All Forum Posts by: Nick Janovich

I was thinking this but figured it would mean thats loans, bank accounts, etc would need to be in the name of the Ohio LLC.

I just created Fore Investments Ohio LLC as a new domestic LLC in Ohio. The "owner" of Fore Investments Ohio LLC is Fore Investments LLC (the WV LLC.)

Once it is registered I will add the DBA.

Does that all sound correct?  Thanks guys!!

I have an LLC registered in the state of WV, Fore Investments LLC. I have a property under contract in Ohio. So I need to register my West Virginia LLC as a foreign business in Ohio. The problem is that the name is already taken. The Ohio Secretary of State's office recommended that my company do business in Ohio as Fore Investments OH LLC. I would still be registering the WV LLC as a foreign LLC in OH that simply does business under a different name. It would not be a different company (same EIN.)

The part I'm confused on.... does that mean loans, checking accounts, ads, signage utilities, etc need to be in the Fore Investments OH LLC name? Or can I still use Fore Investments LLC? Multiple checking accounts seems like a pain.

Surely I'm not the first person to run into this. 

Hi Brian--

A few things here. 

First, I'm in the Wheeling area as well. The market here is interesting, that is for sure. 

Second, best of luck in your new business. You will learn lots.It has been a year since I formed my LLC and started the hunt. I've learned a ton.

Third, ask 5 people how you should have rentals structured and you will get 5 different answers. Usually no one is terribly wrong and rarely is anyone widely accepted as being right. I have an LLC formed in WV to conduct all my real estate business. I have no desire to mix finances. Having everything in an LLC allows me to run it like a business. In my opinion, this is great since it is..well, a business. As many would tell you, an LLC does not remove all liability from your personal finances. Because of that, I have a $1 million personal umbrella policy written in my name with a rental rider. Between the LLC, the LLC insurance, and the PUP I feel someone comfortable with the liability issues. This was the advice my attorney gave me. Don't pay someone to set up your LLC. You can easily do it yourself. Some on here say LLCs will struggle for loans. Not true at all in this area. Every single bank I talked to would write a commercial loan in the name of the LLC.

Realtors in this area are not very helpful. I have dealt with several. I have lost count of the number of times I've inquired about a property and haven't heard back. They get frustrated when you pass on a property when the numbers don't work. When I look at a property I take my iPad and plug numbers into my spreadsheet. They always look at me funny. Most are use to a SFH going on the market and selling quickly with very little work on their part. Another note, I've not found any deals with Realtors. By the time is makes it on the MLS several people have already passed on it. Price or condition is usually the reason. You'll notice the multi-families on the Wheeling MLS have been there for some time.

I've had luck with craigslist. I bought a duplex on the island that way. I was talking to an investor at the wing fest last night. He said that he has been looking at 35 deals for every 1 that he buys. He has been building due to the lack of good properties in the area.

I'm currently hunting for good land. I'd like to build a 3-4 unit property. 84 Lumber has some good kits available. I also contacted some modular builders. Not sure yet, just another idea I'm always throwing around. 

Any questions, message me. Or add me on Facebook and message me, I won't be creeped out... I'm not on here much. 

Alright so I'm working on my first deal after lots of reading on BP. We were to close on the duplex property December 15. Both units were occupied. The seller rescheduled closing until Jan 6 due to the holidays. On Jan 5 the seller tells me they will not convey the security deposit for the one side as the tenant hasn't paid November or December. I'm not upset about this. The tenant is not someone I would have approved so getting them out is fine. I am upset the seller waited until 24 hours of closing to tell me this. I freaked out and postponed closing until the dead-beat tenant was out.

The tenant is packed up and moving. They have couches and beds there still. Tenant claims she has a truck scheduled for Jan 21. The owner/seller sent and unconditional quit notice on January 12 giving January 22 as the final date before filing eviction papers with the court.

The bank is pressuring to close. The seller has offered a January 24 closing. They have offered that if the tenant isn't completely out at that time they will convey the security deposit to me since I will have to deal with the eviction.

What do you guys think? Should I close and immediately start the eviction process if she is not gone? I hate to lose funding and have the deal fall apart. I know starting with an eviction isn't ideal but it is a deal breaker? Thoughts???

Is it difficult to get a cash out note in the name of the LLC?

I'm currently looking at a foreclosed property. Fannie is requiring that investors have a cash offer. The property is $24,000. Needs about $10,000 in repairs. ARV is $50,000. Not quite the numbers that hard-money lenders want to see. And I don't really want to flip. It is a multi-family property that I want to hold.

I have the $34,000 available in the form of a HELOC on my primary residence that I would lend to my LLC. So purchasing the property and renovating is not an issue. However, I don't want to take years to pay back my personal HELOC. I'd rather have a note in the name of the LLC using the RE as collateral and immediately pay back (most) of my personal HELOC.

Has anyone had any recent luck with a cash-out refi if you own the property outright? I searched the forums and saw some older posts but wanted to see if this is still a common practice. Is there another way I should be approaching this?

He has owned the building since 1965 and, from the sounds of it, he wants a hassle-free sale. He doesn't want to use a realtor. I posted an ad on Craigslist that I was "buying multi-family properties" and his wife responded. I wouldn't even consider it to be on the market. There are few other comps. A similar 6-unit building of 2 bedroom units in the next city is listed on the MLS for $130,000. That's the closest comp I can find.

Just curious, why would you buy it in cash? I have the cash on hand to do so but I wanted to make the deal without touching cash/investments/etc. I thought that using the "sweat equity" I have in my primary home was the best idea. I certainly want to hear you out, though.

 Fantastic thought. This didn't even cross my mind. I understand exactly where you're coming from. Certainly something to clarify if this moves forward.

Alright, so here goes. My maiden post on BP! I've been interested in real estate investing for some time now but have been focused on my primary residence. I purchased it in 2011 for $115k from a bankruptcy. It was built in the 1980s and the structure was good, it just needed some TLC inside and out. I renovated it for $30k. Total investment $145k. It is worth about $175k. I have about $90k in equity in the property. Great, you say, but what does this have to do with a 10-unit deal?  Well...

I'd like to use the equity in my primary home to fund the down payment on an investment property. I've been looking for about 2 months. Mostly at duplexes and triplexes. I really haven't felt good about anything.

Today I looked at a 10-unit building. Asking price is $70,000 but negotiable. Super solid brick building. It has 2 studios and 8 1-bedroom apartments. All are furnished. About half are updated within 5 years. The other half are fine but could use some updates. New roof 3 years ago, new hot water tanks within 4 years, most windows replaced, gas lines just inspected, new boiler pump. There is also a storefront which could easily be made into two more apartments if the demand is there. Currently used for storage.

One efficiency rents for $200 and the tenant is the unofficial manager. He cleans the halls, shovels the walks, unlocks the trash bins, etc. Been there for 42 years.

The second efficiency rents for $300. The rest of the one bedrooms rent for $450. Four of the eight are occupied. Two long-term tenants just died recently and they haven't filled due to wanting to renovate. They put one renovated unit on the market for $500 and had 10 responses in 24 hours but then had a death in the family so they took it off the market. The current owners have owned the building since 1965. They are retiring and moving south. As the husband told me, "I've made my money, time to enjoy it."

Here is my analysis of the deal. PLEASE look it over. I would pay all utilities. Gas is budgeted. Taxes, insurance, and utilities are figures from the current owners' books. I would initially manage the property so the cash flow would really be about $2,000 until I used a PM firm. 

I like the deal. I've seen 60% cash-on-cash with some duplexes but never anything in the 3-digit range. Thoughts?