All Forum Posts by: Erin A.

Wouldn't miss it!

Sending you many congratulations, J! How awesome! You've worked hard for this and deserve every moment of freedom. Enjoy! We need to connect soon -- a lot has changed on my end and I'd love to bring you up to speed.

My BP colleagues come through yet again with great insight and advice. Thank you!

@Matt Motil Yes, the LLC is taxed as a C-Corp.

@Jeff Lezark If I provide the mortgage broker with the promissory note showing monthly payments of $100, is that the amount they'll use for my DTI?

@Albert Bui Thanks for your input on this -- I had no idea. Things get really complicated really quickly. Ha!

@John Wielgolinski Totally get what you're saying.

Hey BP,

I am sole managing member of my LLC, which currently owns a property that was financed by a private lender (friend of family). I need to sell this property for less than what I owe, so it would be a short sale. The private lender and I have agreed to carry the debt I'll owe forward, so that the profits I'll make on my next flip will be used to pay the debt owed from the short sale.

Meanwhile, I'm working with a mortgage broker to refinance a triplex I own in my own name. She informed me that my LLC's debt from this short sale will count in my personal DTI ratio EVEN THOUGH my LLC is taxed as a corporation and does not pass through to my personal taxes.

Is this true? Many thanks for your input.

@Account Closed,

Fortunately, I was able to use gifted funds from a family member and everything went smoothly thereafter. Are you considering buying a multifamily property using FHA?

Erin

Hi @Joseph Chui, will do!

Can you provide some info on what you are looking for? Property type & characteristics, acquisition price range, rehab price range, desired profit, etc. You can send me a private message if you prefer. Thanks!

Erin

Thanks very much for getting in touch, Peter. Yes, the Bay Area is tough! I will certainly add you to my list. Good luck!

Erin

Hey @Daniel I., very cool! I had considered doing an essay contest at the outset of my explorations of actually "selling" the house in this way. The link I shared in my original post about the B&B in Maine being given away was also an essay contest, which is what inspired my iteration of the idea. I love to cook, and especially love to bake desserts, so I figured reading through thousands of dessert recipes would be more fun than reading thousands of short essays. :-P As it turns out, I won't be involved in the judging process after all, as a way to ensure that the judging is impartial. Instead, I'll be choosing judges from a network of pastry chefs, food bloggers, home cooks, etc. 

And similarly to your mention of the $400 sale price, the sale of my house will actually get recorded for $1, and I'll give the winner the $1 to complete the purchase. (I'm covering all closing costs.)

I'm so excited, I could go on and on... but enough for now!

Erin

Thanks, @David O.! Hoping to gain some traction in the next couple weeks. We are just starting our first round of publicity/media outreach with the aim of getting a major newspaper or online source to give credence to the contest. Fingers crossed!

Ha! Thanks, @Brian Burke! And funny you mention cookbooks—I'm actually thinking of compiling some of the better recipes and making them available to the public once the contest is over.  :-)

There is the possibility the entry fees would amount to a sum larger than the market value of the house (one can dream!). I figure I need about 3,700 entries to break even. In California, a contest Sponsor cannot state a minimum number of entries required, but the Sponsor may cancel the contest at its sole discretion (and return the entry fees, of course). I've worked several deadline extensions into the official rules, so I have about 4 months total to run the contest if I need it.