All Forum Posts by: Michael DeCicco

Hey guys - how do we structure this business agreement where there are 4 homeowners on the Title but only 1 borrower? The loan borrower wants bought out but agrees to not sell or refi the house since interest rates are high. How do we structure this so that all 4 parties are secured?  (ie. 3 partners investment is safe, and the borrowers loan is safe)

It'd be 3 people holding 100% equity in the home and taking rental business profits, while the borrower who the loan is under gets residuals for putting his credit up and also gets profits from the rental business. How do we remove the borrower from the Title without causing a Due on Sale? Do we need multiple LLCs? Something else? HELP! Thank you.

In a SubTo deal, as the seller, can someone walk me through the lien part? Placing a lien on the property to guarantee payment from the buyer, what if the buyer wants to sell/refi? Does the buyer always have to pay off the existing loan in full before selling or refi? Is there a way around this or a legal agreement you'd suggest? Thanks

@Shiela R. I have 3 business partners, I am the 4th. All four of us have a 25% investment/stake. (i.e. we have each contributed $20k to the business) Correct, the loan is in my name. All four of us business partners will run the STR and complete the necessary duties for the business to run efficiently.

 25% cash investment from each partner for down payment, mortgage, repairs, supplies, running the rental. 

I have 1 other post that explains my situation where I am the loan borrower and take on all the financial liability but am in business with 3 others who are on the home Title. 

2 of the 3 others couldn't get approved for the loan so I took it on myself so that we could get the house.

I'm wondering what would the preferred setup method should have been. A new LLC with no business income/credit history. How would you have gone into business in this scenario?

Hi all - few details about my situation:

- Bought a house with my buddies in Arizona to get in the STR game

- I am the only borrower on the $180k loan

- My 3 business partners and I are on Title, Deed, and in an LLC together

- I may want to buy a new primary house next year for my wife and I

The mortgage is only in my name, and this $180k mortgage negatively affects my DTI ratio currently. We researched transferring the property into the LLC (to limit liability since it'll be a STR.) My lender told me that if I apply for a loan for a new primary residence next year with my wife, I can use the tax return from this project to prove rental income and improve my DTI.

Does this all hold true if there are multiple people in the LLC/on the tax return? Also will lenders allow just a few months of proving cash flow from a tax return to completely wipe this $180k mortgage from my DTI? This may be an accountant question, but I think experienced lenders will know. Thanks so much.