All Forum Posts by: Jack Lee

Hey guys,

I recently talked to some mortgage brokers and they mentioned that they refuse to give non-commercial loans to a new LLC. So far so good. No news here. Someone has to be personally liable.

My questions are the following:
1. How can investors put the property into the LLC? If this is not possible, what is the purpose to opening LLCs?

2. Is there a financial/corporate innovation that allows the lender to recourse on loans but offer limited liability ONLY against tenant lawsuits?

Thanks

Hey Guys,

So as an absentee investor, is the best course of action to select a property management company to do the management of the house? Do they take care of the maintenance and tenant relations?

I understand there are lazy management companies so I was wondering if there alternative methods.

Thanks

I'd be interested in this as well.

Shouldn't there be a bias against renting to Frats? If I recall, the "frat floor effect" will require either hardwood flooring or bi-annual carpet replacement.

Can you expand a little bit more about private party leads? Are you referring to bird dogs?

Great. I just wanted to make sure my own logic matched the rest of BP's.

Where do people on BP find properties to buy? Realtors with established connection, Realtor.com, Loopnet??

Hey guys,

I've been doing some thinking and was wonder what most people used on BP. It seems like from an investment standard the 30yr is better because the excess cash can yield higher rates elsewhere than sitting as equity.

I'm interested in people's opinions on whether depreciation should be included. Depreciation directly reduces your tax bill and puts more money in your pockets at the end of every year.

WHy would depreciation not be included? It shelters your money and should increase the amount of money put into your pocket at the end of every month.

It actually improves cashflow lol.

I was just asking because I did some modeling with the assumption that the Valuation is solely depending on the NOI and average cap rate. It turns out that the principal deduction is actually a pretty significant part of the gains at a 30 year amortization schedule.

My thinking was: you just take NOI divided by cap rate. Why would equity be wiped out by depreciation if operations don't deteriorate?