All Forum Posts by: Lee Huffman

You may still run into issues, even with a portfolio loan. The rules we've come across is that, if you're a more than 20% owner of the LLC, the mortgaged properties still count against your overall 10 property max. Before you proceed forward, talk to a mortgage broker and run your proposed scenario by him to see if that would be ok. One way I'm working around it when I hit 10 properties is that all of the mortgages (rentals and primary) are in my name only. The next 10 will either be in my wife's name or my partner's name. This way we can have 30 mortgages before we hit the cap.

I'm now up to 7 rentals, with the goal of getting to 30 SFRs over next few years. We don't manage any of them. My time is better spent raising money and project managing the flips and rehabs vs the % you pay a PM.

In the Fayetteville area, you definitely have to buy at a discount in order to make money on sale and to cash flow properly. As Alexander Felice said, appreciation in this area is minimal/nothing.

Originally posted by @Alexander Felice:

There  is an active BP member who is REALLY good at this stuff and has a site designed to help those who want to travel hack.

@Lee Huffman

www.baldthoughts.com

Thanks @Alexander Felice !  I write all about travel using credit cards.  I currently have about 40-45 credit cards and get new cards every 4-6 months, depending on when I'm doing a delayed financing refi on a rental rehab.  In the last year, I've flown to Puerto Rico, St Maarten, Cancun, Cabo, Hawaii, and St Thomas (not counting domestic), all on miles and points.  Coming up later this year, we'll be flying to Cabo (twice) and Italy.  Again, all on miles.

I offer a free travel consultation on my site, if anyone is interested in figuring out how to travel for as close to free as possible.  Just click on the "FREE TRAVEL ADVICE" link and fill out the form, then we'll schedule a phone call.

Lee

PS:  I don't mean to self-promote, but this is a topic near and dear to my heart, and I'd love to help anyone out.

Originally posted by @Tom D.:

@Lee Huffman, what type of loan structures are you using for your cash-out refi? Local lenders or big bank? Have you used the "delayed financing" structure before? Any pros/cons to different structures?

We are looking to go after a similar model to buy rental rehabs, and hold/rent for cashflow. When doing these buys have you guys been using the LLC?

Thank you in advance for tolerating my peppering of questions!

Hey Tom, the loan is a typical 30-year fixed loan on the delayed financing refi. I live in California, but the loan broker we use is in NC. The loan is taken out in my personal name, but then we put the properties into an LLC afterward. So far, no issues with the bank on change of ownership.

We're working on an eBook on the subject that we hope to release soon.  I'll let you know when the eBook is released!

Thanks for the ping @Alexander Felice. Yeah, we buy houses cash in Cumberland all the time. We're looking for 3-4 bed, 2 bath homes, 1100 sq ft+, with a garage and preferably with a fenced yard. What type of homes do you have? Please add me to your list @Jeremy Sanders.

Great news @Nikki Grizzle.  Congrats on a successful transaction!  Best wishes for many more.

Please be sure to add us to your distribution list when you have a property to wholesale @Account Closed.  Good luck!

Hey @Rashad Brooks, we invest in the Fayetteville, NC market and enjoy it.  We now have 7 rentals and would be interested in learning more about your property.

I've met some great people from Fay here on BP.  Welcome to the area and best of luck with your business!