All Forum Posts by: Matt Crusinberry

@Account Closed, You cannot acquire an FHA loan via an LLC, FHA is for owner occupied. If I were you guys, I would search for off market deals in B-C neighborhoods. Conduct some "driving for dollars" or a yellow letter campaign as you continue to study your markets and learn everything you can about real estate. Continue building your account, as the 25k will go quickly in either rehabs or upon down payment. Look into seller financing, subject-to's, master leasing, or other options as a means to get into a deal.

Feel free to hit me up if you have follow on questions, and I'll do my best to help you out. Good luck!

@Suzanne Lee, Yes you can pull your own comps via zillow, realtor.com, etc... You do not need a realtor, but it will help save you time on a lot of other things that you may not be familiar with (i.e. understanding comps, negotiating on your behalf, sending you updated listings, and potentially off market deals/pocket listings, and so much more). We used a realtor when we first started, and we learned a lot from them. We also learned a lot just from reading the books and watching the videos from BP. I hope this helps, and good luck!

@Selise Parker, This question has been asked and answered a lot on this site. You may want to search it out in the search bar at the top of BP's page for additional ideas. My recommendation would be to visit the property's county courthouse and figure out the auction dates and attend as many as possible. These people are typically cash buyers. I would also utilize FB, looking up the yard sale sites where you'll see people listing their properties (either for rent or sale). Reach out to these people as well, and continue on down the line. I wish you the best of luck!

@Chase Scroggins, It would actually be easier to just check out the different sites that are available. They will give you a price for the exact information you're looking for, and than just compare and contrast. Good luck!

@Andrew Caldieraro, It is possible, but as you mentioned, you'll have to find a brokerage that will allow it. Also keep in mind that you'll have to pay to stay current as well. 

We do this, and it has it's advantages and disadvantages, but no different than anything else. We like it because it not only allows us to view the MLS, which I would say Realtor.com is probably the closest website when properties go live on the MLS, but the MLS also allows us to view other things as well (i.e. expired listings, setting up viewings with little time, etc...).

@Jody Train, 

My question to you would be, what are the neighboring houses with similar sq ft, bed, and baths selling for? Your neighborhood is going to come into play. I realize that you're doing a lot of great things inside the house, which is awesome. The one thing you're going to want to keep in mind is the neighborhood. You may have the nicest house on the block, but the appraiser is going to be looking at other houses like yours. I would look to see what has sold in/around your area, and use that as a base to how nice you want to make yours. My understanding is that you don't intend on flipping this either, but you just want a HELOC. You may want to save some of that money for your other real estate endeavors. I hope this helps, and good luck!

@Andrew Quinn, To figure out your ARV, you're going to want to view other properties that have sold and are similar in size and location (Comp's for 1-12 months, location dependent). You're essentially trying to find out what the property will appraise for once you complete your rehab. You can also contact a realtor and ask them to run CMA's for you to get a better idea as well.

@Rodney Wright, I have refinanced with an LLC and it was not a problem. The bank will put it in the LLC, but you personally will be checked as if you were putting it into your own name (if it's a new LLC). You can do either or, but when switching it from one to the other... Russell is correct. I personally don't switch our stuff in and out of LLC's, but it's whatever works best for you.

@Rodney Wright, I'm assuming you are talking about 4 units or less, and yes a bank will refinance on an LLC. You'll be speaking with your commercial lender vs conventional when dealing with the bank for this action though. I would speak with the bank and find out what they are offering in regards to the loan you'll be able to acquire. This will help you decide whether to do a LLC or your personal name as well (commercial vs. conventional loan rates).

There are other entities that you can put the property into, but I would recommend consulting your CPA for what you're trying to accomplish (or just to get information at the very least). Good luck!

@Bruce Gibson, Every area is going to be different. I would recommend you contacting the local personnel that you want and ask them. Some contractors will give free quotes, however I recommend tossing them a tip for their time (especially if you want to use them again in the future). In regards to an attorney, they will usually have a set price for their time.