All Forum Posts by: Neal O.

I have heard this strategy mentioned a few times in the past where one can achieve a greater amount of delayed financing by including your rehab costs on the HUD / closing disclosures. How would I actually do this in practice? Do I just come up with whatever amount I anticipate spending on rehab and ask the agent or title co to include that amount on the document at closing? Is it true that some amount of insurance cost can also be added?

Thanks all for your answers! Seems like it's probably not worth my effort to embark on at this time. Too bad it is so complex.

I am currently in contract on a duplex in a designated Opportunity Zone. In order to take advantage of the tax benefits, what is the process exactly? Do I have to "register" the investment as such somewhere? Or do I just notify my CPA, and then they handle everything at the time of filing my return?

@Eric Veronica I'm probably going to acquire properties on either side of that 50k line actually. So I'm open to speaking to anyone at this stage.

I'm working on doing some BRRRRs in Detroit and was wondering: What lenders do you like to use — both for the initial loan as well as the refinance? 

Interesting, thanks Scott. I'll look into that!

Great feedback here, thank you both. So initially, either one or both of us should apply for the Fannie Mae backed loan in our personal name(s), then transfer title to the LLC. The LLC still offers limited liability regarding anything that happens with the property, tenants, etc. But the downside would be that if we were to default on our loan the bank could come after our personal assets. Does that pretty much sum up the pros and cons of this?

A friend and I plan to partner on buying rental properties. We'll contribute equal amounts of capital up front, share roughly in the workload, and share profits. We will write a proper agreement spelling out all expectations and obligations, and use an attorney to make the arrangement proper and official including a buy-sell agreement, etc.

We can likely buy and rehab our first property with our combined cash and without need for an initial loan, although we may want to get a loan after the rehab to get the cash back out, BRRRR style, and/or for subsequent properties. My understanding is that having the property owned by an LLC is ideal for protection, but it's either difficult or impossible to get a conventional loan as an LLC. So I'm curious as to the best way to structure our arrangement and hold title in the properties. Should we form an LLC together, and if so how do we deal with holding title and applying for loans?

We both live in California and are planning to invest in Michigan.