All Forum Posts by: Ryan Parsley

Thanks for the reply! I have a preapproval already and have posed this question to my lender but of course I emailed them after hours so I've been working through this in my head and figured I'd reach out for general thoughts.

What are your thoughts on buying with cash to be competitive with the offer in a multiple offer scenario and then finance the property immediately after closing to get the cash back? Property needs work, our plan would be to renovate with the funds returned after the financing. Fully aware that we would be at the mercy of the appraisal but trying to think of ways to be competitive to a seller when multiple offers are expected.

@Mike Klarman I appreciate that guidance. A little more background on my situation might help too! My father is a former contractor with experience in new builds and renos and in his later years was a building inspector. He has completed a few flips before so I guess its fair to say it is my first but he is bringing a lot of experience to the table. In his experiences he mostly used partnership llc's with cash. 

@Ryan Muska I'm starting to think the same as I read more and more posts in other threads. I've been discussing this with various personal and professional contacts and I continue to get mixed answers. Most commonly I'm hearing keep it simple, this is your first one, get adequate insurance and do it using your name. I'm realizing I am making this much more difficult than it needs to be after watching too many youtube videos!

With that said...

How should I manage the expenses and profit from the sale or income if I were to end up financing it and renting it? For expenses is it as simple as keeping track of expenses in an excel file for my CPA and keep my receipts? For income would I do the same and then provide my CPA with the income for inclusion in my income on my taxes? I have the LLC and will have a business banking account, just not sure if I should use it or not if i'll be using my name to buy it.

@Erik Estrada I had not thought of a DSCR, that's a good idea to consider. Thank you!

Hi all, maybe not so much a dilemma but i'm having trouble finding answers and cannot get an appointment with my attorney for another week or so. 

Background- Just starting out, have a fix and flip in sight. I have created my LLC and am finalizing my business banking account on Monday. My initial funds are from a personal HELOC and a loan from my parents. The property I am looking at is offered as cash only, fortunately, I have the funds between the HELOC and loan from my parents to pay for the property and estimated rehab, holding, and closings.

I'm on the fence for how to buy, primarily because my backup plan is to use this as a long term rental property if I cannot sell it within an appropriate timeframe which will require securing a mortgage to pay back the HELOC and parents loan. If I buy using the LLC, I will probably have trouble securing a residential mortgage later on, correct? If I buy it under my name, it should be less difficult to secure a residential mortgage as long as my income can support the payment, correct?

How would you proceed? Is there something I am missing here and aside from the liability protections under the LLC what am I setting myself up for in terms of taxes, etc?