All Forum Posts by: Desmond Pressey

 Thanks Scott! I’d love to chat with your associate.

Hi BP!

I’m working on a new construction project that I plan to raise capital for, let’s say about $300k to cover what the loan won’t. I’m trying to figure out the right business structure to move forward with. There will likely be just 3 members that are active in the deal and the rest will be passive investors. I’m hoping to structure it in a way that works for providing a return on the sell of the new construction in the most tax advantaged way possible. I’ve been reading on LLCs, Limited Partnerships, etc, and can’t seem to get a clear indication of which direction to go in.

I’d love to hear your thoughts!

Many thanks,

Desmond 

@George Despotopoulos

Hi George! This is super helpful. What are your thoughts on using a conventional loan for the refi? Couldn’t I get a much better interest rate than the 5+% that you described?

Thanks for your input!

@Timothy Lewis

Thanks! @Sean_Howell I’d be appreciate hearing your thoughts.

@Eric Johnson

Hi Eric! Yes it’s a legal two unit. The basement unit had been used as storage and molded so no one has rented it out.

Hi BP community!

I'm looking to get my first BRRRR property under contract within the next few days. I'm looking for some advice, and preferably, a lender relationship to do a few BRRRR deals with in the coming years. I'm just getting started, but my 3 year goal is to produce 6 figures of cash flow annually.

Right now I'm working on an off-market deal in Tallahassee FL. I've gotten the inspection done, some contractor estimates, and now I'm looking to partner with a lender to make sure I have the best financing deal structure to purchase, rehab, and then refinance in the next few months. I really like this deal because it's currently a SFH that really is a duplex once the basement unit is rehabbed. And there's a paying tenant in the top unit so early monthly costs are mitigated. Anyways! Any help would be totally appreciated!

Thanks!

@AJ H.

Hi AJ! Thanks for your response!

We’re pretty confident in the deal and we hope to get it done soon. Luckily, we’re working with mortgage companies who are offering a residential loan to us and allowing us to do a quitclaim deed to transfer the title. We’re still new on this so if I’m missing something, please let me know!

Thank you again!

Desmond

@Joseph Firmin

Thanks Joseph! Most of what you mentioned is correct. Most of my concerns are because my brother is new and just starting out in his career. He may not really know about DTI and it would be best to challenge him to learn the pros and cons of being part of the mortgage.

Thank you again for your advice!

Hi BP Community!

I'm happy to join a community of great individuals. I had a question about the best lending strategy for my first investment property. My plan is to split the down payment and profits with my sibling and transfer the title of the home to an LLC that we both will own. He's my younger brother and just started working and saving so this will probably be the only property he buys this year. I've had a couple of years saving up so I plan to close on at least one more property if not a couple more with either myself or some other friends.

For this first one, would it make sense to bring on my sibling as a co-borrower? I'm afraid that it may hurt his credit and put him at a higher DTI ratio. If the rent covered the payments that would that be an issue? I also would like for him to be able to build his credit. Would this be a good opportunity for that? Similarly, because I plan to buy more, would having a co-borrower give me more flexibility to acquire more property?

Thanks so much for your help BP community!

-Desmond