All Forum Posts by: Tyler Haskell

I am desperately seeking a solution to this problem and no internet research has provided an answer that I have found:

Myself and two partners have been acquiring rental properties using 25% down conventional financing under our personal names. Because we have quite a few, we have been skirting the 10 mortgage limit by rotating names to put on each mortgage, essentially allowing us to acquire 30 mortgages.

We are essentially funding each other's personal properties and operating under a general partnership agreement, and mitigating risk by sharing P and Ls evenly between all units. All is going well.....

Except, the general partnership is providing a lot of personal risk exposure, and now that we are switching strategies to the BRRR strategy, managing the rehabs ourselves, and going after larger projects, it has become clear that we need a business entity behind us. Preferably an LLC.

Here's the problem.

No lender I have spoken with thus far will fund to an LLC in a way that the BRRR strategy will work. We need some kind of an equivalent to an 80% cash out refinance after the rehab and a six month seasoning period to repay our hard money loans, then convert to mortgages that do not have crazy high interest rates as we intend to keep these properties and cash flow...

Anyone have any experience and solutions for this? Is portfolio lending an option to an LLC? Will they still do cash out Refis?

Hoping someone may have some advice:

We are a three person REI partnership, all partners live in California.

We invest in mostly Indiana properties.

We are trying to accomplish a couple of legal goals:

1. Protect each asset against itself legally (Individual LLCs?)

2. Provide partnership protection (California LLP?)

3. Avoid paying ridiculous $800 per year or higher legal fees for California entities.

The attorney I spoke with recommends one California LLC, and to put all Indiana properties in that LLC. He also stated that because the income has to run through California taxes anyways because we are residents here, it makes sense to have one California based entity.

Meanwhile, Indiana LLCs only cost like $100 bucks vs $800 in California, and we would have to re open title on all properties to amend. This sounds like an expensive option. We have also explored making a Nevada or Arizona SERIES LLC, or even an S corporation, but were advised against it.

Any recommendations or thoughts would be greatly appreciated!

Greg Kuzmits,

Thank you for the response! I appreciate the information and I will check out the Youtube channel.

Hello, Do any real estate attorneys, CPAs, or investors know if Indiana allows for series LLCs? I know that California does not, and I need to form an entity. Another recommendation I received was to form a series LLC out of Nevada or Arizona and group as many properties into that as possible. Any thoughts would be greatly appreciated, thanks! Tyler Haskell

Looking forward to it, see you all there!

Thanks @Al Williamson for hosting the meet up, I had a great time meeting and chatting with all of you! 

@Chris 

@Chris Williams 

thanks for the comments chris. I would guess that the effectiveness would go down but to see 99% of signs gone over a couple month period is still surprising. 

Always have to find a way to overcome adversity, Keep going Chris!

Hey all,

Just posting an observation and seeing if anyone else from Northern Cali or elsewhere has seen the same.

I used to see bandit signs all over Sacramento, sometimes several per telephone pole, but about 3 months ago, they just up and vanished.  

I own a parking lot surfacing company in Sacramento so I am driving to different areas of Sacramento, chico, stockton, modesto, fresno, you name it ALL day, and have been looking for them in particular. So I don't believe its just my perception.

That leads me to think one of two things:

1) The county or cities have begun cracking down on the signs (Because they are illegal in my area without a permit and you cant get a permit to put one on a telephone pole or other city property) either fining hard or just taking them down so fast that the investors arent getting the calls.

2) The market is so seller favorable and deals are so scarce due to the raising home prices and improving economy that the lack of opportunities do not justify the cost of the marketing. 

I think number two is more likely, because lets face it if investors were making deals happen on bandit signs no 1000 dollar fine is going to stop them. I wonder if direct mail marketing is having the same troubles...

So whats happening out there? any thoughts?

I will be there. Thanks!

Thanks for all the advice, I did indeed pass on the property. Margins were thin, comps were shaky, and permit issues looked like a nightmare!