Closed on Rental Property #18 in Grandview, MO

15 Replies

#18 was a long time in the making.  It was short sale with Wells Fargo with two mortgages on it.  Started working on it last December and it finally closed on Friday 8/28.

It's a 3/1/1 with large detached garage/workshop building behind the house, and has an extra lot adjoining included with the property.  This is in the quiet old residential area of Grandview off Main Street (12th St/Little/Duck area).

The house is rent ready with nice appliances, good hardwood floors, all new fixtures, and granite countertop.

Rent will be $850 and my all-in price is $50,500 and I'm happy that no reno work required because I have four in progress (or waiting to start) already with reno work.

Other Updates:

- I also completed two cash-out finances on two homes I bought cash from wholesalers and rehabbed.  On both of them, I purchase was about $35k, I added value for $9-12k, and appraisals came back at $64-65k.  Refinanced out most of my costs - these take more work/effort but it's nice not leaving any cash behind and still having solid equity in the house.  One of these is already leased and I'm going to put the other one on the market today at $875.

- I set up an LLC structure with four child LLCs with my main LLC as owner, each child LLC will hold a few properties.

- I am starting process of competitive selection for my PM business my contract will current provider is up later this year. 

Best of luck on your projects.

Wow - 18 is a great business! Congrats!

Could you give me some more info about parent/child LLC's? I've not heard of that before. One of the BP podcasts I was listening to recently discussed "series LLC's". Is this like that?

Good luck on all your developpments!

Originally posted by @John Lindemann :

Wow - 18 is a great business! Congrats!

Could you give me some more info about parent/child LLC's? I've not heard of that before. One of the BP podcasts I was listening to recently discussed "series LLC's". Is this like that?

Good luck on all your developpments!

 Hi John. It is simply having the children llc be owned by my primary llc.  This gives several cells of protection. I made up the name child llc. MO does not offer series llc.

@Cliff Harrison

Have you listened to BP Podcast 109? It had some golden nuggets in there that I'm trying to soft through. Two specifically are the series llc and the trust.

The trust I like because it isn't legally recorded and gives an extra measure of anonymity. If I created a trust then the trust owns the llc and the llc owns the house then someone trying to figure out who owns it would see the llc on the tax records then they could look upp the llc but then when they see the trust the trail ends. 

At least that's what I think I understand. I'm seeking attorney advice to clarify.  My wife is in the public eye a little and anonymity on our personal residence would be nice to have also. 

Cliff Harrison inspirational! I'm a noob. Just looking to get one deal done by the end of this year. Are you doing RE full time?
Originally posted by @John Lindemann :

@Cliff Harrison

Have you listened to BP Podcast 109? It had some golden nuggets in there that I'm trying to soft through. Two specifically are the series llc and the trust.

The trust I like because it isn't legally recorded and gives an extra measure of anonymity. If I created a trust then the trust owns the llc and the llc owns the house then someone trying to figure out who owns it would see the llc on the tax records then they could look upp the llc but then when they see the trust the trail ends. 

At least that's what I think I understand. I'm seeking attorney advice to clarify.  My wife is in the public eye a little and anonymity on our personal residence would be nice to have also. 

 John - in my opinion, the Trust offers only a false sense of anonymity (thank you spell check).  The custodian of the Trust will instantly give you up as the owner in any legal proceeding, as they should and must.  People who financially benefit from setting up Trusts overstate the benefits (imo).  

Originally posted by @David Kraljic :
Cliff Harrison inspirational! I'm a noob. Just looking to get one deal done by the end of this year. Are you doing RE full time?

 hi David - I am not doing RE full time.  After work and on weekends.  And some lunch hours (or two hours) during the week when necessary.  Plan to go go full time eventually if no major setbacks.

@Cliff Harrison

I will gey more info on the trust in the coming weeks...

Mind me asking what you day job is? I'm a project manager engineer and also doing RE on the side. I didn't know if it would be possible to own that many and hold a full time job. Do you use a PM company?

@Cliff Harrison What is your financing strategy? I would assume you are using a commercial lender for the refis with 18 properties? How long is the seasoning period?

Originally posted by @Joseph Weisenbloom :

@Cliff Harrison What is your financing strategy? I would assume you are using a commercial lender for the refis with 18 properties? How long is the seasoning period?

 Quasi-commercial with Arvest bank. Check out my thread on property #19 for more details.

cliff i just bought an 8plex in grandview. Still interested in getting together?

Timothy, I may have someone interested. What are the details?

Originally posted by @Timothy Aughinbaugh :

cliff i just bought an 8plex in grandview. Still interested in getting together?

Congrats Tim! Was that from Dan Reedy by chance? Sure i would like to get together - I'm in the Grandview area a lot. I have a SFR rehab in the Belvidere neighborhood going on now.

yes it was. He was horrible to work with. Glad to close on it though. My guys are working in it now. Should be done end of January. Im in Ecuador until Jan 10. After that I'll contact you.

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