All Forum Posts by: Trent Dues

The pictures look amazing, great job. Did your team handle a lot of the rehab work, or was it mostly/all contracted out?

Has anyone been following along with the proposed legislative changes for the Pittsburgh region that looks to limit hedge funds and large out of state corporations from buying up SFH properties? I know it's been a hot topic forever, but is there any real traction happening currently that could actually make it to the top for approval?

It's a very interesting concept, and if executed correctly, could really benefit families and working class buyers that have been, for the most part, priced out of the market for various reasons. But, this could leave a ton of ambiguity on how a transaction is completed moving forward; are there consequences to the seller, agent, title company/law firm, broker etc that knowingly sell and handle the property transfer to a "hedge fund"? Will every LLC purchaser have to prove their source of funds for cash offers to make sure it isn't backed by a corporation on the 'banned' buyers list? I am very curious to follow along and see if/how/when any changes are actually approved at the county and state level. What are other people's thoughts on Representative Chris Deluzio's and local municipalities plans?

https://www.cbsnews.com/pittsburgh/news/lawmakers-hedge-fund...

What are your goals with investing? Buying under an LLC shifts the type of loans you would be eligible for, and likely rules you out of considering a house hack or using an FHA/VA loan, but opens up different funding options if you have the capital for a larger down payment. The LLC only offers certain protections to you; a lot of investors instead choose to invest in an umbrella insurance policy instead of buying in the LLC.

Also, keep in mind, if you are targeting property in Pennsylvania, while the switch down the line to re-deed from personal name to the LLC is quick and easy, it is not cheap. You will pay transfer taxes based off of the properties calculated assessed value, and if the property is in Philly city limits as your post location suggests, you're looking at a payment of 4.278% of that value being paid at close. An example is deeding a property valued at $100k from your name to your LLC or vise versa, you're now writing a check for $4,278.00 just to cover the tax payment to record the new deed, not including the recording fee and any fees collected by the title company or attorney representative who facilitates the transfer.

Aadeon Financial is worth looking at, their website is aadeonfinancial.com

Hi Gray, which state are you looking to invest in? As mentioned in the thread, as long as your sales contract is signed by both parties and you open escrow with title to ensure ownership, the title company will handle the transfer/recording/disbursements. 

Do you know if the other homes in the neighborhood are all built the same? If so, are they all currently occupied or have their been other property sales recently? If your purchase and rehab costs make sense and are well below other recent sale prices, you should be golden 

Rocket Mortgage and a few other large lenders such as United Wholesale Mortgage release their wires first thing the morning of signings to the title company or closing agent without need of funding approval (which is greatly appreciated when dealing with different time zones/disbursements to a seller during a purchase). Are you not going through an escrow company? The lender wiring directly into your personal or business account does not sound normal, but maybe they have different rules they follow in your state. Did you electronically sign any affidavits prior to your closing appointment? Those would likely outline the rules of fund disbursement and signing contingency.

Best of luck with your house hunt! I moved to Pittsburgh a little over four years ago from out of state, and really enjoy living in this region. What area/neighborhoods are you interested in living? 

Yes! As long as your lender approves of the loan being taken out in your personal names and subsequently deeded into your LLC without any 'call for payment upon transfer', there is no issue signing both deeds the same day. We do this often for clients purchasing investment properties in Ohio and PA. The purchase deed will just need to be recorded first and the legal description updated on the quit claim deed, with recording info of deed one added (depending on what your county recorder's office looks for during property transfers).

Depending on your purchase and rehab budget, pick a rust belt city, buy a few homes near each other on the same block in a lower rated area and renovate them to Section 8 standards, complete the application for section 8 approval, and set up a property manager to get tenants in and collect the monthly checks from the housing authority.