All Forum Posts by: Shawn Elrod

@Karl B.

Yeah, I am hoping that since he proactively told me about it that he won’t be doing it again and is worried about losing the apartment.

@Nathan G.

Great ideas! Thank you!

@Filipe Pereira

It’s been too long since I’ve experienced a crazy story. I was definitely due for a curveball.

I was sitting down for dinner this evening when I heard my phone going off with multiple messages coming in back to back. As I check it, I am shocked to read the following.

“Hey Sean. I made a big mistake and did some drugs the other night. Haven't slept for three days, and getting paranoid! Sorry, it won't happen again! Haven't done it in over 10 years?”

“I might have to go to MVH and get a benzo injection.”

“Thought I'd tell you before you heard it from someone else! It's been a HORRIBLE three days!”

“I haven't done any substances in over 10 years. I was a big meth head back in the day! Don't know what made me think I could try it again! It's NEVER kept me awake like this! I feel miserable and can't sleep at all! Like I said, won't happen again!!”

To which I responded, “I hope you are okay and can get the help you need. You should seek help immediately!”

He responds, “Yeah, I'm fine, thanks! Just a bit paranoid! I'll probably end up going to MVH for a Diazepam injection if I don't fall asleep any time soon.”

My question for BP is...Now what?!? He has been a great tenant for the last two+ years. Has/had a decent job. (Not sure he will after this) He keeps his place nice, pays on time, and overall just seems like a decent guy. Do I wait and see if this turns into a problem? Do I try to get him out ASAP? Do I try to get him lined up with help?

@Curt Smith

Great points Curt! I felt like this was getting out of my league and you just confirmed that for me. I will dig in with the attorney handling the title work. Thanks for responding!

All my previous deals have been purchased and financed through my LLC. But I have four triplexes in contract right now that I am wanting to finance in a conforming 30 year mortgage to get the best possible rates and improve the cash on cash return. My contact at my credit union suggested I have them deeded in my personal name then quitclaim the deeds to my LLC.

Is there a downfall to this?

What am I missing?

@George Despotopoulos

Thanks for the info!

@Stephanie P.

Thanks for the information!

I always thought I had decent loan terms on my buildings but with the recent rate drops and reading some forums on here, I am starting to question if I am doing this wrong.

Here is my setup.

All of my buildings are owned by my LLC.

I personally have great credit, but I am pretty tapped out on Debt to income due to my wife not working, so both cars and our personal residence are in my name. My LLC owns a 6 unit and a 4 unit free and clear, four other building have loans.

I use private financing to make cash offers on MF buildings then refi through my local credit union.

I have a 10 unit, 6 unit and 4 unit all with a 5/1 ARM, 10 year ballon, 20 year amortization, current rate of 5.25% (set to start adjusting in 2 years). This was my first set of loans with the credit union so I thought it was decent considering it was a new relationship. I'm pacing to have these three loans paid off in 7 years so I can quit my day job.

About 6 months ago I was able to get a 15 yr fixed at 4.5% on a four unit.

All new loans I am wanting to stretch out as long as possible so I can maximize my returns.

I guess my question is, is it possible to get a 30 yr mortgage on buildings that are owned by my LLC with rates in the low 3%'s? It seems people on here are getting these rates, but how?? My credit union only wants to do 15 or 20 years max and with rates in the 4%'s.

Thanks in advance for any ideas or advice.

@Brendan Chisholm

This is a lesson I had to learn the hard way. Luckily it was just a 10 unit that went from being a really great deal, to just a great deal. This changed my approach to 1) Always assume the taxes will increase after the transfer. 2) I now write in an addendum to purchase all of the personal property separately. I have also considered paying for “good will” as some of the purchase price but have yet to get a deal with this In there. I know this would likely have some impact on depreciation as well as refinancing.

Curious if anyone else uses this strategy and what are some of the pros and cons they see?