All Forum Posts by: Account Closed

@Jonathan Ahle Open and LLC. Have that LLC loan to you personally. File a deed in that county and then go to a bank to refinance the existing mortgage. That way your not messing with delayed financing guidelines.

Wish I could’ve been there.

@Brian Ploszay Thank you. I’m still kinda new and wanted to make sure I wasn’t missing something. Best... Jorge

Someone please help me understand how this is a deal. This is based on a property in the greater Los Angeles area in a city named Norwalk. The info provided is from a wholesaler Please note he states its a teardown and the asking price is more than the comps he provided which are larger properties than the subject property. SFR 2 bed / 1 bath 792 sf Lot: 8,599 sf Pickup Price: $475K Est Rehab: $775K After Repair Value: $1.8M ($450K per unit) Tear down existing home to build 4 brand new townhouses with 3 bed 3 bath and approx 1,500 sf each unit Comparables: 12307 Cheshire St # A Norwalk, CA - 3 bed 3 bath 1,322 sf Sold Price: $435,000 14786 Pioneer Blvd Norwalk, CA - 3 bed 3 bath 1,483 sf Sold Price: $422,000 12309 Cheshire St # C Norwalk, CA - 3 bed 3 bath 1,142 sf Sold Price: $417,000

@Ryan Keenan

Find a title company that can file a deed for you from your LLC to you personally- and your right no money comes out. You are refinancing your existing mortgage- the one your LLC gave you.

@Daniel Green probably best to consult a CPA or maybe the guy who introduced me to this can help- @Andrew Postell

@Gene Altobelli

Here's some I learned and intend to implement:

Create an LLC and have the LLC lend you a mortgage on the property you arereceiving.The reason why this works is because instead of you needing cash or receiving a cash out loan, we are now refinancing a loan – your loan. There no reason to wait any time or have any "whichever is lower" rule come into play. We are just refinancing a loan.Here's how it works:You create an LLCYou buy a homeYour LLC gives you a loan for the homeYou file the deed for that loan at the county courthouseYou use the money from the LLC to buy and fix up the propertyOnce the property is completed, your conventional lender comes to refinance the loan Your conventional lender runs title and sees there is a loan.Your conventional lender refinances you into a new loan, and cuts a check to your LLC in the amount of 75% of the value.Please don't confuse this 75% with a "cash out" amount. The non-cash out LTV on a refinance is also 75%. We are refinancing a mortgage. Your LLC's mortgage. Essentially your LLC has become the bank/hard money lender/etc. However you want to think about it. You get to set the interest rate (it can be 0%) and you get your investment amount back sooner.Some things to think of:To file a deed at the county courthouse is $100-$150 in cost (depending on which county)And you want that note to be pretty close to 70% of the ARV for the property if you don't want to bring any money to closing. 70% will allow you to roll in your closing costs. If you want it to be at 75% just keep in mind you would need to bring your closing costs out of your pocket to complete the refinance.

The expert is a guy named @Andrew Postell

Hope this helps...

@Justin Thompson

I’ve been in Los Angeles my whole life. 

I too am looking in Milwaukee and like Marcus said it’s very competitive. I was out there in April and it was definitely a good idea. 

All the best...

What is the asking price and what is your strategy to purchase it? 

Are you going to pay cash, put a down payment?

Are you going to BRRRR it?

Do you know what rents go for in that area and in the condition the property is in can you raise the rents if they are under market?

If the numbers don't change then obviously it's not a deal...

@Joshua D.

I couldn't agree more with the first 2 responses from @Brian Pulaski and @Mike Cumbie. I am speaking from the vantage point that I adore my wife and as soon as I can she'll be the first to quit her W-2 and then me. 

Just my 2 cents...

@Andrew Neal

Here is something I learned and am looking to implement once the opportunity presents itself:

Create an LLC and have the LLC lend you a mortgage on the property you are receiving. The reason why this works is because instead of you needing cash or receiving a cash out loan, we are now refinancing a loan – your loan. There no reason to wait any time or have any "whichever is lower" rule come into play. We are just refinancing a loan. Here's how it works:

You create an LLC. You buy a home. Your LLC gives you a loan for the home. You file the deed for that loan at the county courthouse. You use the money from the LLC to buy and fix up the property. Once the property is completed, your conventional lender comes to refinance the loan. Your conventional lender runs title and sees there is a loan. Your conventional lender refinances you into a new loan, and cuts a check to your LLC in the amount of 75% of the value. Please don't confuse this 75% with a "cash out" amount. The non-cash out LTV on a refinance is also 75%. We are refinancing a mortgage. Your LLC's mortgage. Essentially your LLC has become the bank/hard money lender/etc. However you want to think about it. You get to set the interest rate (it can be 0%) and you get your investment amount back sooner. Some things to think of:

To file a deed at the county courthouse is $100-$150 in cost (depending on which county) And you want that note to be pretty close to 70% of the ARV for the property if you don't want to bring any money to closing. 70% will allow you to roll in your closing costs. If you want it to be at 75% just keep in mind you would need to bring your closing costs out of your pocket to complete the refinance.

Hope this helps..