All Forum Posts by: Robert Washington

Facebook is a great tool

Anyone that says anything in the housing market is 'impossible' probably isn't worth listening to or are very new and get a little too swept up in articles written by people with something to gain.

@Robert Washington a few things to note first. Can you clarify what you mean by banks as some folks put chase bank and non QM lenders in the same category as bank. 

Closing in LLCs are not an issue in the 1-4 unit business purpose space. These loans do require warm bodied guarantors but vest in business entites.

If you are mixed use, 5+ MF, commercial, etc this is where you would need to connect with someone who is knowledgable on the state specific rules. NV specifically needs a state licensed, brick and mortar shop to originate loans.  @Bill Schrimpf sounds like your guy who knows the circles in NV. 

Keep us posted on what you find out. 

 Hey Robert, 

Likely a DSCR loan may work if you are able to put 20-25% down. You would have to carry the loan in your personal name and close title under the LLC.

What's the purchase price? And is it an SFR, 2+ Unit? Happy to connect.

@Robert Washington - From your question, I'm assuming this would be a new entity, and you have not done this before. What kind of property, SFR or commercial?

It may be difficult to obtain a mortgage note in the LLC name, particularly using series LLC. The harder it is for the lender underwriter to understand the ownership, the less likely they are to approve. For SFR's, if you're looking to shield liability, you can purchase in your name and transfer the asset to the LLC. A good attorney can do this for a nominal fee.

I'm not a lender, but if you would like the names of some in Reno that work with investors, give me a call.  We can discuss your goals and I can refer you on to 2 or more lenders that may be a good fit.

Are you just now starting out? Running a series LLC is good on paper, but in practical terms, it may be cumbersome and expensive.

The benefit of the Series LLC is that, generally, you have all of the benefits and protection of multiple LLCs, with a lower maintenance cost that would be similar to having a single LLC. There is some variation among the different States that offer the Series LLC, but you will likely only being paying for a single registered agent and single annual State compliance (if applicable). I agree with the statement above that maintaining the Series LLC will be easier than having mutiple LLCs, but slightly more complex than having a single LLC.

For every LLC you create, there are costs for setting it up and maintaining it, separate bank accounts, separate credit cards, separate tax filings, more paperwork, etc. It becomes a nightmare to monitor.

If you feel the need for multiple LLCs, set up a series so the properties are split up but you're not over-complicating your life.

@Robert Washington - What do you hope to gain by running a series LLC? Series are easier than several regular LLC, but it's still more to do than a single LLC.