All Forum Posts by: Michael Conte

I see all the memes about "quit my 9-5 to invest in real estate but now I work 24/7". Just wondering what your day to day lives look like living off your real estate.

Currently 1 year in on the journey with 4 properties. 3 of which were BRRRRs that all money were pulled out of.

In a bit of a lull looking for next property though. Hoping some of you can she some light at the end of the tunnel when you've reach your end goal numbers

@Katelyn Andrews I'm curious as to what your avg rental rate is. I just moved new tenants in a few weeks ago requiring 1 month and 1.5 month security deposit. Rent is 2400 so that came to 6k to move in. If I included last month's rent as well it would have came to 8,400 which to me seems like asking for a lot

About to be under contract for my 4th house. Seller added the following revision for an AS IS sale:

"Buyer hereby represents that he has personally inspected and examined the above referenced premises and all improvements thereon. Buyer hereby acknowledges that unless otherwise set forth in writing elsewhere in this contract, neither the seller nor the seller's representatives, if any, have made Any representations concerning the present or past structural condition of the improvements. Buyer and seller agreed to the following concerning the condition of the property"

A. Buyer accepts the property and it's as is present condition

B. Is buyer agrees that he will not hold seller or its representatives responsible or liable for any present or futural structural problems or damage to the foundation or slab of said property"

Should this raise any red flags or is this wording normal for an AS IS sale?

@Michael S. thank you for reassuring that this could be done, especially at a non cashflow killing rate. I have a meeting set up tomorrow with a local small bank i am hoping goes well. unfortunately my partner and myself have done all of our personal bankings and our individual businesses bankings at big name banks and they dont provide the current service we are looking for 

@Jay Hinrichs ahh got it! thank you for taking the time to elaborate. Will definitely be looking into additional umbrella insurances

@Kevin Hill would love to connect! could you elaborate on the 6 month seasoning? i was always under the impression that seasoning was needed if the property had a mortgage

@Paul Welden your spot on with the increased rates and fees. i was in contact with a few lenders today that could get it done (75% LTV and let me hold property in LLC) and all their 30 year rates started at 4.25%

@Matt M. half and half. We wanted a separate entity to run the business through and the added protection was a plus.

@Stephanie P. Thank you for the useful insight!

@Steve Vaughan our lawyer had recommended TIC but thought it would be best to form the LLC and have all transactions go through there.

@Jay Hinrichs could you elaborate on "your kind of judgement proof"?  not entirely sure what you mean. also, we had planned to scale rather quickly so we thought the llc would be advantageous for that as well. assuming we could get these cashouts complete, 1M worth of property by the end of the year was the goal

@Jay Hinrichs the llc is a 2 member partnership which was the main reason we went with it

@Paul Welden This is exactly what was recommended by multiple lenders but like we've both pointed out it pierces the veil. I think this will be our last option if we cant get it done in the llc. Thanks for the reply!

@Eric James Thanks for the input. I'll be sure to bring that up

@Alecia Loveless good thought! Since posting ive spoke with 2 portfolio lenders whose main requirements we didnt fit was the minimum property value of 100k on the one property. 

@Scott Wolf all three properties are in NJ. None of the lenders i spoke with mentioned any seasoning periods. their biggest concern was the properties being held by our LLC. I haven't heard of Civic but will definitely look into them, thanks!

@Daniel Molina i did manage to come across one lender today that was open to it. The issue they had with the property that had no repairs was the value being under 100k. you are also right about the rates, the lender i spoke with says they would be starting at 4.5% for 30 year. Thanks for the info!

@Jay Hinrichs good to know. The BRRRR though would be smooth sailing if the properties were just held in our names and not the LLC. Ive previously spoke with the main investor friendly lender in town and he said he would be able to do 75% LTV cash out refi around 3.25% if we put the properties in our names. my next step right now is finding an asset protection lawyer to get their opinion on using the LLC properly or just putting the properties in our names and using an umbrella policy

My partner and I closed on our first 3 rental properties between March 15th and April 27th. All 3 properties were purchased with cash and placed in our LLC. We have not been able to find a lender that will cash out refi to an LLC held property. At best we have been recommended to put the properties into our names and then after refi put the properties back in the LLC. I believe that would defeat the whole purpose of the llc (pierce the corporate veil)? This was never mentioned in any of our research the difficulty of finding a lender on LLC held properties. We are starting to wish we just put them in our names. Last night i made a list of zillows top 50 customer rated lenders for my local area and i have called all 50 today with zero luck. I would appreciate any and all input! We currently have 2 more deals waiting for us to buy but all of our money is wrapped up in the 3 properties. We are hoping to find a lender that will let us refi with property held in LLC and a 75% LTV. Property details below

Property 1

110k purchase price 39k rehab 200k ARV 1850 rent

Property 2

57k purchase price No Rehab (inherited tenants) 80k ARV 1100 rent

Property 3

95k purchase price 16k rehab 150k ARV 1650 projected rent (~2 weeks of work left before ready to rent)