All Forum Posts by: Lyndsay Zwirlein

Quote from @Jonathan McGarrity:

I am securing lending for an LTR. It is the first property our LLC is purchasing. There are 3 members and ownership is split equally. The plan was for me to be the sole guarantor. The lender wants the guarantor(s) to own at least 51% of the LLC.

Is this the standard?

Is there a good way to make one person 51% owner of the LLC but distribute ownership of actual assets equally?

Thank you.

Every lender has different requirements. Some require everyone with greater than 25% ownership, while others require everyone no matter what % ownership they have. My question is what is causing you to want to be the only one as guarantor? Are you worried about it reporting to your credit bureau or something else? 

Quote from @Jason Thompson:

With so much speculation about the market and its direction, are you waiting on the sidelines, ready to pounce, or are you still pushing forward with conservative underwriting regardless of what the market does? 

It’s impossible to know what’s next, so I personally am sticking to our long term plan of continuing to acquire. However I'm
underwriting extra conservatively and holding more reserves. I personally believe sellers are more willing to offer credits now to help buy down your rate and you’re facing less competition (depending on market). Plus inventory is still low so I think when (hopefully) rates go down, the competition will be back and potentially drive up prices. Again who knows what happens but my biggest priority is moving forward and underwriting safely. 

Quote from @Eric Batte:

I'm in the market to purchase a STR.
In my case I don't have any limiting factors - downpayment, employment, credit score, DTI, etc. are all no problem. What are the best options for financing in today's environment?

Conventional! If you intend to use the property a couple weeks of the year, there is a vacation home loan (90% LTV) or if you intend to use it strictly as investment then there’s a conventional investment home loan (max 85% LTV). Good luck!!

Prob depends on your market and target client. Bill Faeth just put one in his Gulf Shores property - you could prob get more info if you follow him on social!

Quote from @Andy Lanyi:

I have two properties, 5 apartments in Covina Ca and 8 in upland Ca, that I have free and clear that I would like to pull money out and purchase additional apartments. looking for a few mortgage brokers to give me some idea of how much money I call pull out and terms of loans. 

I recommend a blanket lien for something like this. Some lenders have limitations on minimum loan amount and also loan amount per door. 

Great pic!! Where is it located? Love that you picked a place you enjoy visiting. We’re trying to focus on that too!

I use Kin for our FL rental. Have heard good things about Citizens. Proper is good for STR but doesn't offer wind coverage which most lenders require, so that has been problematic for a few clients.

If I could do it all over again, I’d do more of what you’re proposing in option 2! Take advantage of the low down payments for owner occupied properties. Although it all depends on your long terms goals and where you want to be 5-10 years from now!

I think the benefit in these deals is finding someone who is experiencing some pain. As an example they need to move but overpaid for a property so they can’t sell otherwise it would be at a loss. Or down in FL people have had success with sub to deals where there’s hurricane damage the owner can’t afford to pay. So you could offer to pay the repairs and take over the property. Etc 

Awesome project! Congrats! What do you estimate for gross rental income and cash flow?