All Forum Posts by: Bob Floss II

@Heather Carbone I have experience setting up complex layers for a real estate investment group. Just a heads up, when working with different partners across different LLC's that are layered, you'll need to invest some time into getting it set up properly.

@Royal Simpson I'd like to point out there are two different steps to the process. If there is a demo order on the property, that means it came from a building court case and Daley Center. When you buy the property, you can petition the court to remove the demo order because you are able to complete the work to the building to bring it up to code. That will only remove the order, the underlying case will remain open until all permits are pulled, work done, and the court appointed inspector approves of all the work done. Someone mentioned above, but its an important detail to get approval from the court appointed inspector. I've had permits get signed off by the city inspector, but the court appointed building inspector didn't approve of the work. It can be very difficult to get a refinance or loan done on the property until that case is dismissed. 

@Jacob Huston If you create an LLC, you need to give the investor some control and voting power.

To anyone reading this in 2020: This method worked great when we were doing it back in 2014 and 2015 and cranked out close to 100 flips. HUD used to have a huge inventory of homes. Now their inventory is next to nothing and usually in very remote areas.

@Patrick Hancock Unless the lender requires a single use entity for the loan or the asset is large (100+ units), I don't see the need to put into each individual LLC. I tell clients to separate out based on asset class and use. An LLC for your single family rentals and then cap the capacity, say 10 houses. An LLC for your 2 flats or duplexes, another for apartment buildings. ALWAYS keep your rental holdings in a separate LLC from your fix and flips. Same goes for property management and if you start a contracting company to pull your own permits. If you state allows series LLC's, it makes this much easier.

@Arcinio Arauz You are under contract with the agent so you cannot cut her out. I would concur with the suggestion above to reach out to the managing broker and explain that you need help.

They spend three days using high pressure sales tactics to get you to buy into their program that starts at $30,000 and goes to $50,000. Save that money, book yourself a really nice 5 star hotel room for 5 days, spend 3 of those days committing to waking up every morning and spending 10 hours reading and watching free youtube videos on real estate investing. Maybe treat yo self and get a massage the last day. You'll have more knowledge then the people who did the weekend course. 

I haven't read the complaint so I don't know the full extent of the accusations, but I did listen to one of Grants presentations on getting people to invest in his syndication deals. He came on a little too strong on projected returns for passive investors on a syndication deal. I knew it was only a matter of time before this happened. The syndication isn't the problem. The problem is he seemed to be targeting investors that had more of a "get rich quick" mindset and pulling them into his syndication that is meant for a slower, stabilized growth. He used his presentation skills to push a square peg in a round hole.

@Michael A. Soper JR I've never had an investor becoming PR and I think it would give the judge pause. They would prefer one of the heirs do it. You can submit the death certificates to the bank and have the PR sign the contract and do the short sale. 

@Daniel Rasmussen There's not enough discussion of this topic when investors talk about investment strategies. I always warn my clients that pulling your money out of a single family rental is challenging at best. Underwriters hate them and will either turn them away or give you a long list of requirements you can't possibly satisfy. I've had many clients go in with a portfolio ranging from 5 to 10 single family rentals and the banks treated them like horrible. The reality is you either need a private lender to put a mortgage on the property or a commercial lender that won't let you pull out as much equity as you were hoping. It can be done but you have to work hard at it.