All Forum Posts by: Ross Yeager

@Scott Smith great tips. I ended up assessing that the risk wasn’t worth the reward and passed on the deal.

@Brett Goldsmith yeah I think there’s generally high risk that the bank will dissolve this, and am definitely prepared to disclose new ownership, will proceed with caution. Looking to finance it anyway and most private lenders won’t go near this type of deal

Looking at purchasing a short sale through LLC purchase and wanted to see what all the community recommends for validating the LLC (the bank has agreed to sell the short sale to an entity)?

What ways do you use to vet out the LLC to ensure you're not purchasing an LLC with tons of liabilities?

I was going to

• run a credit check
• get state's issuance of good standing
• title/lien checks on the property 
• check the LLC age

Is there was anything else you'd recommend? Should I also run a background check on the owner of the LLC (it's a sole proprietorship). What else should I be looking out for here? 

I've been successful at 100% financing (in a practical way) executing a BRRRR business plan through the combination of:

• Private money loan (high interest, but refinance out after the rehab)
• Personal loan or line of credit for the remaining balance (long term 2+ years, low interest ~5-6%, interest only)

This is a much more practical approach in my opinion, but is dependent on a few things:

• good credit
• not buying properties that would make my DTSR at a dangerous level...i.e. worse case scenario i can afford all payments
• income that supports the previous point

The management company has an agreement with me personally not with the LLC. I also have the rental license under my name. I also own the property under my name. What is useless/incorrect is that I also have a rental license for my LLC (b/c I was considering moving everything under the LLC).  I am no longer doing that so it looks like the only thing I need to do here is void the LLC rental license. Thanks for all the help everyone!

@Chris K. I also have the license in my personal name right now as well (since I set up the LLC and just finished registering it). Will revoke one or the other so that's probably what I should focus on finding out.

@Scott Smith thanks! Coincidentally I actually will be working with your firm here in the next few weeks...connected through Brian Bradley! Looking into DRT.

@Chris K. I do have a professional property management company actually managing the property, but the city still requires that I have the license either under the LLC or my name, so I purchased it under my LLC. Thanks for the insights would love to connect!

@Phillip Behrens, thanks for the post.  I am in the same situation with a property in Philadelphia.  

I bought a duplex in an all cash purchase. I then established my LLC and have been acquiring new properties under its name. I have been advised by some people to put the original property under my LLC and others tell me to leave it under my personal name. Was looking into putting it under the LLC, but the transfer taxes and fees make it seem not worth it to me, especially since I have a solid insurance policy and only have one property under my name. The only reasons I would consider it would be to qualify for some private loan if I didn't want the loan to be under my personal name or if I was looking to finance a property before the seasoning period.

One of my properties is a rental property in Philadelphia, PA. I also have an LLC, but this property is not owned by the LLC (separate discussion). I currently have the property management, rental licenses, all under my LLC, but the property itself is not owned by the LLC.

1) Is there anything fundamentally wrong with that (separate from the fact that I have personal liability on the property since it is in my name)? In other words, is the LLC able to have a rental license on a property that is not "owned" by the LLC?

2) Assuming that is OK, do I get any additional liability protection from the LLC holding the rental license, or is that all based on the property owner? I imagine it exclusively has to do with the owner, but figured I'd ask.