All Forum Posts by: Ronnie Sparrow

I currently have six rental properties and seven Fannie Mae loans including my personal residence. I was told by my lender which has all six rentals that my interest rate will be 5.25% when I refinance my private money loan. I met with another mortgage company in town and they gave me a verbal quote of 4.3%. I am just wondering why my previous lender which I have a great relationship with would not give me a better rate than 5.25%. I understand that rates are still at all time lows but I am looking for the cashflow I can get.

Maceo, yes all our leases are in the name of the LLC. Treat it like a business with a separate bank account. When you sign checks sign your name , MGR or any position you give yourself in the company. And have a real estate attorney form the LLC for you.

Maceo, my wife and I live in Houston and own 6 single family homes. We have used hard money and private money to acquire our properties. After the rehab is complete and we have a renter we refinance to a 30yr Fannie Mae loan. Once we do that and make a couple of payments we then have our attorney transfer the property into our LLC. The note remains in our personal name but the title is in our LLC. We are familiar with the due on sale clause but our attorney has reassured us not to worry about the lender calling the note due.

Rick, forgive me but I am not sure I understand what being over leveraged is. Can you explain that one to me?

congratulations on your first deal. I recommend you checkout Ben Leybovitch's video on leverage. It is truly eye opening. I have six rentals now and have used zero of my own money on the last three. Actually I did pay closing costs but that's it. Look for private money, it's all around you.

I would stay away from condos period. In my opinion, not a wise investment.

Association fees are too high and cut into your cashflow.

David, great explanation! I want to thank everyone on the forum for helping me out. Until next time.

Thank you guys, sounds pretty simple. The rehab costs goes on the HUD statement correct? And question #2 Why is my lender concerned about his taxes?

Yes, you are correct the seller has nothing to do with my Private Loan. That is between me and my lender. I do have an attorney that is drawing up the paperwork promissory note, deed of trust and other paperwork that he uses to represent me. I may be at the wrong title company?

Both my Private Lender and I need help with how to structure the repair costs at closing. I have used this Private Lender before but the loan did not cover the rehab costs for the previous deals, those costs were paid by me out of pocket. On this deal he is willing to include the rehab costs in the loan but we are not sure how to explain that to the title company. They are wanting me to do an amendment to the purchase contract that states the costs of the rehab. I have used hard money loans before and they have their act together with all the proper wording and such. But for me and me Private guy we are not sure how to proceed with the title company. I am thinking that I would want a separate check for the rehab costs given to me at closing. Another concern my lender has is how it is going to affect his taxes? Any explanation will help.