All Forum Posts by: Corbin Jones

Hello, I have a piece of land in Arkansas on a mortgage and a home in wisconsin that's on a mortgage, both through banks. If I quit claim these out of my personal name into an LLC, will this hurt my credit by closing accounts in my personal name?

@Kory Reynolds Hi Kory, I meant to add you to my question above, but what is the transfer process like? Will it take months or weeks? Are there complications that may arise from transferring a property to my personal name and then back to my LLC? I understand there may be taxes or transfer fees.

Hello Gene, what is this process like? How long does it take to deed it to your personal name and then back into the LLC? Is it a pretty smooth process? I'm planning for the future, so that's why I ask.

@Jared Wilson thanks for the response!

I actually don't know the best way to structure it. I would like to refinance into a conventional residential bank loan (30-year), so that's why I'm not putting it in the LLC from the start. That being said, you have any recommendations?

Hello,

I just secured my second property in Milwaukee, which is a duplex. My first deal was a single-family home under bank financing, and it's been working really well for the past year that I've had it. 

This duplex will cash-flow well and it's in a C-class area. I'm looking for some advice on structuring the deal since closing has not yet occurred. The private investor I'm working with is financing this property to me at 8.5%, so I'll be refinancing in a few years after I build up enough equity. I'll then transfer the property to my LLC once I refinance. My question is this - would it be best to have my private lender buy the home in cash and sell it to me on a land contract, or would it be best to have him send me the funds and I pay him on the loan? We will be writing up legal contracts, of course. If he sends me funds in the amount of the purchase price, how will that look to the government? Is it considered a gift? Can I be taxed on that amount? This is basically a choice of seller-financing or a private money loan.

Lastly, what all should we do to structure the legal contracts and everything? Should we talk to a title company and a real estate attorney? What all should we have in place to make sure this goes smoothly? The home will be placed in my name and all taxes, insurance, and repairs will be covered by me.

Cory, this is awesome!! Sorry if I missed it, but where did you get the rehab money from for your first deal and onward? Did you just put the rehab charges on credit?

Hello BP,

I am buying a duplex on land contract in Wisconsin (seller financing) for 8.25% interest. The term will be 30 years. This is not my first property, but it will be my first time financing through a land contract. I'm putting only 5% into the deal, with no closing costs. It will cashflow fairly well and will generate a higher return for my money without weighing down my DTI since it won't be reported to the credit bureaus.

I would like to refinance out of the high interest rate into my personal name or into my LLC that I recently created, which I'm sure would require commercial financing at a higher rate than a loan in my personal name.

How would refinancing out of this land contract work? Do I need to have 20% - 25% of the loan paid off before refinancing? Would I be looking at a rate-and-term refinance or a cash-out refinance? How does the bank view these things? The lender is a very close acquaintance of mine and we're going to write contracts and follow legalities, but we're both flexible on how it's structured.

Hello,

I have owned and paid for a mortgage on a SFH in Milwaukee for one year, and I've had the mortgage account tied to an Ally checking account that is separate from my personal Chase account. However, just last week I formed a single-member LLC for the home and opened a business bank account through PNC. I closed the Ally account. The home is still in my personal name since I have not yet transferred it to the LLC. The mortgage servicing company returned a check of $76 to me for an excess amount in my escrow account. The check is in my personal name, but I want it to go into my LLC account. Will I jeopardize or expose my LLC if I deposit a check in my personal name to the business account? Should I simply deposit the money into my personal account and then transfer it over to the LLC account as an owner contribution? If you have any helpful resources about LLC best practices, please feel free to share.

Dude, you are awesome. 

Hello, I have two questions about seller financing. My friend is a note investor and will be financing a home to me on a note that he’s buying outright. Of course, we will draw up legal contracts for this deal.

My first question is about building credit in my LLC through this private deal. Is it possible to report this to the major reporting bureaus to build my LLC credit? I have a credit card that I will use to build credit also.

Second question - how do depreciation and expenses work? I’ll be covering all the expenses, insurance, repairs, etc.. How do I handle depreciation for this? Do I need certain documentation? Thanks in advance.