle TN? Thoughts on the rental market in the surrounding cities/counties. 

Hope to get some informative feedback! Thanks!

@Luka Milicevic

My goal is to BRRRR. So, rehab- yes. But with the intent to rent and hold long term. My five year vision for myself, is to have a mixture of single family rentals, perhaps small multi-family as well, and some flips sprinkled in each year, to generate enough cash flow for me to be financially independent, while maintaining assets to build wealth.

I've heard conventional loans can be difficult depending on who you go to, when they know it's for a rehab property. Is it typically that difficult to get a conventional loan on a rehab project? I'm not too familiar with HML, other than I know it's typically at a higher interest rate and is to be used for loan's paid back in less than a year. If I hold the property though, I'm not paying that loan off in a year's time though, unless that is part of the refinancing process upon renting it out.

Thanks, @Reid Chauvin. That was some of the kind of input I was hoping for. I'm not necessarily set on a loan directly to my LLC. I know a great deal of investors will purchase in their own name, then transfer/sell to their LLC. That is an option I'm weighing as well, since I can get more creative with financing that way, and potentially have less of my own money in a deal. However, putting my first investment property into an LLC is still something I am high on- whether that's from the original loan, or later via transfer/sell.

LLCs can work for residential loans, if that's what you are meaning when you say conventional. It is uncommon and most lenders won't or don't have the capacity to do it. I know this because a close acquaintance of mine does them here. They call it an "investment loan," which goest directly to the LLC and can be used for residential purposes. I've asked him some of these questions, but I've taken my questions to the forum to get a wider range of input.

I want an LLC for a two big reasons- 1.) limiting my personal liability should a future tenant sue for whatever reason. 2.) tax advantages

Hello everyone,

As the title states, I’m a rookie investor in the Greater Nashville area. By rookie, I mean, I own zero residential properties other than my primary residence, but am working towards my first investment property.

For this topic, I'm curious about a few things, in regards to residential loans in the name of an LLC.

My plan is to create an LLC from the get-go, and put my first investment property in its name. I'd prefer not to have my investment properties tied directly to my name. The reason of course being- to limit liability.

With that being said-

1.) does anyone have recommendations for local Nashville lenders that will lend to an LLC for residential purposes?

2.) as my llc would be brand new with no financial history, what do lenders look for in that type of situation? I was told I’d need to have a reliable contractor in my pocket, when I go to apply for the loan, as they’ll look heavily at his track record. My issue here is- while I do know a great contractor, he only works for no less than $50k on rehabs, and I don’t know what I can afford yet, or if 50k+ rehab is biting off too much for my first project.

3.) what's a typical down payment for an llc? I don't know if those loans are as flexible as personal loans are. The friend I have who loans to LLCs stated that they always look for 20% down. Is 3% down for an LLC possible or a common thing with the right lender?

That’s all that I can think to ask for now. But I know more questions will pop up.

I’m looking forward to seeing the replies and learning from people who know more than I do.

Thanks!