All Forum Posts by: Kevin Kroll

Awesome, thanks guys!!

@Steve Vaughan The benefit to me would be that I could potentially sell 2 of my properties and reclaim ~$75k in equity. I could then use these proceeds to purchase 3 personally owned properties.

So I would start with (2) 100% owned properties, and leave with (3) 100% owned properties + (2) 50% owned properties. Without investing any additional cash.

I have been working with a partner to purchase multiple SFRs through an LLC which we co-own, to be financed under a single commercial umbrella loan.

Basic structure being a 90/10 split on initial cash contributions; I manage every aspect of the property from aquisition, to improvements, to tenant managment; and then we have a 50/50 split of profits.

We currently have 1 property under contract, but are struggling to get the 4 we were hoping for. As such, I am considering selling some of my personally owned investment properties to the LLC. The idea being that I would recapture the equity I have in these properties and be able to "reload" my conventional mortgage limit one at a time as deals become available.

Has anyone done somehting like this? Sold their personally owned property to an LLC where they are then a co-owner? Would I still be able to do a 1031 exchange with the proceeds?

If you have good credit, enough cash for down payment and reserves, and enough income to satisfy Debt-ti-Income ratio requirements it is a fairly easy and straightforward process to purchase a property as a buy and hold.

It is considerably more complicated if you are looking at flipping a house that currently is not in livable condition.

As a landlord I try to filter out all the peripheral information that people use as explanations or otherwise contribute to a discussion. It is difficult because human nature makes you want to be sympathetic, or listen to your "gut" etc. But it is best to just stick to the facts.

Them being on the Dave Ramsey plan might be important to the tenant, but it should irrelevant to the landlord. Simply state what is expected and when it is expected and what the follow on actions would be, and their timeline if expectations are not met.

@Shane NelsonI am currently exploring just this sort of thing. I am looking at setting up a limited partnership where I am general partner and then bringing in investors as limited partners. My 3 big focus areas are 1) the property itself and the analysis that goes into it, 2) the terms of the partnership agreement, 3) relationships with potential investors. I'd recommend focusing on the same areas.

A good resource might be the realtor you used to acquire the property. I have a strong relationship with my realtor that has been very valuable. She is great as what she does, plus her company offer PM services, and she owns her own rentals so she is a great source for this type of information, as well as referrals to services like painters etc.

I'd ask what the motivation for creative financing is. Nothing against it necessarily, but if you have the cash for down payment, and reserve requirements, the income to satisfy DTI requirements, and the property in question is a good rental property, then there are great options for conventional mortgages, and with rates being where they are right now, I would want to take advantage of conventional financing before getting "creative"

Could not agree more with @Joe Villeneuveon this one. When I started investing in Augusta 3.5 years ago, I laid out a plan to achieve the goal of $36k in annual cash flow after 5 years. Once I started executing the plan, progress came faster than I expected. I have now already achieved that cash flow goal, and am now aiming for $60k at the 5 year mark.

what @Charlie Fitzgeraldsaid. If you are wanting a separate account from your primary account because it helps your personal accounting then you can easily open a  dedicated checking account for this purpose.