All Forum Posts by: Account Closed

@Angelique A. I’ve always wanted to... I think they’d be a great for a little getaway in the woods somewhere..

**EDIT**

Just to clarify (and BP won’t let me edit original post). This is currently ONE parcel that needs to be sub plotted before I purchase (owner is only wanting to sell me back half of property). I can’t buy it before it’s sub plotted, but can’t sub plot it until the work is done...thanks

I need some direction guys and gals... I have a bare lot I’m hoping to buy, decent price, decent size and within city limits. Owner and I have an agreed-upon price. Problem I’m having is, in talking with the city, utilities and access road (along the easement) need to be installed prior to sub plotting the parcel. I need some help on writing up a contract to where if I put out all the money for that work, the seller can’t back out, and at the same time have the negotiated price put to paper.

Any help with this would be appreciated. Thanks!

Thank you for the responses! So yes @Account Closed I am curious what the process was for you. Obviously an appraisal needs to be done, and while the article you referred to really opened my eyes, the mortgage servicer seems to know nothing about the rule. They are saying that I have to basically refinance it in order for me to assume the loan. And of course they won't lend to a newly formed LLC on a SFR. I explained that no modifications would need to be done, and that the cash flow would be significant, not to mention the 60% equity there would be. But I may potentially have an issue if it comes down to refinancing due to timing of this whole thing (of course nobody is ready for a parent to die...) but because I am right in the middle of flipping another house, and although I paid cash for it, I have a bunch of "stuff" that may show up on a credit report (the HELOC I use for rehab funds, Lowe's, Home Depot, etc.) and am afraid my DTI might be getting tight. But, let's assume they have an epiphany and I am able to just assume the loan as-is, could I do a warranty deed in the name of my LLC? Seeing as though I wouldn't have to qualify, wouldn't it make sense seeing that it is usually very hard to get financed for anything with a newly formed LLC? This way, my LLC would have equity behind it, show cash flow, which would potentially make getting financing easier the next go-round. Your thoughts? Thanks!

So I’m in unfamiliar territory here in regards to an inheritance, so I figured who better to ask than the experts here. Here’s my situation:

Unfortunately my father passed away a few weeks ago, and my sister and I are the two beneficiaries of his estate. No probate court, no other beneficiaries, just her and I. My sister (who is the executor) doesn’t want the house, and myself being a flipper for the last 15 years or so (as well as looking to add another rental to my portfolio), thought it would be great to just cash her out her half of the equity and keep the house as a rental. But, in order to do that, I would probably have to do a cash-out refi.

My dad owes about $125k and the house is valued around $290k, so if I CO-refi'd I would only need to pull about $60k (and the rest I'd owe her i'd pay her cash out of pocket). I would still have a ton of equity, so I'm fine with it. But can I (or rather, should I) refinance it under my newly formed LLC, or just go conventional and quit claim it to my LLC? Personally, I'd rather keep it out of my name from the get-go, but i have yet to do any business through my LLC, so doing it this way has me a bit confused.

Another option is that I can “possibly” assume the loan as-is. I’d have to have his current lender “approve” me, but they told me that doing this would essentially just remove my dads name off the loan and my name would go on it. Same loan number, same terms, same payments, etc...

I’ve never heard of this, but it does sound enticing as his interest rate is in the low 3’s. Doing it this way though, I’d have to come up with even more cash out of pocket, and I don’t want to leave myself cash poor either.

My sister should have all the required paperwork to be able to put me on title next week. But this where I'm stumped. What should my next step be? Who's name should she put on title? My name? My LLC? I was also told by my CPA that I need to "reset basis" for future tax issues (for when I sell it sometime in the future), so that's another question I have no answer to. I have also been advised not to quit claim it, but do a warranty deed instead. Totally clueless there...

Anybody have any experience in something like this? Im really stuck on how to proceed, and the attorney I consulted with today wasn’t able to paint any sort of clear picture for what I should do. But I did snag a pretty sweet pen. Lol.

Any help, suggestions or recommendations would be greatly appreciated. Thanks!

So I’m in unfamiliar territory here in regards to an inheritance, so I figured who better to ask than the experts here. Here’s my situation:

Unfortunately my father passed away a few weeks ago, and my sister and I are the two beneficiaries of his estate. No probate court, no other beneficiaries, just her and I. My sister (who is the executor) doesn’t want the house, and myself being a flipper for the last 15 years or so (as well as looking to add another rental to my portfolio), thought it would be great to just cash her out her half of the equity and keep the house as a rental. But, in order to do that, I would probably have to do a cash-out refi.

My dad owes about $125k and the house is valued around $290k, so if I CO-refi'd I would only need to pull about $60k (and the rest I'd owe her i'd pay her cash out of pocket). I would still have a ton of equity, so I'm fine with it. But can I (or rather, should I) refinance it under my newly formed LLC, or just go conventional and quit claim it to my LLC? Personally, I'd rather keep it out of my name from the get-go, but i have yet to do any business through my LLC, so doing it this way has me a bit confused.

Another option is that I can “possibly” assume the loan as-is. I’d have to have his current lender “approve” me, but they told me that doing this would essentially just remove my dads name off the loan and my name would go on it. Same loan number, same terms, same payments, etc...

I’ve never heard of this, but it does sound enticing as his interest rate is in the low 3’s. Doing it this way though, I’d have to come up with even more cash out of pocket, and I don’t want to leave myself cash poor either.

My sister should have all the required paperwork to be able to put me on title next week. But this where I'm stumped. What should my next step be? Who's name should she put on title? My name? My LLC? I was also told by my CPA that I need to "reset basis" for future tax issues (for when I sell it sometime in the future), so that's another question I have no answer to. I have also been advised not to quit claim it, but do a warranty deed instead. Totally clueless there...

Anybody have any experience in something like this? Im really stuck on how to proceed, and the attorney I consulted with today wasn’t able to paint any sort of clear picture for what I should do. But I did snag a pretty sweet pen. Lol.

Any help, suggestions or recommendations would be greatly appreciated. Thanks!

Like @Joe Villeneuve said, narrow down a specific area. If you haven't heard the term "driving for dollars" you should look it up and give that a try. Drive around the neighborhoods and look for crappy houses, that's how I find at least half of my deals (rarely do I find deals on the MLS). Then find out who the owner is and get in touch with them. Either find their phone number in the phone book, write them a letter, find them on social media, heck, knock on their door (be careful with that method though, I can tell ya some stories, lol).. and be direct about what you're looking to do. You may get hung up on or get the door slammed in your face 99 times out of 100, but that 100th one might be a great deal.

Dave Foster Could you send that road map to me as well? I am in the exact same situation. Thanks!

Jeremy Taggart I have thought about that, but HELOC rates are crazy high right now (like 7-8%). But Refi’s aren’t bad. Maybe I’ll cash out refi... id lose a couple hundred in cash flow each month, but I wouldn’t be paying $200-300 per month on an interest only HELOC... hmmm

I’m having a hard time deciding whether I should keep renting a SFH I have, or keep renting it out. I have owned it for three years (bought it at a VERY good price) and have over $100k in equity. The current (3 year)tenant is moving out Oct. 1st, and while I cash flow $400/month on it, I’m thinking I may want to sell it and use that $100k to buy a couple of duplexes instead. The house has 17 years left on the mortgage (FYI). What would you do?