All Forum Posts by: Shawn Dandridge

Interesting Brian, I didn't know that.

Ed,

I have the numbers in a spreadsheet but I am currently at work. City values the properties at right about 360k. She wants about 120k for them all. I wouldn't pay anything over 75k. I am taking into account, deferred maintenance on them as well. From what she has told me, most of her tenants have been renting from her for 15+ years but they are also up in age, some early 60's a couple in 70's.

Ed,

These are properties in low income areas but all located in the same city, which is also my hometown so I am familiar with the people and the environment. I have inquired to her several times about seller financing but she is totally against it. She owns the properties outright and wants to sell but will hold on to them if she has to I suppose. I haven't talked with her in a while but she did call me a few months ago so I am thinking she is breaking down a bit. If she would seller finanance with a little money down I would bite. Rents are around $250-275 on average.

I was reading around the net and read quite a few articles that people use their student loan money to REI. I am active duty army and therefore my college is 100% paid for. I have an investor who is older and wants to unload properties. I want to buy all 15 from her over time but of course need the 20% down payment which is where the student loans come in. The properties produce 3-4k in rents per month as of now.

Setting up multiple LLC's is just a ploy by lawyers to suck every dollar they possibly can from you. What most failt to tell you is that if you don't live in the state you must get a registered agent, which is rougly a $100 a year for a decent one. Next, in states like Nevada and Wyoming, you have to pay $150 per year to file a list of officers. Also new in Nevada this year, home based businesses are no longer exempt from buying a business license. This will run you another $350 per year. So setting up an LLC for each individual property could run you on average of 500k per year. Not to mention the accountant you have to pay to prepare tax returns for each of these LLC's. Note, you must also maintain a seperate bank account for each LLC. The list just gets longer and longer so you get the idea. You' be better offer with a 5-10m unbrella policy.

I currently have a Nevada LLC. The Secretary of State just imposed that LLC's now required to buy a business license in Nevada, even if you do no business there. There used to be exemptions. The total cost of ownership per year would be the business license which is $250 and the annual list of officers which is $125 plus a registered agent fee since you don't live in the state which runs roughly $100 a yr as well. Not worth the cost since my LLC just holds membership units in a foreign llc. You can get the same iron clad protection that a NV LLC offers in Wyoming for $200 a year.

I will try the FDIC bank list route. Never thought of that one. I will be hitting the phones early Monday to see what I can conjure up... But I am still open to suggestions by others. I'm sure I'm not the only person on this forum who has ran into this situation.

Bryan,

It's hard to do a deal with a local bank in Memphis. I am located in Maryland (active duty military). I have been in contact with PNC Bank but of course they won't do a blanket as they want the fees by doing individual transactions.

I have a investor who is looking to get out of the business. She wants to unload 10 properties for around 120k. The properties produce about 5K per month in rent. I am looking for a 5 or 10 yr fixed loan. Can put money down. Any sugguestions? I am located in Maryland and active duty military BTW.

Curt,

Can you please contact me. I tried to send you a PM but wasn't having much luck.