All Forum Posts by: Jeff Miller

Quote from @Tom S.:

@Jeff Miller  So the property you inherited is worth $200k and you want to get a $150k loan on it?  Why not just get a cash out mortgage on that new place? 

I guess I have a tendency to make things as difficult as possible. Mainly I was thinking since it is not rented yet I may have a hard time getting a loan unless it was an investment property loan. I will apply to some local lenders and see where I can get going the cash out mtg route.

So hopefully to clarify, the only reason I want to use the LLC is so that I am the Seller and the LLC is the buyer. Then I, as the seller want to accept a deffered down payment, or carryover financing. So lets say the property is valued at 200,000 could a brand new LLC borrow 150,000 to 160,000 to purchase an investment property where the rent would be 1400 to 1500/month.

Or since I own the LLC is it strictly based on my ability to get financed?

So here is my Idea, maybe someone can tell me if it is a good one, or not.

I have a MTG on my current home, we have approx 40k in equity. I just inherited a 2 BR 1 Bath in Ogden,UT. It needs a little work to be rent ready, like 15k. I want to borrow against this property to get it fixed up and possibly buy another rental. Once repairs are done I believe I could get 1300 to 1400 rent.

I started an LLC and want the LLC to buy the property from me, I was wondering if that would work? Could I as the property owner sell my own LLC the property, and could I do a defered down payment for the 25% that most lenders seem to want?

Hopefully that all makes sense.

Once we get this rolling, we will definitely be looking to the south, Ultimately I would like to have 5 to 10 properties throught Utah. A couple up North here then some around the Provo/ Orem area and a few in St George. Then I might focus in other states. Of course the order of all that will be driven by deals and connections made a long the way. Definitely in it for the long game. 6 months ago I could have pulled the trigger if I had my mind in it, then of course life happens and now we have some work to do before lenders will give us the time of day. 

Thanks for the tip, it is actually on my to do list, I heard REIA talked about on the podcast and plan on searching for one in Utah.

Thanks for the reply. My wife and I are currently discussing all the options. Outside of figuring out some other creative financing we think it will be about 6 months and we should be ready to hit the ground running. Our credit scores took a big hit recently as we have been helping my son with his custody case, so we maxed out our credit paying for attorneys and all that fun stuff, then we had a late payment. But we are paying all that back down, so as our balances decrease and we get farther away from that missed payment we will be able to get a loan on the house we inherited and use that to get us going on some income properties or maybe a flip.

Finally breaking out of the matrix. Like the Majority of people, as Rich Dad puts it I have been living in fear. I have no savings, and our debt to income isn't great right now, but we are making progress. I inherited a house and am currently exploring options to use it to get money to consolidate some of our debt and potentially have money for a multifamily. Open to anything really, single family, commercial, something to flip. I just don't want to sit around waiting for my next paycheck anymore. Listening to the podcast, reading some books, and starting to try to connect with the right people. That last one will be the hardest for me, I am not usually a social person. Time to change that. 

I am looking to start in Northern Utah but not confined to it. I want to invest in other states as well and not opposed to our first deal being out of state.