All Forum Posts by: Dan LaFontaine

To @Crystal Smith's point, appraisers only look as sold comps, so past data. This is true even of ARV appraisals. The predict the future product, but still apply past data to determine the value. It would take a big shift and some time before the average of the data points begins to drop.

@Michael M.    

The Mortgage

-as noted above, a conventional mortgage will not allow you do transfer to the LLC.

-"everyone does it" has rarely ever been reliable advice, ask anyone who has ever used that as an excuse with someone suing them, a bank, the SEC, the IRS, how that went!

-but speak to your mortgage banker to discuss what might be possible.

-now (in a covid/post-covid economy) is certainly not the time to risk a bank calling your debt.

The LLC

-you should have a good registered agent, they're quite cheap.

-you can use their address which also allows you to publish in their area which will save you money and avoid your address becoming public.

Insurance

-a good policy is not mutually exclusive with an LLC for protection, even if you did move the property to the LLC, you'd still want a solid umbrella.

-use an independent agent or broker to ensure you have the right coverage for your circumstances.

Good luck.

@LaVonne Eaton just want to second everything @Chris Levarek offered as (very good) advice.  1) call a RE attorney immediately  2) if you know any of the other investors or can find out who they are, get some intel and possibly form strategy together. If legal fees are too much for you, you might be able to share with other investors in your same circumstances.  And I was also going to advise you pick up Joe Fairless' book and give it a quick read to get a better understanding of how things SHOULD be done by the sponsor.  This one: https://amzn.to/3diMwu0.  Good luck.

Glad everyone enjoyed BEC2020 and glad it was not a few weeks later given the unfortunate current circumstances.  Joe & team always put on a top notch conference and it would seem the timing was on point, thankfully.  Be safe all.

@Marci Stein Looks like you have a nice nice portfolio up there, well done.  I'm curious what towns you invest in?

@Angel Garibay regarding proof of funds...

There are some services out there which provide POF letters for a fee. I can't for which are trustworthy or credible, but there are some reputable ones. However a lot of agents or sellers won't accept these as they often show the $ in someone else's custody.

If you're working with hard money lenders already, some of them will be happy to provide a POF for free to try to win your business, assuming they like the deal of course. And they will often customize if for you specific needs. But be ready to make a compelling deal pitch before that's on the table.

@Kelly Wesley Anything you would consider LegalZoom for, you might also consider ink file as they charge significantly less in many cases the process is clearer and the pricing more transparent.

anything you would consider LegalZoom for, you might also consider ink file as they charge significantly less in many cases the process is clearer and the pricing more transparent.

those solutions will certainly save you some meaningful money upfront, and it’s actually Very rare for them to be set up incorrectly as it’s quite simple and those businesses are absolute expert’s. It’s your deal documents that are tricky as they are different in every case.

Very rare for them to be set up incorrectly as it’s quite simple and those businesses are absolute expert’s. It’s your deal documents that are tricky as they are different in every case.

Sure an attorney can do a great job, but they are definitely substantially more expensive and in many cases overwork the matter, especially if multiple people at a firm are touching the file. It’s unfortunately baked into that business model.  There are certainly attorneys who are well priced and who are efficient with their time, but quality is still difficult to assess without having first worked with them. So unless someone hands you a personal referral to someone who fits all the criteria, it can take some time to find the right person. So once you do hold onto them!

But quality is difficult to assess without having first worked with them. So unless someone hands you a personal referral to someone who fits all the criteria, it can take some time to find the right person. The once you do hold onto them!

A good middle solution might be a UpCounsel. It’s like the Uber of legal services. So you get the accessibility and the ease of the platform services referenced above, the expertise of actual attorneys, and a price that is probably closer to the platform services than full attorneys fees. You can very easily bit out your need. You also get to check reviews which is helpful when not sure who to hire. Overtime you can try a few people and then stick with whoever you like best. But ideally do you want to stick to one person so that they can also review deal documents. The continuity wheel drive efficiency. And with those savings it’s easier to afford reviewing everything and being thorough.

The continuity will drive efficiency. And with those savings it’s easier to afford reviewing everything and being thorough.

Good luck on your journey.

@Breelon Bryant for public disclosure purposes... Property tax information is public data. 

1) google is your friend. 
2) search prior HML posts And articles here on BP, there is some great content.
3) BP has a list or featured HML’s. Review their websites. 
4) give a few a call and discuss their process and requirements. 
5) plan, model a deal, and get back in touch to stress test it. 
6) if it’s of interest to most of them, refine it and then pitch a number of lenders. 

And keep in mind...

Terms are important, but never as important as credibility and relationship. The right HML is the one that will most work in partnership with you, not necessarily give you the absolute best terms.

@Breelon Bryant they are usually pretty far off of market value. Even if it’s a recent assessment.   As for Zillow, don’t trust the Zestimate either. There are some sub maker keys and areas where it’s pretty close, say in relatively homogenous neighborhoods with lots of data points available, but in general there are far too many local market nuances and recent trends that the algorithm doesn’t capture.  Sure use it as a directional clue, but find comps yourself and build your own estimate, or work with an agent you trust.