All Forum Posts by: Corey Davis

With an LLC properly set up for multiple income property purchases, you actually don't have these concerns to deal with.

Here is the quote from j Martin I was referring to earlier. This is from another forum post on this subject:

If the strong partner guarantees the deal rather than signs directly, it is a contingent liability rather than direct liability. It is often-times not directly underwritten as debt as long as the deal is paying for itself.. Especially if the guarantor is very strong, has CF, liquidity, NW, etc..

With strong enough guarantor(s), you may be able to get a non-recourse loan for another 25-50bp. This avoids the debt going on anyone's credit. Ironically, you need a very strong partner for the Bank to have enough confidence to not make any natural person sign.. But experience will probably be important to them too.. With this strategy, you can finance as much as you can put downpayments on, although they might want 25-30% down for non-recourse.

I think we are getting more into the subject of business formation and corporate structuring than creative real estate financing. I know there are BP members with strong legal backgrounds that would be of some service in this post.

Anyone?

@Cindy Margheim Cindy, the area you described would lead me to believe current market value on the property is 250-300k. In that neighborhood you should be receiving higher rents, but probably not enough to be considered decent cash flow if it is your only property. What is your goal for the home?

@Account Closed I've been doing the same thing. I contract the property, qualify with a HML, then post in the BP marketplace to see if there are any PM lenders that would like to replace my HML. I'm pretty sure I'm not violating any laws, but you have me concerned. Which laws specifically did you have questions on?

@Cindy Margheim Cindy, I'm familiar with Portland. Tell us more about the house, what neighborhood is it in?

The personal income to debt ratio of the guarantor who is a partner in an LLC is not affected by purchases made under the LLC. If you are doing buy and hold, form an LLC with your credit partner as your chief financial officer, and you have a much greater capacity to purchase on credit without over extending. @J Martin would be a great person to ask about this.

I really feel credit partners are only great for flips if you're not going to use an LLC.

I'm currently working with Hannah Bellairs and couldn't be happier, just curious if anyone has had a different experience.

There's a great page on tinting your own paints here:

http://www.houzz.com/ideabooks/5024493/list/Tint-Your-Own-Paint-for-New-Looking-Walls

I know this sounds funny, but as soon as I have the keys in my hand, the first thing I do is start looking for buyers...

I've had amazing results with a 1/20 hydrogen peroxide/water solution on hardwoods. Mopping a heavy amount onto the floors and letting it dry under a heated blower, starting with the heavy stains first, then the entire floor. Not only does it work miracles on pet stains, it will even out the uneven coloration from wear and tear. Keep in mind the floors will need to be resealed when dry.

• “Markets always change, and as soon as there’s downturn, cleanliness becomes a major value.”
  -Donald Trump

@Bryan Brashear Hey Bryan! I'm doing some flips, buy and holds, and property management in Portland this year as well. I have a great agent, some great resources for flipping, and have even started to come across deals that I'm turning down because I've got a full plate already. I'm also constantly building my construction contact database, looking for new JV partners and investors, and always open to entertain new investment ideas. Hit me up if you wanna compare notes, or get referrals.