All Forum Posts by: Alan Salgado

There's an older thread with some good info:

https://www.biggerpockets.com/...

The SEC really frowns on this kind of setup unless it's done via an SEC attorney. I would take a look at Syndication Attorneys and have a free 30 minute consultation to see how this should be structured legally. It's not cheap, but it is well worth it in the long run.

@Larry Ott can I ask how you bought the title insurance? Apparently there is no closing after the online sale. Just immediate payment via wire and the title is mailed out.

Cozy just went sharply downhill for me. there is no support phone number and email response takes several days. The system just locked me out erroneously and I have to wait 72 hours to see if I can view an applicants credit report. 

It's really poorly supported software. Try getting in touch with someone if you have an issue. It will take days to get a response. I'm trying to view a credit report for an applicant and it just locked me out for 72 hours. I clicked on a link to verify identity and it just locked me out. 

Cozy is garbage. Locked me out for 72 hours after simply clicking on the link to view a credit report from an applicant. There's no support number to call. email response is futile. what a joke.

There are thousands of discussions on this topic and the list of pros and cons is just as long. The best resource for this discussion is your lawyer. But here I'll but the basic differences. 

If you put the property in your personal name, a tenant can sue you personally. However, you can get lower interest rates when financing. The loan will be based on your personal ability to foot the mortgage. If you can show you've owned it as a rental for a few months and can show rental income, that income may be added to your DTI.

If you buy in an LLC, your personal assets are somewhat protected, but interest rates will be based solely on rental income and a bit higher than the conventional rates.

Don't get into the discussion of 'hey its only 1 or 2 props, you dont need an LLC' with anyone other than your trusted attorney.

I don't have a contact info. You can search for the business online. 

• Call John R. Beard - Chairman & CEO BDC FUNDING in Palm Beach, Florida. I think he specializes in your type of situation.

You can certainly buy a second home as an investment property. If you title it in an LLC or business name, then you have to get a commercial loan which is based on the property income. However, If you title in your personal name, you have the option to get a residential loan which has lower rates depending on your personal credit worthiness and income. The rental property income would only be included if you have a current lease and can show a history of payments on that lease.