All Forum Posts by: Ashley St. Gelais

Hey @Pablo Prado,

My understanding (note: I am not an attorney) is that if someone wants to sue you, they will sue you. And they can name you and the LLC in a lawsuit.

The purpose of owning a property in an LLC is to create a layer of separation between you and the property.

You can still use the LLC to manage the property, but I don't believe it would offer the same protection as if the property was owned by the LLC.

I'd suggest getting an umbrella insurance policy, just in case. (Ours costs a couple hundred $/year.) 

Is there a reason you are considering not owning the property in an LLC?

Hope this helps!

Ashley

Welcome @Brandon Koehler!

I love that you are so passionate.  I, too, agree that there is no other investment like real estate.

Since you are in college and have to live somewhere, have you considered purchasing a property with the assistance of your parents? You can live in it now and then turn it into a full rental later?  If you get roommates you may even be able to live rent free.

: )

Ashley

Hey @Ken T.- 

Great question. That can be an issue for future financing opportunities for buyers.  But, if you get an all cash offer - shouldn't be an issue. I might reach out to a local lender in your area to get their intel.  Then if a certain institution can do the loan, you can let the buyer know which lender can help.

Ashley

I'd like more information too. Do you lend in Vermont?

Thanks!

@Nick S.

Hey Nick- Did you know that they can blow insulation into the walls by making holes in the walls? Instead of taking them all down and putting them all back up. It can still be pricey but over the long term might be worth while for you.

This brings up another point... Often times situations come up where we can choose one of two routes.  Again, not sure if you are going to be paying for the utilities - but it seems to be a waste to install more heating units if all the heat just escapes... Sounds like it's throwing away good money.  If the home is properly insulated as @Sean OReilly states - you could save the ongoing expense of paying for utilities and unnecessarily using up more utility resources...

Just my 2 cents...

Ashley : )

Hi @Kyle Penland

Some loans are assumable. It might make sense for the owner to review his closing documents with the bank.

On another note, are you sure you've tapped into all your resources?  If this looks like it's going to be a home run, have you considered cash out refinances or HELOCs? Or maybe even a loan against your retirement account?

I love creative financing solutions... If you want more tips - just private message me and I'd be happy to give them to you for free.

Ashley

Hey @Nick S.-

I am wondering if you have considered adding heating units inside the apartments that are cold?  Were you planning to pay for the gas usage for the tenants or split it based on size of each unit. (That may not even be legal based on your local laws.)

Recently, we've looked into turning our own house and our own rentals into more energy efficient. We are having solar installed on our roofs and the solar folks recommended a mitsubishi heating and cooling system as a really efficient way of heating spaces.  If you installed one of these in each cold unit, you could help to reduce your own utility expenses and help be better to the earth.

Hope this helps.

Ashley

p.s. heat normally rises, so if the colder units are upstairs, heat from below is likely to make them warmer.

Hey @Perry Ivy-

First thing you need to do is to research your local laws about your responsibilities. In our area, if the property is vacated the landlord must pay for the stuff left behind to be stored for 6 months.  Your location could be different and be aware that states and towns may have different rules.

Good luck!

Ashley

Hey @Cassandra L.-

I'd love to hear how your flips turn out.

The first option I'd suggest you research is to borrow against your primary residence.  See if you have any equity that you could access either via a cash out refinance or a home equity line of credit.  (Or maybe both.)

The beauty of a HELOC is that you don't have to use the funds right away and you can borrow against it over and over again as you see fit.

If you borrow against your primary you still get to take the tax breaks (interest tends to be tax deductible) because it's attached to your primary residence.

Start there, and if that isn't an option, I'd suggest checking out the options with local lenders about financing programs. As a heads up, some companies aren't interested in financing flips and some may charge you a fee if it is paid off shortly after the loan is originated.

Hope this helps!  If you want more info on creative financing options, I'd be happy to give some to you for free. Just private message me. : )
Ashley

Hey @Eddie Mateo!

Welcome and congrats on finishing up school. Life is too short to do sh*t you hate. Right? Glad you are thinking about it now. I'd suggest taking a look on this site to see who else is in your neck of the woods. There are sometimes MeetUp Groups that get together as well as REIA Chapters. I know we have a few of those in my area. Find the people that you click with and learn about what worked and didn't work for them.

And start researching financing options.  If you shoot me a private message and connection request, I'd be happy to give you a few resources to get you on the right track!

Ashley