All Forum Posts by: Jason Zundel

Most traditional lenders, whether HELOC, refinance, or home equity loan, will be pulling and looking at your DTI. You can go the non-traditional route (hard money loan, personal loan, etc.) but those tend to be a higher interest rate that you are probably going to like to avoid the DTI being a factor.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Creative indeed!  My question would be on the value vs. the time spent.  You say you have two properties based on this strategy, but how many garage sales did you attend and how much time spent on those? In addition, what type of practice is generally yours (i.e. fix/fip, rehab, long term hold, etc.)?  Love the outside of the box thinking!

This is not an area that I practice in personally anymore, but you are on exactly the right track - get with a good professional.  Rezoning in some cities/counties is a breeze and in others it's a logistical (and financial) nightmare.  Even in the more difficult ones, finding the right person can make or break the opportunity.  Where this is a newer area to you, you will most likely need a partner (higher end payment based on equity split usually, but if it falls through you aren't out anything) or an experienced real estate attorney (fixed cost will often be lower, but you're making that payment whether things work out or not).  Best of luck!

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

 

Very helpful, thanks for sharing!

That's a fair point Don.  My reading of the question was tax deed properties, but if they are just buying tax liens, then that will decrease the amount of capital needed for sure, as well as the total amount of risk. That being said, still pretty risky in my opinion though I am a transaction attorney and quite risk averse - both personally and professionally!

Yikes, horror story indeed.  On the reviews, I like to look for 4-5 star ratings WITHOUT a review.  Honestly, that is more common for the day to day, busy investor who actually was happy.  When all the top tier ratings have long reviews, that often (not always, but often) can be an indicator of incentivization or paid reviews.  Nothing is 100%, but that's been helpful in weeding out service providers for me and my team.  Communication and transparency are absolutely key, but since those are yours, I'll go with expertise in the landlord/tenant laws of the state, especially lease details and evictions.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Couldn't agree more with Patrick and Don. I don't think you'll get the benefit you're hoping for, but you are still better served keeping the LLC disregarded when it owns property long-term to avoid the corporate taxes (esp. corporate long-term capital gains rates).

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

this is a very often misunderstood area, thanks for the explanation!

@Joseph Agins Gotcha.  In that case, where there isn't a formal document when the initial payment was made, the default treatment is not a loan, but a contribution.  Based on that, I tend to agree with @Patrick Roberts actually - is there a specific reason you need to treat it as a loan rather than a contribution? It will be much simpler from a paperwork standpoint, and so long as there isn't outstanding litigation or potential injury, you can directly withdraw the funds from the LLC. I would still love to see meeting minutes or corporate resolutions documenting the transfers (shocking, I know, the attorney likes paperwork), but it would be a much simpler and even safer process that way.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

This will depend on the content of the agreement you had with the renters - what type of security, collection, default, etc. provisions are within.  In addition, take a look at the renters themselves - you can't squeeze blood out of a turnip, so if they are essentially judgment proof, then getting the property back in your name and moving on with your life will be your best bet.  Otherwise, review the contract and fire away, though of course anytime you are contemplating collection efforts you should meet with an attorney as each state has different rules and requirements, but all of them are quite strict in this area.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.