All Forum Posts by: Ron Czecholinski

Curtis Bidwell - are you saying you have an LLC for your partnering agreements. Are you able to indicate equity claims in the LLC for property that is not held in the LLC? I'm all for simple but need to be able to establish equity with his investment.

I've read quite a bit about the issue with subject 2s  but not much about LLCs where the mortgage holder is involved. Is that often an issue? Does it make sense to inform the bank (Wells Fargo) Can a personal agreement secure equity in the property for my partners investment? Would some kind of lease / option be an appropriate tool?

I am converting a property that I have a personal mortgage on into a rental property. I would like to put it into an LLC and bring a partner in who would share equity through the LLC. I am looking for input on the best way to structure this without triggering the due on sale clause in the mortgage.

Anybody have any thoughts on this? I have checked with a couple attorneys and escrow companies (and google) and can't find any templates for loan agreements that would work for new construction.

I am doing this as a series of loans, each with different collateral. It is a small project, and I am able to do this in a very simple bootstrapping way.

My first investor is loaning me money for the land and infrastructure with a lien on the land. The second is loaning me the money for building a spec house with a lien on that house.

The land part was easy but the infrastructure and new construction is a bit more complex. I need an agreement for a construction loan that deals with fund dispersements, problems / default during construction, and other related issues.

I am working on my first small development (10 houses) and putting it together with private money. I have purchased the land and have some interested investors. I am now looking for insight on putting together agreements and handling escrow / draws for infrastructure and construction loans.

I have been looking for a simple construction loan agreement and not finding much except from a local bank which seems much more complicated than necessary. I am also wondering if there are other agreements that I need.

I also am looking for a way (if possible) to handle the escrow and draws without paying interest on unused money.

I am working on a small development and am looking for templates for private money agreements. I am finding it difficult to come up with one for a construction loan with all the related issues. Even my attorney doesn't have access to anything and says we need to create it from scratch. Anyone know where I might find one?

Thanks
Ron

Can you upgrade that 2 cents to a nickle Rob, and let me know what you don't like about the multi-unit and what you think might be a better way to work the deal?

Interesting idea Brian - actually similar to what I am working on. I am connected to a network of single Boomer women that want to downscale, have companions, share house responsibilities, etc. (Golden Girls style). This house works perfect and could be a model for other projects. It provides 350 to 650 sq. ft private suites and 1000 sq. ft of shared space. The 5 suites will range from $500 to $900 and should have decent cash flow.

A cash rich partner is also a great idea - I still don't know how to put the deal together to control the property with the current mortgage more than the selling price. The only solution might be for the owner to refinance, if he can, and absorb the excess into another property. Then I could possibly lease purchase and get the partner.

I think refinancing will be a problem and still hoping for another option. That might be a pipe dream.

The problem with a short sale Jackie, is that the owner does not want to mess up his credit and I am not able to put the financing together to purchase. I am hoping to come up with something that utilizes the owners financing that is in place as well as minimize my risk.

Would loan modification be an option to get the mortgage down to the current reality if the owner is not having a problem with payments?