All Forum Posts by: Jimmy Suszynski

The sale is from an estate so the estate's attorney is handling all of the paperwork. I have my realtor. I do have a question about the LLC formation through an attorney. It seems quite simple to fill out the state registration forms--is the attorney most needed for the operating agreement portion? These are single-member LLC's without much complexity.

The reason I ask is that the lender for the property wants the house deeded directly to an LLC where my original plan was to deed into a land trust and reassing the beneficiary as the LLC up after once I was able to get an appointment with a local attorney since it takes 4-6 weeks for the paperwork to come back from the state.

@Suzanne Player thank you and I agree. I am just starting out and don’t have tens of thousands laying around to pay for attorneys to set these up for me. I know it’s a necessity, though.

Maybe it’s best to wait a year or so until I can pay outright for all of these services to be done professionally?

I've been reading through tons of past articles and I understand the mechanics of this, save one thing.

I created an LLC (A), will tax as an S-Corp, for all of the business activities associated with house flips. My branding and checks and business credit will live here.

I am putting an offer in tomorrow on a property and plan to deed it to a land trust so that I can figure this other stuff out. I've read that it is important to have a bank account for each LLC, but, the money I use to purchase and rehab this property is in the bank account of LLC-A. If I create LLC-B to hold title with LLC-A as its sole member, do I need to create a bank account for that and run all funds through it in order to rehab this house? LLC-B will be a disregarded entity, so everything will flow up to LLC-A and taxed accordingly. If I need to, I can open an online business checking account for the holding LLC-B.

I was told by an attorney that I should create a new LLC for each flip, that way if someone 3-4 years down the road tried to file a claim against it, that LLC would have no assets and likely already have been closed. I didn't think of this question until after the conversation and have been trying like heck to find an answer without posting...

Ok, so I was on the right track with a promissory note. Now, I would just need to waive the maximum interest rate of 6%? I want to be paying more than 6% to make it worthwhile for them. Six percent on $2,500 isn't very much, I would offer 10% annual, paid back when I sell/refinance. 

I have a handful of friends and family members that are interested in lending smaller amounts ( <$5,000) for house flips and BRRRR deals. This cash could help with interest-only payments and down payments. I formed an LLC to flip out of and am curious how I can borrow this money so that I can show this as an expense or loan so that I don't have to pay taxes on it when I pull it out of the LLC. I am in Pennsylvania, and the usury laws cap interest on amounts less than $50,000 at 6%.

Do I need to have a promissory note or otherwise included with my receipts come tax time? I would rather not create a new LLC with 3+ people or have to put these folks on the deed for such small amounts, but I would like it to be legitimate. I am curious about how one should handle money borrowed from friends and family when they have a business.

This makes a lot of sense. I am glad I asked because right now I am combining the BRRRR and house-hacking strategies but that is because the duplex was rented far under market value and needed cosmetic upgrades to fetch a higher ARV. It worked in this case since I got into the deal with next to nothing out of pocket (3.5% down minus seller's assist minus additional credits to cover repairs found during inspection). Increasing the property's value by 20% while living there and refinancing out of the FHA mortgage works well in this case.

But, getting financing for a 4-plex will be easier on the commercial side but will carry higher rates and shorter terms. As long as I make sure the numbers are solid before going forward and keep the rehab appropriate for the rents it will pull, I should be okay either way. I am learning that DTI seems to be the biggest killer for the BRRRR strategy.

Are you able to mix hard money with residential lending? I read that you are able to take advantage of residential conforming mortgages on properties held in a trust as long as you are the beneficiary but I don't know if there is a way for them to see how long you've been the beneficiary? 

I'm asking because it is much easier to obtain rehab money for properties when using an LLC, but, if I want to house hack a multifamily that needs a ton of work (hypothetically-perfect BRRRR scenario) I would need to fix it up using hard money and then refinance after.

I haven't heard of folks living in any of their properties owned by their company, is this possible/feasible?

Did you use carrot.com when you set up your initial site or did you build it from scratch yourself and optimize for SEO ? I spent a lot of time a few years back trying to get page rank on new websites using white hat techniques and link building. I'd imagine those skills will work the same for a wholesaler's website. I'd be interested to chat...I'm in a tough place at the moment and have to find a way to land at least one wholesale deal before March. It seems like a long time but with the holidays and COVID I can see that time slipping away.

Hello everyone. I recently signed up for Propstream and really like the features. I do have a question about lists and how to use them.

Once I make a list, either via filtering or driving for dollars, I'd like to skip trace them. Propstream is very expensive compared to other services. I exported the list and imported it to reiskip. After that, I wanted to import the contact info into Propstream but in order to do that I have to pay an additional 30 bucks a month or something.

What do you guys do with skip traced lists once they're made? I was hoping to use Propstream for the bulk of my stuff but of course everything costs extra and it adds up quickly.

Civil Engineer working in commercial construction management. Long hours and the pay per hour isn't what I thought it would be (salary -_-). At least the experience managing multi-million dollar projects and subcontractors is directly transferrable to REI :)