All Forum Posts by: Tanner Lewis

I would make a separate entity if the function/assets of the business are different than that of your current entity

I would wait to save up the liquid. If you already have a few deals, it would make more sense to play defensively and not to overleverage

Please do not skip out on good insurance!!!! This is your first line of defense if something goes wrong

I'm pretty sure transferring title into an LLC post-closing will be a violation of the loan documents, which means the lender can call the loan due if they find out. If you want to use the VA loan, I would just go ahead and do it in your personal name and just make sure you have a good insurance policy (the first line of defense).

You can. You will just need a signed lease and possibly a security deposit/first month's rent prior to closing on the refinance since the appraisal will mark the property as vacant. 

I think the main issue here is comps. When you run your comps, are you using comps from when you got the hard money loan, or are you pulling fresh comps before your refinance? I always pull fresh comps when getting ready for refinance (since the hard money comps are likely 6+ months old). Look for same bed/bath count, same property type, and less than 90 days old. Only look at recent sales too, similar properties on the market will not be counted as comps. 

It is a good idea as you can reduce repairs/maintenance and cap ex for the first couple of years. I would just check with your lender to verify that the property will be eligible for refinancing after the construction loan. I have seen a couple of new-build STRs that need refinancing, and they were hard to finance due to their being tiny homes, cabins, rural multifamily (with no comps), etc. 

Hey Carter - I suggest going to local meetups! They are a great way to find potential real estate agent, lenders, contractors, partners, etc. 

In the Atlanta market, I am seeing many LTR SFRs do well. They have moderate cash flow and strong appreciation. If the goal is higher cash flow, I would look at more midwest markets, or some of the Georgia submarkets and rent out the properties as section 8 rentals. 

It sounds like you will be looking for hard money loans, which are a better alternative to conventional loans when you are looking to flip a deal. With hard money, you will no longer be limited to turnkey properties listed on the MLS; you can start buying distressed properties and closing on them in 48 hours.