From Pro Athlete on the highest stage to Investor

Rental Property Investor · Columbus, OH · Member since 2015 · 34 posts · 22 votes

I have played in 8 different countries and on every national stage and NBA arena you can think of, but I get much more of a thrill out of learning and growing in real estate investing. I'd like to share my journey here and get ongoing feedback from the BP community!

I am from Columbus Ohio and just closed on my first property there about 3 weeks ago. A cute little duplex in a C+ area of town. I am desperately ready for my second deal on a multi family but there are barely ANY on the market these days! Pointers? Tips? Advice?

Let's grow TOGETHER!

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Mindy JensenPro Member

BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes

@Asia Taylor, why do you want 10 units in 3-5 months? First get the initial property stabilized, then look for another.

Are you still traveling extensively? Do you have Property Management in place? Scaling is great, but get the first one situated before adding more to your plate.

[email protected]Podcast Guest on Show #261

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Tim Johnson
Lender · Grand Rapids, MI · Member since 2018 · 703 posts · 446 votes
7y
Thats awesome, what areas are you looking to invest? Only in Columbus Ohio, or do you want to reach further out.
0 Reply
Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
7y
Originally posted by @Asia Taylor:

I have played in 8 different countries and on every national stage and NBA arena you can think of, but I get much more of a thrill out of learning and growing in real estate investing. I'd like to share my journey here and get ongoing feedback from the BP community!
I am from Columbus Ohio and just closed on my first property there about 3 weeks ago. A cute little duplex in a C+ area of town. I am desperately ready for my second deal on a multi family but there are barely ANY on the market these days! Would love to connect with someone on finding off market deals and wanting to find a team to start the BRRR process with!!!!! I'm trustworthy, I do my homework and I think we can do a lot with a team! Mentors, partners, investors, owners! Please can someone help me reach my goal of 10 units in the next 3-5 months?! Pointers? Tips? Advice?
Let's grow TOGETHER!
what part of Cbus did you buy your duplex in? 43204? 43211? 43206?
[email protected]786-494-6766
Section 8 Launch52 Reviews
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Asia Taylor
OP
Rental Property Investor · Columbus, OH · Member since 2015 · 34 posts · 22 votes
7y
43211 cash flows great
0 Reply
Juhriah Smith
Contractor · Columbus, OH · Member since 2018 · 49 posts · 20 votes
7y
Hey Asia,
I sent you PM would love to work together I am looking for multi-family units in the columbus area as well
0 Reply
Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
7y
@Asia Taylor, why do you want 10 units in 3-5 months? First get the initial property stabilized, then look for another.
Are you still traveling extensively? Do you have Property Management in place? Scaling is great, but get the first one situated before adding more to your plate.
[email protected]Podcast Guest on Show #261
2 Reply
Brian Tootle
Rental Property Investor · Columbus, OH · Member since 2018 · 15 posts · 25 votes
7y
I'm in the same boat Asia. I just picked up my first duplex in Columbus (43204) a couple of months ago. Holidays and the weather has delayed the rehab but it's almost complete. I agree, as I start to look for another one I'm not finding much!
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Brandon Schlichter
Real Estate Agent · Circleville, OH · Member since 2008 · 633 posts · 488 votes
7y
Congrats! I hear there's a few other well-known-names from the world of Professional sports dipping their toes into Columbus rentals as well. It's a fantastic market with TONS of opportunities!
2 Reply
Brandon Schlichter
Real Estate Agent · Circleville, OH · Member since 2008 · 633 posts · 488 votes
7y
From what I've seen outside of 270, just about all the reasonable rentals are gone from the MLS. They hit once in a while and you have to be ready, willing and able to get them inspected/complete due dilligence and be ready to close almost immediately.

But off market deals...........There's still thousands upon thousands of them. There's tons of wholesale activity all over the place, and with just a modest system in place you can generate tons of leads. Anymore I do no advertising and still get 2-3 calls a week on fantastic deals.
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Asia Taylor
OP
Rental Property Investor · Columbus, OH · Member since 2015 · 34 posts · 22 votes
7y
Hey Tim I'm open to investing in other areas within reasonable driving distance!

Originally posted by @Tim Johnson:

Thats awesome, what areas are you looking to invest? Only in Columbus Ohio, or do you want to reach further out.
0 Reply
Asia Taylor
OP
Rental Property Investor · Columbus, OH · Member since 2015 · 34 posts · 22 votes
7y
Sounds great! I will get back to you!

Originally posted by @Juhriah Smith:

Hey Asia,
I sent you PM would love to work together I am looking for multi-family units in the columbus area as well
0 Reply
Asia Taylor
OP
Rental Property Investor · Columbus, OH · Member since 2015 · 34 posts · 22 votes
7y
I would like two 4 plexes if possible in the next 5 months. Definitely working to get it stabilized. I have two tenants already and am making some repairs in a few things to improve the property. I have family that will help with the initial property management. But for the bigger units I will hire a team. Do you feel like there should be a good waiting period between?

Also I've meaning to ask here what you think of me transferring the deed to my LLC. My lender didnt allow me to buy it before. He said there's a due on sale clause but that it rarely ever happens. What are your thoughts on that? Have you heard of banks calling a note happening a lot? Id really like to get this under my LLC.

Originally posted by @Mindy Jensen:

@Asia Taylor, why do you want 10 units in 3-5 months? First get the initial property stabilized, then look for another.
Are you still traveling extensively? Do you have Property Management in place? Scaling is great, but get the first one situated before adding more to your plate.
0 Reply
Asia Taylor
OP
Rental Property Investor · Columbus, OH · Member since 2015 · 34 posts · 22 votes
7y
Hey Brian!! Yeah it's tough out here huh? And the weather hasn't made it much easier that's for sure. I'd like to connect with you as well if possible maybe we could help each other somehow. And congrats on your first property!!!!

Originally posted by @Brian Tootle:

I'm in the same boat Asia. I just picked up my first duplex in Columbus (43204) a couple of months ago. Holidays and the weather has delayed the rehab but it's almost complete. I agree, as I start to look for another one I'm not finding much!
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Asia Taylor
OP
Rental Property Investor · Columbus, OH · Member since 2015 · 34 posts · 22 votes
7y
Brandon that's awesome!!! Looks like you've built enough relationships to have that! Would love to connect with you and learn from you if that's alright!!

Originally posted by @Brandon Schlichter:

From what I've seen outside of 270, just about all the reasonable rentals are gone from the MLS. They hit once in a while and you have to be ready, willing and able to get them inspected/complete due dilligence and be ready to close almost immediately.

But off market deals...........There's still thousands upon thousands of them. There's tons of wholesale activity all over the place, and with just a modest system in place you can generate tons of leads. Anymore I do no advertising and still get 2-3 calls a week on fantastic deals.
0 Reply
Brandon Schlichter
Real Estate Agent · Circleville, OH · Member since 2008 · 633 posts · 488 votes
7y
Originally posted by @Asia Taylor:
Brandon that's awesome!!! Looks like you've built enough relationships to have that! Would love to connect with you and learn from you if that's alright!!

Originally posted by @Brandon Schlichter:

From what I've seen outside of 270, just about all the reasonable rentals are gone from the MLS. They hit once in a while and you have to be ready, willing and able to get them inspected/complete due dilligence and be ready to close almost immediately.

But off market deals...........There's still thousands upon thousands of them. There's tons of wholesale activity all over the place, and with just a modest system in place you can generate tons of leads. Anymore I do no advertising and still get 2-3 calls a week on fantastic deals.

Sure thing.
Networking and connecting with landlords IMO is all about having a sense of being in a community, making sure you're deep into the market and willing to be personable.
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Michael Ealy
Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
7y
Originally posted by @Asia Taylor:

I have played in 8 different countries and on every national stage and NBA arena you can think of, but I get much more of a thrill out of learning and growing in real estate investing. I'd like to share my journey here and get ongoing feedback from the BP community!
I am from Columbus Ohio and just closed on my first property there about 3 weeks ago. A cute little duplex in a C+ area of town. I am desperately ready for my second deal on a multi family but there are barely ANY on the market these days! Pointers? Tips? Advice?
Let's grow TOGETHER!
Hi Asia,
I am from Ohio too - Cincinnati area. Welcome to BP!
My expertise is buying multi family (50+ units and above). Here's a story of one of my buildings (after 6 years of headaches, I sold it for over a $1 MILLION profit).
https://www.biggerpockets.com/forums/311/topics/64...
To answer your question, so as not to trigger the Due on Sale clause, you should transfer the deed first to a landtrust then you transfer the beneficial interest of the landtrust to your LLC. On public records, it will show you transferred it to yourself as Trustee.
Talk to a real estate attorney for details or you can also PM me here on BP.
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Henry Marshall
Specialist · Cincinnati, OH · Member since 2018 · 87 posts · 13 votes
7y
@Asia Taylor Cincinnati market is not far away I am here:)
0 Reply
Kevin HealeyPro Member
Rental Property Investor · Denver, CO · Member since 2018 · 10 posts · 10 votes
7y
Hey Asia, congrats! We picked up a couple duplexes in 43206 back in Sept and just "transferred" them to one of our LLCs. Regarding Due on Sale, it was a concern of ours as well, but this was our thought process....
First, we also understand it's rare and unlikely, but a real possibility so we weighted that. Second, we've heard that as interest rates eventually rise and get back to "normal levels", banks may be more likely to call these loans due in order to redeploy the capital at the higher rates.
Given that understanding, we've tried to mitigate the risk of having our loans called due with how we structured the transaction. First, we purchased in our personal names (as you did), took title in our names and put the mortgage in our names - we did this in order to make sure our loans conformed to conventional fannie/freddie terms. Then we waited until our loans were sold to the secondary market (4-6 weeks) before filing a Quit Claim deed to "transfer" title to our LLC. The reason we waited is that when the loans are sold, analysts will review the loan details and may notice that the mortgagor and title hold are different (if you've already transferred to an LLC) which can cause the loans not to be sold/purchased and become a flag that causes the loan to be called due. Additionally, the quit claim is in fact a "transfer" and not an actual sale (I believe) so it gives you ground to fight the clause if it's ever enacted.
Last, as we understand it, if the clause is enacted, the lender may allow you to simply transfer the title back into your personal name instead of demanding a full pay off - especially if you have a relationship with the lender and/or multiple loans with them - they won't want to lose you as a client (a very good reason to develop relationships with your lender(s))
Given all of that, we strongly believe the tax and liability benefits of holding property in an LLC out weight the possible downside of the due on sale clause - particularly given the easy of the process, the low likelihood of the event and the ease and options for "undoing" the transfer.
Sorry - got a little long winded there but happy to discuss further if you want to DM
best,
kevin
2 Reply
Scott SmithPro Member
Attorney · Austin, TX · Member since 2014 · 1k+ posts · 932 votes
7y
In regards to the question about transferring a deed into a property: here are two types of transfers that can potentially raise an alarm about the due on sale clause: (1) the transfer to an LLC and (2) the transfer to a trust. A transfer to an LLC will trigger the clause and should therefore be avoided even though banks are hesitant to ever foreclose as long as the note is being paid. Even with the note being paid, the banks will still send threatening letters. This issue can be avoided completely by transferring the property into a land trust.
While a transfer to an LLC will cause alarms at the bank and prompt them to send you a letter, a transfer to a trust will not. A transfer to a trust is exempt from due on sale violations since banks will view transfers to a trust as an estate planning tool. You should not even receive a letter from the bank. This article explains it a bit more.
An added benefit of transferring a deed into a Land Trust prior to moving it into the LLC is that you can also introduce a layer of anonymity by having your attorney sign as the "Nominee Trustee," and have it expressed in your operating agreement that after the formation of the trust you would become the "Trustee." This means your attorney's name would be on public record, but not yours. There are also ways to introduce anonymity to your LLC, but that is for another thread entirely.
Good look with your investments! I would agree with @Mindy Jensen and encourage you just execute the first investment at the highest level you can before purchasing more properties. The experience can give you invaluable direction when it comes to future investments you make, potentially changing the aim you have for future investment properties.
Podcast Guest on Show #109
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Asia Taylor
OP
Rental Property Investor · Columbus, OH · Member since 2015 · 34 posts · 22 votes
6y
@Scott Smith hey Scott!! Thank you very much for you reply. Somehow it got lost in all the mentions and I just saw it! GREAT information and I'm going to look into doing this within the next few days! Would also like to connect with you on some other questions! I'll be in touch!
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