All Forum Posts by: Anthony C

But, as to your question, you're correct that most conventional lenders won't loan to a business entity these days. That said, in my experience, most portfolio lenders (small banks that keep their loan in-house) and most hard-money and private lenders would prefer to see the assets held under a corporate entity. Though they will also require a personal guarantee from the company owner.

Thanks J (love your blog btw, thanks for taking time to do that).
Part 2 of that question though, is even if I wasn't to finance a flip and instead pay all cash... could I do so just the same under an LLC as he (you?) do under a c-corp?

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Originally posted by Aaron McGinnis:

Originally posted by JAMES Coleman:

If I create a C-Corp, or other entity, how does the financial piece work? For example, can the C-Corp get loans and act apart from me and my wife (who would be shareholders)? Along these same lines, is it possible to get financing by way of small business loans to use for flipping?

Jim -
Case in point, after about a year of operations my C-corp got a VISA card to simplify cash flow logistics and purchasing. The primary shareholder had to bend over and get the ol' financial cavity search. I also had to pony up all the necessary financial paperwork (Statement of cash flows, balance sheet, etc.) along with the first year tax return.

What I found was that most banks heard that you were in real estate and simply told me to get lost. Chase was about the only one I found who was willing to work with me... now granted, I didn't go after the smaller banks but probably should have.

Aaron,
could you do the same under an LLC? I currently have an LLC and began putting offers in some houses but have yet to purchase my first.
I had the LLC already and what i've learned though is most banks won't mortgage to an LLC (for buy'n'holds). Are you purchasing/financing through your c-corp? Would this process you described above work same with an LLC or should I create a C-corp? I plan to flip and/or rent and don't want anything under my name...
thanks!

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Aaron,
Great work. Do you GC everything yourself?

-Anthony

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my 67 chevelle ss396

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Originally posted by Aly L:

We've bought several condos in FL. Last one was $42K cash, taxes $700 a year, insurance $750 a year, maintenance $280 a month, rent $900. The maintenance fees are similar with all of them in that area. All excellent areas, and we're holding for the long term. Property values will go back up eventually, but our plan is to buy and hold for at least 15 years.

Aly,
Hello to a fellow central NJ'er! I've followed some of your posts and would love to hear your experienced opinion on some of your situations.

Based on the #'s you provided above, it appears as if you have positive cash flow by a few hundred $ (not sure what you pay mgmt fee but I assumed 10%), and since you paid cash, at the end of 15yrs you would have accumulated ~$70k in rental income and any property appreciation, on the 42k you paid for the condo to begin with.
How does this compare with your SFH's, where hypothetically one puts 30-50k down on a $150k'ish property. Here is a hypothetical situation: http://i970.photobucket.com/albums/ae184/thecentfamily/property150k.jpg for a house in NJ. Assuming only a nominal 10% appreciation after 15yrs.
I am in analysis paralysis currently!! and would love to hear how you compare/prefer either situation speaking from experience..

thanks!

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Lafi...after this experience.. how did you change your target investment types? Would you continue with another condo...how's it going?

Central NJ here

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Originally posted by Mitch Kronowit:

Originally posted by Anthony C:

Mitch & Justin... what price point would you target for those purchases? At what price is too much for a SFH? $200k'ish?

Here in SoCal, I focus on the $100k-$170k range. As long as we're just dreaming here, I would take $1 million and buy 10 condos in my home town for $100k each (they're listed around $120-130k, but I'm offering cash, right?) or 6 sfr's in Riverside County or some combination in between and enjoy the $9,000-$11,000 gross monthly income with the potential of doubling my investment within the next 10 years.

Or I could just blow $1 million on liquor and women and "waste" the rest! :wink:

Could you provide an example of how you're clearing 1k+ per month on a 100k condo? Here's my best estimate of a pro-forma on a $200k sfr in nj.

http://i970.photobucket.com/albums/ae184/thecentfamily/propertysheet2.jpg

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Originally posted by cashboy2010:

OK good. Can you provide more granularity? What towns are you looking in?

Except for 2 or 3, I consider most of monmouth county...why do ask? I'm looking more for advice and critique on the actual strategy. If you'd like to discuss particulars such as individual streets please pm me.

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Originally posted by Brendan J.:

Anthony,

No one here will argue the fact that you could make money with this deal. Your numbers are accurate, you could realize a 289% 15 year return on your money.

My and Jon's point is that there are people, in other parts of the country, that could make that number 700% +.

Profitable or not, it still isn't the best investment you could find. Have you looked at other areas?

Well i'm trying to stick to one of what I thought was a suggested basic rule...start close to home. Could you point me in a direction of trusted property managers? I have numerous acquaintances who do $50k properties via managers in GA & FL, and they are owning sub-par properties that may have a 4 or 5% ROI annually but in very unstable economic areas so i've shyed away.

I am open to anything though..and would love to continue this conversation

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Originally posted by cashboy2010:

What counties in NJ are you looking for deals in?

I'm in monmouth county and sticking very specific parts of surrounding towns that are desirable to quality families looking for good schools and good locations. Even $200k is tough to find, again these are not fancy homes/areas..they are basic starter homes.

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All Forum Posts by: Anthony C

Anthony C has started 7 posts and replied 94 times.

Post: Buying Under a Company Name

Post: Buying Under a Company Name

Post: About done building the current flip...

Post: ..:: Car Enthusiasts ::..

Post: Buying my first rental.

Post: Buying my first rental.

Post: Buy and hold or flip in Northern CA

Post: My strategy - how does it look? Please critique

Post: My strategy - how does it look? Please critique

Post: My strategy - how does it look? Please critique