All Forum Posts by: Mario Lopez

Thank you guys for your responses. David, thanks for pointing me out to that other thread.

I currently have two residential loans in my name for investment properties and would like to transfer title to my LLC. I understand the due on sale clause exists but that it rarely ever gets called on.

Do you have tips on how to transfer title without triggering this? Is there a particular timeline I should wait to do it?

I'm getting closer to the point where I want to market my investments to obtain 100% outside capital. My business plan is to get financing on the asset, so my questions are geared toward using investor capital for the equity portion of the loan. The assets are 1-4 units of residential, so non-commercial loans. 

1. Assuming I'm using full outside capital, who is being qualified for the loan? Myself, myself and the investor, or just the investor?

2a. If the investor is on the loan, and has to get qualified, it doesn't seem appealing for an investor to have to go through the loan process. Is this an accurate statement?

2b. If the investor is not on the loan, does the lender accept that the down payment is provided by an investor and that I have the financial strength from a debt:income perspective to qualify for the loan?

3. Assume the investor is providing 100% of the equity requirement and I am guaranteeing an acceptable annual return, is normal to ask for 50% title on the property or is there a generally acceptable equity split if I do not provide any monetary equity? In other words, how do you a number to the value of sweat equity?

4. If I provide some equity to put skin in the deal, is there a percentage below 50% that makes sense to get 50% equity in the deal?

I understand I should get a legal opinion and to setup an operating agreement, but I have these questions below to help me frame my perspective for when I go to an attorney and actually market to investors.

Thanks!

I’m also from CA and am interested in the area. What type of capital improvements and ongoing maintenance should you consider on a home there? I am just assuming the furnace and roofing related items due to the winter.

I've had my California Brokers license for many years and have never done anything with it—never registered as a Realtor, signed up for the MLS, etc.

- Does signing up for the MLS allow you to view listings in states outside of where you are licensed?

- Is there a main MLS or Realtor website to sign up? It seems like there are so many different websites. What MLS do realty offices register with?

It’s difficult to navigate. The drop down menus are also finicky. I would prefer the more traditional forum layout that brings you to a new page with the main forums listed on one page, then you click them to enter and see the posts or the subcategories. 

Thanks for your responses. I’m actually more curious on corporate level deductions to keep the S Corp running annually. Payroll taxes, corporation annual renewals, business licenses. Part of the business I am setting up is a consulting business that will charge an hourly rate and I’d like to account for these types o expenses in my fee to clients. 

I've setup an S Corp for my business and am wondering you can help me identify what tax deductions I should assume at the employer/corporate level? 

FICA, State Income Tax. Is there anything else that I should account for?

For those of you are are either flipping a property on a purchasing a long term rental and solely use investor capital, do you offer your investor a preferred return? I'm curious if investors in these sized deals appreciate enough that you are putting in sweat equity that they do not expect a pref.

If you don't contribute any of your own capital, is there a generally accepted equity split that you have found desirable to your investors?

Looking forward to the next event.