All Forum Posts by: Alpesh Parmar

I am using joint checking and savings account. This is how I am buying properties - some on my name and some one my wife's name. Why can't you have a joint account? 

Hello,

    I would like to get a feedback on how the Mid Atlantic Summit was. It was organized by BP author Dave Van Horn. They are selling the recordings of the summit as well so if you have purchased the recordings, please let me know @ the content of the summit and quality of the recording.

TIA.

Why wouldn't your insurance companies write umbrella? I am in East Bay and all my properties are under Farmers umbrella insurance. I don't think you can put IRA properties under same umbrella.

Agree with most of the responses. As everyone mentioned, inspection reports will cover every possible item in the house. For e.g. my friend recently bought a $1M house in SF Bay Area which is built by Toll Brothers and still the inspector wrote a 35 pg report. Investors like us living in states like California, Hawaii and many others have to invest out of state. People living in mid-west and some part of East Cost may not realize that there are parts of the country where you have to spend $500K on a condo to barely get rent of $2000/month.

If you are starting out, it would be hard to get a loan on LLC. I had personal experience with this. Even though, I am experienced; when I added a partner; I couldn’t get Fannie/Freddie loan. We got the loan on individual names and then moved the property under LLC.

Lower the rent and also try out the best PM in the area even if they charge more for finding tenant as well as management fees. Also, if the property is in Southern Cal; I am not sure but you would barely have positive cash flow even when it’s fully occupied.

If it’s a living trust, over 90% of the time; it would be revocable. Irrevocable trusts can be used for asset protection and tax savings but they may not be your estate trust.

Not a good idea. Any SFR in Bay Area goes for over $1M. Let's say you bought your property for $1M and its valued at $1.5M now. Here are the reasons: 1) Buy selling it now and then buying another property at $1.5M would increase your property taxes as property taxes would go with purchase price of $1.5M whereas you most probably will be paying way less taxes on your current residence. 2) you would be starting a new mortgage cycle and adding another 30 years of interest. You should know that with any mortgage, significant part of interest is charged up front. 3) you can't write off interest on new mortgage originated over $750K. This is another big issue in SF BAY AREA.

Originally posted by @Jim Cummings:

@Alpesh Parmar. I don't have any Legal Experience to contradict you on the Warranty Deed aspect. 

I do know that when I moved a Free & Clear Property from my Personal Name to an S-Corp I owned, and went for a Rehab Loan, the bank required me to buy new Title Insurance as part of the loan.   

 Bank is correct. When you went for a new loan, bank has to do their own due diligence and one item is the title insurance on the S-corp.

Jim Cummings if you get a warranty deed, your title insurance stays intact. Title insurance becomes invalid when people quit claim deed. I don't change name on insurance. I just add my LLC as additional insured.