All Forum Posts by: Sarah Brown

The first leap is always the scariest!  I started by moving into my first investment.  I bought it and moved in knowing it was going to be an investment.  It also allowed me keep as much money in my pocket as possible.  Get a good agent or mentor on your side and have them walk with you through the process 

Running comps is as much art as it is science.  I do things different than Abel, that doesn't mean either of us is wrong.  I start by location, age, and home size.  Then I add in value for the additional land.  I only give number of rooms a glimpse.  In our market, a 4 bedroom may not net more than a 3 bedroom if the sq ft is the same.  An appraiser also doesn't give value for the extra bedroom, only the extra sq ft.  I would recommend getting a good agent on your team to help you with this and what is best for your area

I would NEVER recommend waiving an inspection unless it's SUPER deal, and you have ample cash in the bank.  I am struggling with this right now because people are doing it, and I just can't put my buyers in that situation.  The risk is too great. 

I always MAIL a welcome letter with instructions on how to pay.  I then follow up with notice of walk-through.  It gives me an opportunity to see the unit and introduce myself to the tenant.  I never start with email communication.  

I would just post a non-renewal notice to vacate.  The eviction moratorium is only for people who can't pay rent due to covid.  That doesn't mean you can't give notice to vacate. 

All I get very time I post on FB is people complaining about rising rent prices.  Not worth it.  I get way better return on Craigslist and other sites my software syndicates to. 

Hi Corey!  Some additional insight below.  

I currently hold a property in an LLC without any partners. I am getting ready to buy another investment property with the same criteria as the property in this LLC and would like them to be grouped together for financial reporting etc.

I will be purchasing this property with a partner. Can we buy with my current LLC that holds an asset my partner has no ownership in? Perhaps I can have my attorney draw up a partnership agreement for individual properties within one LLC? I would start a separate entity with your partner.  Your partner can be listed as a managing member with your current LLC on the new LLP (Limited Liability Partnership).  Probably a good idea to have a simple operating agreement that spells out the ownership of each individual on the LLP 

Also, if the partner is carrying the financing, should I be on the mortgage? As a co-signer? Does it matter? In my knowledge it shouldn’t, as long as I am represented on the Title of the property.  Depending on what state you are in, ownership is in the title, not in the lending.  Adding you to the financing would be more of an operational agreement between you two than an ownership stake.  Keep in mind if something happens to your partner, that lien doesn't magically go away.  You will need to have a contingency plan for this type of situation. 

I will be helping my partner secure financing and will walk them through the bank process. If we get a traditional loan, is it possible to get financed with a partner under an LLC?  Most banks won't loan to an LLC, only individuals.  A commercial loan will generally loan to an LLC, but if you start a new one it will have no credit and you will need to personally secure the debt. It may be worth securing the debt in the personal name and titling in the LLC. 

My partner doesn’t have any real estate holdings and will qualify for traditional financing. I like the low rates and long-term loan as we are going with a buy and hold 5-10 year strategy.

Or is commercial lending the route to take with partners? The current property held in this LLC was financed by a commercial loan.  This is 100% property dependent and dependent on long term strategy. If the property is 5+ units, you will have to go commercial. 

I would reach out to the title company.  They generally have generic purchase and sale contracts you can use and can help you through the process.  They have to be involved anyway. 

I don't believe you are allowed to pay with a credit card.  I think it has to be certified funds.