All Forum Posts by: Dennis Tierney

I have been primarily a buyer over the years and have never signed a buyer's agreement with an agent. They are more likely to bring you a property if they get both sides of a deal and don't have to split the comission. The only time I've signed an agrement is as a seller.

@Dave Vona Welcome to the Omaha area. I am a member of MOPOA (Metropolitan Omaha Property Owners Assoc.) which is predominately buy and hold investors. We meet Mon. evenings Sept.-May with one this evening. There are 2 other investor meetings, one predominately flippers called omaharealestatemeetup.com that will meet next 9/26 and the other Omaha1reia.com meets next 7/17. Good luck.

Dennis

Evan:  You'll have to tell him that unless he can produce financials and a rent roll he won't be able to sell it. Without them no bank will give  a loan so no investor will buy it. 

@Christina Luton I have never had a problem getting a bank loan and all of my properties are owned in LLCs. If you want the trust involved just have the trust the owner of the LLC. I have several LLCs that are 50% owned by my revocable trust and 50% by my wife's. You'll be personally signing for the loan anyway so it doesn't matter to the bank.

Dennis

Matt: If you know and have a previous relaionship with the investors then the SEC business isn't relevant. You can just set up the LLC as you said and the investor's percentage is as stated in the LLC and as negotiated between you. A lawyer that has experience in syndications can set this up easily. With the 2 syndications I set up I was the manager of the sydicate and handled the checkbook and made the quarterly distributions.

The next Monday night meeting is 6:45 pm at Westside Community Center (108th and Grover) on September 10th. There'll be free food at this one!

@Zach Bollman Commercial loans, which is the bank department to talk to, are different in that you can get 20-25 yr. amortization but they usually balloon in 5-10 yrs. and then you have to refi. The longer the term the rate goes higher but you don't have as much interest rate risk. Those banks that are looking for more business will be willing to go longer before the balloon. A good local banker is a valuable asset in this biz. Credit unions also do commercial loans but those around here tend to have shorter amortization periods.

Since the interest on a HELOC is no longer deductable I would think you'd be better off getting a line of credit to the business then it is a deductable business expense.

@Taheerah Amica. I have owned multifamily for 13 yrs. and having an LLC makes no difference to the bank. They will look at your personal credit and you will personally sign for the loan. The LLC is for legal/asset protection and doesn't change anything for the bank. Regarding taking money out of the pension are you going to pay penalty fees for taking it out too young? If so you may want to rethink your strategy and use a SDIRA and hold the property there. That is more complicated but doable.

I have had a SDIRA since 2007 and have never needed a transaction reviewed. It isn't an IRA requirement but a function of your custodian/trust company. Not sure what you can do at this point since they set it up that way. Did you consult with a lawyer when it was set up? If so you might contact him to see if the operating agreement can be changed.