All Forum Posts by: Mike Schoonover

Recommend you use the financial group you’re doing your investing through.  Not worried about credit ratings.  Am wanting recognition with the bank or finance group I’m doing business with. 

Would reconsider USBank.  They are nationwide which make it easier for multi state investing.  They do both commercial and retail banking.  I’ve had great success with them. Develop a relationship with their commercial banking.  They will take care of any issues you have on the retail side.  

@Mike Schoonover, generally speaking don't expect to have business credit because most real estate investment isn't really an active business. The value is all in the assets being held.

That said, it doesn't mean you can't get debt in the name of the LLC but you will have to personally guarantee the debt. It works that way for a credit card or even a mortgage on a property. It won't show up on your personal credit because the debt is in the LLC's name.

I would look to work through a local bank or credit union in the area you plan to invest in. They are more likely to serve your needs especially when it comes to any kind of mortgage or LOC.

@Mike Schoonover, generally speaking don't expect to have business credit because most real estate investment isn't really an active business. The value is all in the assets being held.

That said, it doesn't mean you can't get debt in the name of the LLC but you will have to personally guarantee the debt. It works that way for a credit card or even a mortgage on a property. It won't show up on your personal credit because the debt is in the LLC's name.

I would look to work through a local bank or credit union in the area you plan to invest in. They are more likely to serve your needs especially when it comes to any kind of mortgage or LOC.

@Mike Schoonover Of course I am partial to KC since I live here but like @Matt K. says I think there is an opportunity here in the midwest to make some great cash flow with some good appreciation AND fewer legal constraints/renter issues. I can show you a few real examples of investors who have sold their property in CA and bought in KC with the amount of money they cash flowed. The transaction is tax deferred through a 1031 exchange which is the best wealth building tool that too few people use. 

Seeing that your in CA, you might get hit with the Parent-Child Transfer provision. 

For additional info read this article: https://www.sccassessor.org/ta...

Good luck...

I've sold plenty with seller financing- to spread out the tax hit.

No tax hit inheriting with stepped-up basis.

Lots of ways to screw yourself up. No tax benefit.  Sell it regular. 

A lot of publicly traded REITS  are paying dividends of over 10%. Maybe get cf there. 

@Mike Schoonover

What’s the main reason for wanting to offer seller financing? Since you just inherited the property, it should have a stepped up basis so capital gains should be very low, if any. 
Also, don’t draft a note on your own. Pay an attorney to get it done right.