All Forum Posts by: Seth Holmen

 Chris, 

Let me know if I can help you at all. I'm licensed in Illinois and do work in that area.  

Thank you for the clarification. Has there been a further conversation around the LLC lending that you can link me to? Any local CPA or Attorneys in Illinois on here? I'm curious about the movement of funds from a Heloc to and LLC and then back. Or more so if I use extended family as my funding source, how they move funds in and out of an LLC. There must be some tax implications to be aware of here. Does my name need to be disassociated with the LLC for the underwriters not to get concerned?

What are you trying to accomplish? I'm doing work in Orland Park now. 

@Andrew Postell Thank you for keeping this article and thread active. It's been very useful. I had a couple questions and apologies if you have answered these somewhere in the 17 pages of comments. I did my best to search them first. 

I made a little flow chart for my specific situation. I wanted to run this buy you and see if I'm understanding a few things correctly. 

I have the ability to make cash offers from 2 different sources. 1, being leveraging my personal equity and funds. 2, being borrowing money from a family loan.  

The first question is on the Option 1 of using an LLC hard money loan and traditional refinance. I'm assuming this only works if the property is 100% purchased through the LLC? If it was 50% with a Heloc and 50% with hard money then the refinance would only refund the hard money loan that filed the deed correct? Could the Heloc somehow contribute to the LLC and loan the money back? It seems like too many complicated steps that gets into a tax nightmare if not 100% with the LLC. Is there a second creative way I'm not seeing?

The second question is on Option 2. Can the LLC lend money for 50% of the purchase price and be considered "verified funds"? These would be funds that do not have my name attached and have not been sitting in my account for 3+ months.

 Thanks Brandon. So under this scenario could I use a Heloc on my primary residence to purchase the rental property with cash and then refinance into a conventional loan? There wouldn't be seasoning? 

What type of program is this? Still under a residential conventional financing or is that commercial? I would be interested in talking to someone about this. 

I lost out on a 4-unit building with a conventional financing offer. I need to refine my strategy and provide a stronger "cash" offer on the next one. I have a few ways to pull this off but I don't fully understand the timing and loan criteria. Any help here?

I have the ability to offer cash in a few different scenarios. 

1. Hard money from family. 

2. Home equity loan and temporarily pulling funds from IRA or 401K.

My big concern is how can I transition a cash purchase into long-term debt and how long would that take?

A cash-out refinance in an obvious one, but the banks seem less excited about doing that around here and require you to keep more equity in the deal and the interest rates are at a premium over a conventional loan. Also, some are saying they want you to hold the property for 6 months to a year before the refinance. Anything that can happen faster? 

Are there any other creative ways to make this work?  I don't want to keep the cash locked up for more than 6 months. 30-45 days would be ideal.  

Where are these treehouse projects located? I'm an architect in the western suburbs. I have 12 acres of forest and was considering building 1 or 2 treehouse rentals. 

Following. I'm an architect in Illinois and considering building an treehouse rental. 

I built a house in 2017 and looked back at what I paid for a few components. Here is the actual amount I paid vs. the same thing today.