All Forum Posts by: Todd Rasmussen

Find him a place to move to. If you solve his problem, chances are he won't care that you solve yours at the same time.

@Troy P.

What's the interest rate on your underlying debt and does she have a down payment? Doing a wrap is a little bit of effort, but well worth it to continue to capitalize on a great interest rate.

@Brandon Auberry

If something is not being bought, it's not the investor as much as it is the deal.

@Robert J.

HELOC on their primary is the easiest and least expensive money they can borrow unless they are looking to sell a rental. There's generational wealth transfer and tax considerations as well to consider as these types of transactions can by synergistic if done properly. Contracting and flipping are both high effort enterprises as is having a new baby. Make sure to focus on what's most important and not what's most urgent for the next few years.

Them lending you money across state lines should not have any impact. What challenges seem to be an issue with that? In this manner, they are the borrower from some institution on their equity then lending to you or you are trying to borrow against their equity?

@Jessica Perez

Lenders don't allow down payments to be borrowed so if you are leading with that it might have contributed to why you have been told no by lenders. Our credit union gave us a commercial line of credit in first or second position on properties in our portfolio that we use for similar purposes as you've described. They are not in IL however if that is where you are located. Do you know why the lenders are balking at LLC's or land trust? Most companies that work with investors should be quite familiar with those types of entity's owning properties?

@Nathan Cain

You can get it with no money down, but finding a third position lender might be difficult. Do you have any assets now that you can collateralize. You are right about not being able to collateralize this property without owning it or being under contract. Is this his primary residence? What's your plan for the property?

@Diandre Pierce

Paying down mortgages is the opposite of scaling. That is a dollar for dollar return on principal paydown. Turning over some kind of commercial property is more labor intensive but it also scales quickly because of potential returns. Whether that's mobile home parks or any other kind of commercially valuated endeavor is a matter of personal comfort and preference.

@David Cianci

It's a distraction from your first deal. Don't worry about it. We have quitclaimed property into llcs and left loans in our personal names without issue. If the mortgage is getting paid, usually banks won't worry about it. Usually creating a llc has net zero or an increase in overall taxes paid, so I don't know what benefit you are imagining from creating one. Have a substantial liability insurance amount and worry about an llc down the road while you are saving up to buy another.

@Kurt Baltutat

I think the minimum bedroom dimension is 7' x 10' and you need a window large enough for egress if it's going to be a bedroom. On flips, we don't find pushing that envelope worth the added liability if someone finds out that it's not a legal bedroom. I think you keep it as an indoor laundry and have a great 3/2 instead of a weird 4/2. I'm also not familiar with the market in Knoxville, so let me know if that ends up being bad advice.

@Monir Badeer

That's exactly how we got started. Network, Network, Network.