All Forum Posts by: Alex Alaniz

can you elaborate more on that. I am going interested to know about this. How would he assume the fall? 

Here's the deal I'm working through. House is an estate property currently vacant. The house is listed for 105k I bid the property for 75k with closing costs split down the middle. The house needs 20-25k to bring it back to life. ARV @ 120-125k.

My situation is they accepted my offer but I find out my realtor forgot to include  the closing cost split. So they refused my counter offer and I am unsure what my next move should be. I don't want to lose the deal over closing fees however, I don't want to appear for lack of a better word, stupid....any advice would be greatly appreciated!

Thanks,

Alex

valid points....but speaking for myself only. I eventually would want to get past conventional financing and not depend on this type of financing for every deal and either be able to finance these deals 100 percent cash, or get into some other form of private lending LOC etc., If I am buying a property for cash I can put my LLC on the deed or trust and now it won't be assay as clicking a few buttons.

@Account Closed

Thanks for your input.  I am aware of due on sale clause and I don't listen to the gurus, Rather I educate myself  as best I can and real estate is a sector/field you can learn something new constant,

Look at the creative ways people can acquire properties, if you told your friends you were doing that they wouldn't believe you,  How about wholesaling properties, people do it.  It simply boils down to what you don't know, you don't know.

Lets take Property A for example:

I own it free and clear.  Placed in a Trust titled massive assets & holdings which makes my holding company the beneficiary that I control.  I might even decide to have a management company manage rent for me and tenants may never see or know who I am.  That is what I was trying to get at.  It may not make it impossible to link me to the assets but it sure adds more work to finding out who i am and what I have.

@Account Closed  I believe the name will stay on the actual mortgage but the name will change on the deed which I've heard can raise red flags to your bank.  I asked mine, and he said it is not likely they would ask for pmt in full as long as they continue to get paid etc.,

My method for this is also to shield the name of actual owners but use as a tool or strategy to buy the properties with my LLC or Trust. Have you done this yet yourself?

@Account Closed I would not lie to a judge as that would defeat the purpose of me going through the steps to properly set up a trust/LLC. If I'm going to lie than I would see no point to any of this. So, no I would not lie, I answer like this: xyz owns the LLC that owns the property thats controlled by the trust (me) does this kind of set up make it harder for the judge or does this not matter?

@Warren Kirschbaum That is what I am looking for.  I really don't want properties in my name, rather I want the control of them but with the masked identity behind them.  Also, I will be buying a lot of properties with someone else.  For example, this next deal the financing is going in one persons name but the funds are coming from me.  I suggested transferring this property into a trust with both of us as the beneficiary to exercise partnership increasing both of our worth in the deal.  I own a property in Illinois and this next one is in wisconsin.  I am still confused on the initial set up of these entities but from what i read I feel it offers lots of options as far as partnerships, collateral, and seller financing.  Do you have any experience using trusts?

Thanks again fro the input!

I would say it depends what your goals are.  If it rents and brings you positive income that looks good for your financial statement and a buy and hold standpoint.  Banks will see this as a good thing should you need to borrow any money in the future for other investments or loans.

@Jay Hinrichs Thanks for the information, Really appreciate it, at the end of the day I want to be fully protected and be able to sleep at night once I get to a level such as yourself. Right now its fine. I'm a small fish, but the path I'm taking will change that and with my plan of action I will have a lot more at stake. Sure a person can do everything right and be the best version of a landlord/ business person that they can be and something can still go wrong, At that very moment I want to be protected, Which is why I am on here reading and researching best practices now rather than later. i will do more research on LLC protection and maybe a rust won't be necessary. However, I like the idea of it as both an estate planning tool and privacy tool.

@Jay Hinrichs It's simple right now but will it be simple when I have 5, 10, 100 properties? I would rather see my LLC name come up on a title that I control than my personal name. So, to answer your question I would want it for privacy, extra layers of protection should I need it if someone wants to sue me or take me to court for whatever reason. Another reason is that I am taking on a partner on the next couple deals and we want to transfer the properties we buy into a trust once we close on them. The more I read on the subject the more appealing it becomes to use as tool in this business. I understand everyone does things differently here and some are more creative than others which is why I love this place! Lot's of knowledge to absorb up! Thanks for your input!