All Forum Posts by: Shaun R.

according to their accountant, the 36% return is net of fees. 

here is the info I received : 

"To answer your question as succinctly as possible, on January 1, 2020 we were still selling shares at $10.00 per share. Your sample $10,000.00 investment would have purchased 1,000 shares. As of January 1, 2021, we were selling shares for 13.67 per share. The increase was $3.67 per share, which is 36.7%. Your 1,000 shares would carry a value of $13,670.00 as of January 1, 2021.
Our price per share is calculated as follows:

• Total value of all assets (LESS) Total Liabilities (EQUALS) Net Asset Value (also referred to as Net Equity).
• Net Asset Value (DIVIDED BY) Total Number of Outstanding Shares (EQUALS) Net Asset Value Per Share (aka Net Equity Per Share or Book Value per Share).
• Our Net Asset Value per share becomes our new stock price per share. Calculations are made quarterly, within one month after the end of each quarter.

No recurring distributions or dividends have been paid to date. If you have any further questions or comments, please feel free to reach out. Thank you for your interest, and we look forward to working with you."

I will try to keep this as brief as possible :

Partner and I purchased 2 rental properties in Florida with cash under one LLC (lets call this LLC 1).

Now looking to do a cash out refinance and having trouble for a multitude of reasons :

1.) Property is a short term rental

2.) Property is titled in an LLC and not to us as individuals

Therefore, from my understanding, the property does not fall into the commercial property or residential property guidelines and is not a good fit for any form of traditional financing.

After speaking to a commercial real estate banker with Wells Fargo he advised us to use the existing LLC 1 as an operating company and transfer the titles to a new LLC that acts as a holding company, which we will call LLC 2 and LLC 3.

Have LLC 1 lease the properties from LLC 2 and LLC 3 and pay them a fixed rent amount. These properties could then possibly meet the guidelines for a portfolio type loan.

I think the strategy behind this is to leverage the existing one year of tax returns on LLC 1 and then the operating history of LLC 1 could function as a "secondary form of repayment" in conjunction with the fixed lease in place. As individuals, my partner and I have strong PFS's and I think will almost certainly need to personally guarantee the loans.

I think we have a very solid model going with each property generating around $4500/month with costs well below $2000/month.

Our goal is to get cash out of these properties (appraise for $300k each). Ideally a 70-80% LTV on a 10+ year note at less than a 5% interest rate with low closing costs. (Is this too optimistic?)

We would use this cash to :

1.) Fund acquisitions across the US with a focus on multi-family buildings

2.) Rehab other buildings in our portfolio

Ideally we'd love to form a long term relationship with a lender where we could leverage the existing equity in our portfolio to acquire and rehab in a BRRRR type method.

Questions :

1.) Does this sound like a good strategy to quickly and efficiently (low cost) get some cash out of these properties?

2.) Is there any other strategy we should consider that would be faster/less expensive?

3.) How difficult is it to transfer title from LLC 1 to LLC 2 and LLC 3? Is it expensive? Are there any risks associated with doing this? Properties and existing LLC are in Florida.

Thank you in advance for the time and help!

I will try to keep this as brief as possible :

Partner and I purchased 2 rental properties in Florida with cash under one LLC (lets call this LLC 1).

Now looking to do a cash out refinance and having trouble for a multitude of reasons :

1.) Property is a short term rental

2.) Property is titled in an LLC and not to us as individuals

Therefore, from my understanding, the property does not fall into the commercial property or residential property guidelines and is not a good fit for any form of traditional financing.

After speaking to a commercial real estate banker with Wells Fargo he advised us to use the existing LLC 1 as an operating company and transfer the titles to a new LLC that acts as a holding company, which we will call LLC 2 and LLC 3.

Have LLC 1 lease the properties from LLC 2 and LLC 3 and pay them a fixed rent amount. These properties could then possibly meet the guidelines for a portfolio type loan.

I think the strategy behind this is to leverage the existing one year of tax returns on LLC 1 and then the operating history of LLC 1 could function as a "secondary form of repayment" in conjunction with the fixed lease in place. As individuals, my partner and I have strong PFS's and I think will almost certainly need to personally guarantee the loans.

I think we have a very solid model going with each property generating around $4500/month with costs well below $2000/month.

Our goal is to get cash out of these properties (appraise for $300k each). Ideally a 70-80% LTV on a 10+ year note at less than a 5% interest rate with low closing costs. (Is this too optimistic?) 

We would use this cash to :

1.) Fund acquisitions across the US with a focus on multi-family buildings

2.) Rehab other buildings in our portfolio

Ideally we'd love to form a long term relationship with a lender where we could leverage the existing equity in our portfolio to acquire and rehab in a BRRRR type method.

Questions :

1.) Does this sound like a good strategy to quickly and efficiently (low cost) get some cash out of these properties?

2.) Is there any other strategy we should consider that would be faster/less expensive?

3.) How difficult is it to transfer title from LLC 1 to LLC 2 and LLC 3? Is it expensive? Are there any risks associated with doing this? Properties and existing LLC are in Florida.

Thank you in advance for the time and help! 

I will try to keep this as brief as possible : 

Partner and I purchased 2 rental properties in Florida with cash under one LLC (lets call this LLC 1).

Now looking to do a cash out refinance and having trouble for a multitude of reasons :

1.) Property is a short term rental

2.) Property is titled in an LLC and not to us as individuals

Therefore, from my understanding, the property does not fall into the commercial property or residential property guidelines and is not a good fit for any form of traditional financing.

After speaking to a commercial real estate banker with Wells Fargo he advised us to use the existing LLC 1 as an operating company and transfer the titles to a new LLC that acts as a holding company, which we will call LLC 2 and LLC 3.

Have LLC 1 lease the properties from LLC 2 and LLC 3 and pay them a fixed rent amount. These properties could then possibly meet the guidelines for a portfolio type loan.

I think the strategy behind this is to leverage the existing one year of tax returns on LLC 1 and then the operating history of LLC 1 could function as a "secondary form of repayment" in conjunction with the fixed lease in place. As individuals, my partner and I have strong PFS's and I think will almost certainly need to personally guarantee the loans.

I think we have a very solid model going with each property generating around $4500/month with costs well below $2000/month.

Our goal is to get cash out of these properties (appraise for $300k each). Ideally a 70-80% LTV on a 10+ year note at less than a 5% interest rate with low closing costs (<1%). Not sure if this is a bit too optimistic?

We would use this cash to :

1.) Fund acquisitions across the US with a focus on multi-family buildings  

2.) Rehab other buildings in our portfolio

Ideally we'd love to form a long term relationship with a lender where we could leverage the existing equity in our portfolio to acquire and rehab in a BRRRR type method.

Questions :

1.) Does this sound like a good strategy to quickly and efficiently (low cost) get some cash out of these properties? 

2.) Is there any other strategy we should consider that would be faster/less expensive?

3.) How difficult is it to transfer title from LLC 1 to LLC 2 and LLC 3? Is it expensive? Are there any risks associated with doing this? Properties and existing LLC are in Florida.

Thank you in advance for the time and help!