All Forum Posts by: Akhil Kumar

One thing I want to add is: be upfront with the lender that you'll take a loan in your name, but would like to get the title in the name of LLC at closing or after closing. Most investor friendly lenders will be ok with that. If they are not, don't deal with them, look elsewhere. But get on the same page with bank before getting a loan that you want to retitle to a LLC in future. If you get caught in such a scenario and bank won't allow it, they can trigger a Due on sale clause when you change title owners and demand immediate repayment of the loan. It does not usually happen, but could.

Moral: stay away from such lenders in the first place. 

Totally right on. 

Get the loan in your name. No need to have the partner on the loan. Check out credit unions, community banks. It's a matter to keep dialing until you find someone you will lend to you. 

Since you have a partner, create a LLC. Yes, it costs a bit more. But you'll limit your liability and sleep better. And create a bank account in the name of LLC and do all transactions in that bank account only.

Create an operating agreement when you create the LLC, where you specify the 50% cash and equity arrangement. That makes the agreement legal and enforceable.

Good luck !

As many have pointed out, it qualifies as a residential property if it's <= 4 units, for lending purposes. Also, since you'll live in 1 unit, you'll qualify for the 3.5% down FHA loan.

Great timing, btw. Just last week, Brendon did a webinar on investing in multiunits. It's a very useful resource. 

Thank you ! I will certainly contact them. 

@Nadav Akselrad: Thank you !  Yes, Bank of North Georgia is on my short list of places to check out. Great to get validation. Appreciate your response !

Looking for a local bank in Atlanta area (preferably North Atlanta) who is investor friendly (i.e. is open to real estate loans > 4, who likes to move fast, is open to working with real estate investors). Personal experiences with any such bank will be greatly helpful. Thanks!

Anyone has a recommendation for a PM company for SFH in the Lawrenceville area of Atlanta. If you have personal experience with the PM, that'd be extremely helpful. Thanks !

Hello,

I watched Brandon's webinar on Wed. The one takeaway for me is to analyze 3 deals a day and see if the properties on sale will cash flow. Being a poor newbie, I built a spreadhsheet myself with inputs and assumptions. I wanted to validate my analysis with experienced investors here. The assumptions are listed below. The green cells are inputs I entered manually using info from Zillow. 

At the asking price ($229,000), it's a terrible deal. So, I did a Goal Seek to get CCR to 15% by changing Purchase price and that value is $132,802.05.

Wanted experienced eyes to see if I missed something. Thanks !!!

Here are some questions I have:

1. Is closing cost of 1.5% of purchase price reasonable ?

2. I used Capex of 5%. Is that a sliding scale based on age of property ? Any guidelines on upper and lower limits based on age ?

3. Zillow reports Homeowner's Insurance and Mortgage Insurance. Which is the right one to use for analysis ?

Thanks a lot !