All Forum Posts by: Joshua Davies

Hi All, I have recently created a new LLC in TN for the purpose of Real Estate Investing and the LLC has 3 members (33.3% each) including myself and 2 foreign investors from the UK. As my partners are foreign, they will not be able to obtain financing here in the US so the mortgage will be in my personal name. We will then transfer title to the LLC upon closing (we have received lenders permission to do this). My question is, when we come to purchase another property will the lender view me as responsible for the whole mortgage debt and only 33.3% of the income? If so, can I have the other 2 members sign to personally guarantee the loan also which will then make me responsible for 33.3% of the debt in terms of calculating DTI? If anyone has any knowledge of this or experience in doing this please share! Thanks!

@Preston Duron you are right in saying that it will be very difficult to get a loan in the name of a new LLC - if you managed to do it, it would have to be a commercial loan.

I recommend putting the properties in an LLC rather than the umbrella insurance route - if you have time, listen to the podcast with @Brandon Hall and you will learn quickly why.

As for the LLC, it is possible to transfer title to the LLC upon closing (or later) and the loan remain in your name. Most people will tell you that this is risky because of the 'due on sale" clause but I have yet to hear of a time where a lender actually called the loan. Also, it is possible that lenders will allow the transfer on title, I know this because my lender allows it. They approve me for the loan and I transfer title to the LLC upon closing.

Good luck!

Adam Kim Adam Kakuska Todd Olivas Chad Reynoso if you guys send me a PM with your email addresses I can get organising!

Thanks guys. We will get this set up!

@Todd Olivas thanks for replying! Sounds good.. if we get enough response we will get it organised! If not, we can meet up anyway...

Hi All,

Ever since I joined Bigger Pockets I haven't seen many meet ups in the North OC area (Yorba Linda/Brea). I recently connected with a local investor here in Yorba Linda and we were discussing potentially hosting a meet up. Myself and @Simon C. are hoping to host a meet up in the next few weeks and would like to get an idea of how many people may be interested in this. If you are from the OC area and would be interested in attending, please reply to this thread - if we have enough response we will get this organized.

Thanks!

@Ian Livaich when it comes to deals, if it cash flows I'm interested. All depends on your personal goals. Good luck with it, let me know how it turns out!

I would break out the utilities and have them listed under your operating expenses. I know you have built them into your rent, however it would be beneficial to you if they were accounted for. Looks like a good deal.. good luck!

Jonny Morris no worries, pm anytime!

@Jonny Morris no worries, pm me if you need more info or discuss any part of REI.. I was in your situation recently. Cheers!