All Forum Posts by: Kevin Tran

@Greyden Piechnick I use Tellus. Collect rent thru the app, yourself and tenant would need to link your banks to app. Takes about 3-5 days for payment to hit your account. Manage all maintenance requests thru the app, so it's nice to not have to deal directly with the tenants or having them call up my mobile. It also markets your vacancies. There are some basic accounting functions but I don't use them. It's all free. For paid accounts you get some additional options. Tellus is purely mobile and the UI can be better, but so far it's been good enough and their tech support is very responsive. I've heard of Cozy a few times during initial research but haven't had to look into it.

@Andrew Postell Thank you very much for your advice. This conversation made the Bigger Pocket experience truly great.

@Andrew Postell Yes, in Georgia a mortgage is filed under a security deed and I'm getting the help of closing attorney to file it. If refinance and new loan isn't enough to cover the original lien amount, would it be enough for LLC to provide a notarized lien cancellation (stating mortgage paid in full) to the new lender who would use that to cancel the original lien held by LLC while filing their own lien? Do you know if it works like that or new loan would be 2nd lien and it's upon LLC to have the 1st lien cancelled.

Trong

@Andrew Postell thanks for getting back to me. To make sure I understand your point I have a couple follow up questions. Based on your feedback I understand some lenders would see the property was sold at $240k, therefore is market value and would only refinance 75% of that purchase price without any further appraisal? Means I must partner with one that appraises during refinance regardless of purchase price. I was planning to file a security deed with note for $240k (for simplicity not including attorney fees for closing) then refinance to a Fannie/Freddie loan. If the property appraises and lender does refinance 75% of market value of $280k, that's $210k paid to my LLC. With the note at $240k, there'd be a balance of $30k. I'm okay with not getting all my money out but lender would require that I "come out of pocket" to cover that balance to close lien held by LLC, correct?

Thanks for your further guidance,

Trong

@Don Pham based on my understanding of @Andrew Postell's explanation, for my situation a note at $240k would cover my target of $210k, which is 75% of 280K market value. And as you said if corroborated by appraisal the lender may write this loan.

@Andrew Postell Thank you for sharing these steps. Speaks to its effectiveness that this thread is 3 years old and still going strong today. I'm in the process of closing on a duplex in an all cash deal. It's an off market property I found through my wholesaler and paying $240k, the estimated market value is around $280K without any additional work. I really like your idea on the LLC lending and intend to implement this by using my LLC to lend to myself to fund this purchase then refinance into a conventional loan. Now, my question is: I want to refinance 75% of the market value of $280k, but having purchased it at $240k what would be the best way to ensure the lender would refinance the market value rather than the purchase price?

Thanks for your advice,

Trong

@Jennifer T. Wow, thank you for sharing. That's great first-hand insight, I'm sure if others are in the same boat as me and are reading this, they can learn a great deal from your experience. I'll probably come back to this post to re-read your reply from time to time. Those are interesting strategies that I'll add to the tool belt, especially working the eviction effort into the sale price of the property. I have heard of the cash-for-keys play, wouldn't be opposed to it (within reasons) for a smooth transition. I can't think of the specifics but eviction process in the state of GA includes posting a notice on the door and/or mail, filing with court, response period from tenant, then hearing in front of judge. This process theoretically takes up to a month, then talking to a friend who's done it before in the state of GA, his took 60 days. You definitely have given me something to think about.

@Jason D. Great points. To your last point, I was thinking "this could be a disaster, but could also be a great learning experience if I had the stomach for it." I was contemplating doing the eviction because the deal checked a lot of boxes for my situation, but for my first deal, I'd rather it not become my first battle scar.

Thanks,

Trong

@Anthony Hurlburt Yes, I agree that it's probably not a good idea to try this approach with a tenant with a back rent history. And yep, trying to have the wholesaler take care of the eviction via contract language, but think you're right there as well - unlikely to work.

Well, this was a cry for help and you guys have definitely provided some sanity check: I'm not making it more complicated than it is. If the wholesaler doesn't come back with a more favorable proposition, I will let it go and not be blinded by my eagerness to land a deal.

Thanks,

Trong

@Nathan Gesner thanks for the advice, glad you share the same sentiment about this wholesaler. It’s a sanity check for me. To make sure I understand you correctly: By “don’t do the former” you mean to not put faith in the wholesaler helping with eviction, and by “do that latter” you mean to trying working with the tenant?