All Forum Posts by: Will Chitwood

We own all our properties in LLCs with mortgages in our personal names as we switched them to the LLC after purchase. We never had problems with mortgage companies accepting the insurance in our LLC names until this year. 2 of them sent letters saying we have to have the insurance in our personal names which opens us up to liability exposure. We could have us as primary on the policy with the LLC as additionally insured but I don't like the exposure that gives us. Is anyone else having this happen and are there any solutions or workarounds other than refinancing at higher interest rates to a commercial loan or paying the property off?

I'm looking for a good contractor in the Charlotte or Gastonia, NC areas. Does anyone have any recommendations?

Thanks, the property is for $500,000 so it's under 1 million. 

I'm looking for a lender that does multi family (5 or more units) in the Charlotte, NC area. Does anyone have recommendations? 

Thanks for your respnses! Yes it's a investor who does run a turn key type company. It's not a hedge fund. I own investment properties but I've never bought a note before. 

What are the main things I should do for due dillegence. I assume having a title company and real estate attorney to check the documents. 

I'm planning to buy some 1st position notes off another investor who runs a company and once sold they woud be the servicer. I was wonering the due dillegance I would need to go though? To explain their model, here's the description of what I would be buying below. 

From the investor: 

What we do with these is sell the properties to other investors and do seller financing to them after they put a down payment down. So we loan our investors that own the rental properties money. All the properties were fully renovated with tenants in place and managed by our management company so we are making sure the properties (the collateral for the note) is in great shape and kept up as well. The payments would come to us as the servicer and then get paid to you from there so we can track everything correctly on a monthly basis.

In order to buy the note we would put a purchase agreement together outlining the sale of the note. Then we sign an "Assignment of Deed of Trust" which assigns our Deed of Trust to you so you are now the owner of the deed of trust. The Deed of Trust is what is secured against the property giving you your secured interest in the property. The promissory note is also assigned over to you with an "Allonge", which is basically a signature on the promissory note to assign it as well. Then we record the Assignment after you fund the note and you are now the owner. That's it.  

I actually already found one but thank you! 

I'm looking for around a 1% return like a 100k property with 1000 per month rent. Is that doable? I'd be nice to stay under 160k. I agree transitional neighborhoods are hard. 

I'm an investor from San Diego and are there still areas of the belt line that can still get good cash flow? Also is it a better strategy to find something that needs work or something that's already in good condition in the area?

I'm based out of San Diego and looking at investing in Atlanta. Do you know any good agents that work with investors in the area?