All Forum Posts by: Account Closed

@Johnny George while Andrew is correct about how the due on sale clause works I personally don't recommend it unless you know your bank is not going to screw you over. Remember you are just a number to them, plus breaking your mortgage contract can potentially do more damage than good. You don't need the protection of an LLC in this scenario. What you need to do is use NREIG / REI Guard as your insurance provider and purchase an umbrella policy from them. You can have up to $10,000,000 in coverage with all those policies in place. REI Guard standard policies cover $1 million / 2 million aggregate on any property nationwide. The umbrella policies have various intervals. You will be easily covered under your personal name should you get sued. You really don't need an LLC unless you have the properties paid free and clear and can transfer them easily. The LLC is more of an accounting thing in my opinion. It keeps your financial assets separate from your personal for tax purposes. Yes it does have liability shielding too, but that's where insurance can take over. Hope this helps.

NREIG / REI Guard is the best option nationwide. Haven't found anyone that beats their policies. I use them exclusively for all my deals. http://nreig.com/

No it doesn't matter where they are located. So long as they're licensed and know what they're doing is what matters most. A lot of investors around the USA use CPA's in California or New York because they are real estate savvy. I personally choose to use a CPA near my house because I like face to face communication as I plan / expand my REI business. Some CPA's in other states will be open to video chats as well if you prefer that.

@Chris Chesser Here's the easy way to do a seller financed deal like this.  If the owner is well off like you say, then do this.  Put down anywhere from 0% to 3.5% as your down payment on the house.  Low interest rate in the ballpark of 3% to 5% to match current market rates and a 30 year fixed term.  Make sure to use a good loan servicer like FCI Servicing out of California.  They are one of the best and will handle all the tax paperwork for both you and the seller, plus make sure payments get where they need to be.  After you do the deal, the seller / prior owner needs to sell the mortgage on FCI Exchange or a similar platform.  That way he doesn't have to wait 30 years to get his money back.  He can sell the note / mortgage to another investor who wants the return over the next 30 years.  There are tons of younger investors out there who would want to buy a mortgage like this for their SDIRA or general investments.  This way you get a good rate, you have a good servicer in place, and your girlfriends dad can possibly get his money out of the house / mortgage if he sells the note to the right buyer.

Thanks @Brian Compton .  Very helpful.  Do they provide policy documents like a typical insurance carrier does?  Are these policies underwritten by any reputable firm like Lloyds of London, ASI, or some other company?  Or does RentSure maintain the pool of funds themselves?  How is the customer service?  Is there an account manager you can talk to over the phone if needed?

@Roy N. what insurance coverage do you have where it covers loss of rents from tenant damage + eviction? I use REI Guard for all my properties but they only cover typical losses due to acts of God, weather, the usual, etc. Malicious tenant damage is not covered under their policies.

That means nothing to me @Account Closed .  You don't have a profile photo.  Does that mean you're not legit?  Cmon dude....businesses leave off their addresses all the time for many reasons.  They are registered as a Colorado business on the secretary of state's website however - some dude in Canada owns the company.  Is there anyone else here that can provide more substance on them?  Does anyone use them for their rentals?

Hello, friends.  I am curious to know if anyone here uses Nationwide Rentsure (https://www.nationwiderentsure.com/).  I happened to find them randomly browsing around the internet.  They seem to fill a niche I've been needing to be filled for some time now.  They cover the loss of rents based on malicious tenant damage and also handle evictions.  Typical property insurance doesn't touch this area of landlording, and I feel like this is a solid deal.  Anyone had experience working with this company or similar ones?

Toledo is an interesting market.  Some properties work well and some don't.  I have two in Toledo that perform fairly decently.  The turnover can be frequent so make sure you use a good property manager to find the best tenants.  From a pricing standpoint you'll find incredible deals, but do your due diligence to ensure you don't get a money pit.

Really dude?  You're gonna give me the "Don't invest in real estate" garbage?  I totally agree with your earlier comments which is why I was asking people on this forum if there were other ways to protect oneself in deals like these.  Then you run your mouth about not investing in real estate using creative strategies...

There's a reason people use creative financing. Because conventional financing requires a W2 job. I have the money to invest clearly (and have great credit) but don't meet the blasted federal requirements to get a loan through a FDIC insured bank (W2 or two years of steady self-employment income). It's purely regulations that are screwing up our industry in so many ways. And don't tell me to go try and get another W2 based job. I've tried and the job market is junk right now in my industry. No one bothers to call you back (even though I'm perfectly qualified) so I'm taking the entrepreneurial route instead.

I'm going to continue investing in real estate.  If you don't have anything constructive to add to this conversation, don't bother posting again...