All Forum Posts by: Andrew Pappas

Thanks Bart!  I'll probably follow up if I get closer to closing the deal.  

I'm investing out of state in St Louis, and have built a decent team over the past year with another property I own, but still want to screen what they're sending me.  Does anyone know if Bridgeton in the northwest metro area is decent?  I know the tenant pool for a multi may be middle to low income, I'm just looking for decent areas/not war zones.  Also, can anyone recommend a handyman or contractor for that area?  

I found a motivated seller who owns multiple single family homes with about 50% equity in each. He loses money every month because his interest rates are so high, and he is unable to refinance because his DTI is too high. He is looking to partner with someone who can take a mortgage in his/her name at a better rate. My idea is to create an LLC with each of us having 50% ownership, and the LLC buys the property with startup cash I put into it for a price equal to the mortgage balance on the property. I then refinance the property in my name at a better rate at an LTV where I only get back what I put into it. Using simple numbers, it would look like this

Home value: $100k, Mortgage balance: $50k. I put $50k cash as my equity stake in the LLC partnership. The LLC buys the property for $50k cash, and the seller's $50k equity is his stake in the LLC. I then refinance the property in my name for a 50% LTV, pulling out $50k (Lender told me if I refi within 6 months of purchase I can't get more cash back than I put into the purchase).

Is this a good structure?

Also, does anyone have recommendations how we would split expenses, income, and debt service?  Thank you

I worked with them, and advise you invest on your own.  PM me if you want details.  

Thank you, that is what I'm leaning towards. 

I currently live in a 3 bed 2 bath Wilmington, NC house in an A- type neighborhood.  I will be moving out in the next year and using the property as a rental and am trying to decide between laying new gravel or installing a concrete driveway.  Most of the homes in the neighborhood have concrete.  I know a concrete driveway won't increase the rent, but is it likely to increase how quickly it rents or sells if I decide to do so?  Any advice is appreciated. 

I also did the RDPD coaching.  A lot of good information.  All of which I could have found on this web site.  I suppose that coaching indirectly lead me to this site, but I'm sure I would have found it either way.  Since you have already found this site, you have what you need.  As many have said, I wish I found BP before paying for coaching.  

 Agreed. 

 I didn't post advertising that I have a good deal..I posted to see if those more knowledgeable than me knew of a way to create a win-win in this situation.  It's clearly not in anyone's interest, so I will not be getting involved.  

Yeah we are not going to get involved. I thought I should reach out and see if there is a sensible way to construct a deal, but it appears not.  Thanks for the advice.