All Forum Posts by: Michael Myers

My recommendation would be Tiffany with Horizon Realty and Management. She’s super responsive and helpful. 

Hey Everyone! I've got a TN LLC that I registered as a Series LLC (with series language in the Op Agreement). I'm set to close on a property in early August and am trying to make sure I've got all the correct paperwork/wording to make it all legit. Can anyone point me toward what all I need to fill out?

This is my understanding so far: I'll need an internal document agreeing to the formation of the series (anyone have an example of the wording to use?), I'll file a series formation form with the SOS (not sure which form yet, and apparently it's suggested but not required?), and I'll need to have the series name on the property deed (is that as simple as naming it "123 Main St, and having the deed as "123 Main St, a series of My LLC"?). Anything else I missed?

Thanks in advance for the help!

Great, thanks everyone for the input!

Hi fellow investors! I've got a potential sub-to deal in the works and need a recommendation on an attorney to help set up everything correctly. Also could use an agent who's written up a sub-to contract! Anybody have any suggestions?

Thanks for the input @Ashish Acharya and @Wayne Bridenstine! That's extremely helpful. Silly question here, but I just want to be sure - I assume there is no issue with investing in a note from a different state than my LLC is filed in, right?

Hey Everyone! 
Looking for some finance advice on this question to make sure I do it right and don’t get into some weird tax situation:

I have a HELOC on my primary residence (held in my own name) that I would like to utilize to buy some deals. I have an LLC where I am the sole member, and that LLC is a member of a separate partnership LLC. I would like to utilize the HELOC to lend to the partnership, from my own LLC (which would be paid interest above what the HELOC charges) but am wondering what hurdles I need to jump through to do it properly. I'm guessing I'll have to move the money from the HELOC account, through my own LLC, and then to the partnership. Would I need to write up some promissory notes for each transfer to show what interest is owed to whom?

Maybe I’m making this too complicated. Looking to see what everyone thinks! Thanks!

@Alex Huang whether it’s a “good investment” is fairly subjective and depends entirely on what your goals are. Are you looking to bring in cash flow to supplement/replace income? Are you looking for appreciation and equity that you can draw on 20 years from now? Will you be house hacking and living for free?

Biggest question for determining whether it's a good investment for cash flow is how much are you into the deal for? Then supplementary questions are: Will you be PM-ing yourself, how much are you setting aside for CapEx and reserves? Once you have those answers you can calculate your return on investment (ROI) and compare that to potential returns of other investment vehicles like index funds and bonds, then decide whether that ROI suits your long term goals. Shoot me a DM if you would like help with the calcs or would like to discuss.

@Alex Huang 2-4 units are a bit tricky when determining value since they aren't evaluated like commercial, which depends on NOI. So, don't be too worried about the sale value potentially being low because of below market rates. Especially for a duplex where an owner-occupant has the right to ask a tenant to move out when they move in (as far as I know), then you only have one tenant to worry about.

Since you’re coming in with no tenants, as long as you keep up with yearly rent increases it’s going to take quite a while to get behind market rates, especially because everyone else will be abiding by the same rate increase rule. Can’t fall behind the market if you’re updating your rents each year along with the market!

@Eric Alvarez, I lived in Houston for 6 years, so know the area fairly well. There are plenty of different areas throughout the metro area, so it really depends on what class properties you're looking for. Main thing to watch out for is flooding. They've had a good number of "100 year" flood events recently, and Hurricane Harvey was a "500 year" flood event, so lots of recent knowledge on what areas are susceptible and what areas aren't. I have an agent friend there named Stephen Myshrall (HAR Link), he's a great guy who can steer you in the right direction. He was the one who listed my primary residence when we moved out; I haven't looked at any rentals/flips with him, but he does know a wholesaler or two in the area and occasionally he posts deals from them, so could probably set you up that way.

As for San Antonio, I'd recommend reaching out to @Erin Helle. She's been in the market a while, knows it well, and would be able to wholesale you a deal and walk you through the process if it's your first time. She's super genuine and loves helping new people get started, and is just a rockstar in general.

Best of luck out there!

@Tim Lee not yet, but I’m thinking we’ll go that way once we get a few doors under our belts. I’m always looking for tips on tings we’ll be facing in the future.