All Forum Posts by: Tyler Gerhold

Hello BP!

I feel like I've called so many banks and I keep getting the same answer "No". I own 3 duplexes in Ohio. All are owned in the same LLC. All have increased in value by $50-60k in the past 1.5 years due to forced and natural appreciation. I would like to tap into this equity without refinancing my 3.19% interest rate. Ideally, I could pull an 80% LTV (or greater) business line of credit as a second mortgage. These are investment properties and are not owner-occupied.

My question: Does anyone know of any banks/credit unions/lenders that would lend in the second position on investment real estate owned in an LLC?

Thank you!

Hey BP,

I am currently under contract on a package commercial deal. It is 3 duplexes side by side all on different parcels (6 total units). My lender asked me if I want to do 3 loans or 1. We were initially thinking we would do one loan but the flexibility to sell these duplexes individually later is appealing, as we believe we could sell them for more money that way. My lender said there would be no extra cost to us but this all just sounds to good to be true.

We like the flexibility of having 3 loans (we could sell them as a package or separately over time), but I am wondering if that's the smartest move here. Would the appraisals be different? or the same as if they were all together?

Thank you!

Tyler

@Justin Goodin I have not heard of Joe Fairless's meetup. I will definitely look into that! Thank you

Good Morning BP! 

Myself and three others are partnering on a value add multifamily property in the Dayton, OH area. We are also raising money from investors to invest in other multifamily properties but have hit some road blocks. We are inexperienced and want to learn from someone who has completed a full cycle of a syndication. I have been trying to find other individuals in the area that have executed partnerships and syndications but I have been unsuccessful so far. I want to network and meet other syndicators in Dayton/Cincinnati. Do you have any advice on what I should do to connect with these types of individuals?

Thank you for your help!

Tyler

@Jillian Sidoti Great diagram! My only question is: In this scenario, would the manager LLC also be the partner in the property LLC? Or would you have two separate LLCs? Say "XYZ Capital Holdings LLC" holds all the properties and then you would also have "XYZ Capital Management LLC" that is the 30% partner in the properties? Do you need two separate LLCs or will one work?

@Rick Martin Thanks Rick, that's good to know about the co-sponsor agreement

@Evan Polaski Thank you for the advice Evan. This will definitely help me get my business rolling. I'm also going to discuss this with my attorney.

@Chris Levarek Thank you Chris! This definitely clears things up. 

Hey BP! So I'm slowly moving into the raising capital/partnership space and was wondering how others structure their business for raising money. Say I want to start "XYZ Capital LLC", clearly this LLC does not hold everyone of the properties, but what does it do? Does it act as a holding company? What if you want to pursue partnerships with other active investors, would XYZ Capital LLC partner with the other investors in a newly established LLC? I guess my question is what is the relationship between your brand LLC and the LLCs that hold the individual properties? Does the brand LLC own the property LLCs or is it just the manager in the property LLC? If it's established as a holding company can it still participate in joint ventures even though it technically isn't an operating company? How have you set this up for your business?

Thank you for any advice you can provide!

Tyler

Hello Isaac! I am currently in a 4-unit house hack and I would recommend finding a multifamily that has most tenants on month-to-month leases so if things aren't meshing well in terms of noise or payments you have more flexibility and less headaches from the get go.