All Forum Posts by: Jeremy Scherer

The mortgage broker was wrong. He didn't understand what I was asking. After doing more research I think I may have gotten to the bottom of this. I think the issue is not the lender you use or that they all have the same clause, but that the majority of these loans are conventional government backed loans. All of the Freddie and Fannie backed loans are for personal use, and transferring to an LLC, means it would be used for a business. It seems like the only legal way to have the deed, mortgage, and lien in the LLC name is to do a commercial loan. This can still be done on a residential property, it just requires more money down a little higher rate, and a shorter term. I think this is where I have heard people talking about using the limited amount of residential loans you can get in your name as "parking spots" until they are able to transfer everything to the commercial side. For example, secure the loan originally as a conventional loan, and once you are in a better equity position (mortgage pay down and appreciation) refinance into a commercial loan. I'm glad I'm trying to figure this out as I go. If I tried to do it all ahead of time I may have never gotten started.

I'm closing on my second SFH this month in west Michigan (Grand Rapids). I'm looking long term and decided to set up an LLC (2 actually, but long story). Now that the LLCs are set up I want to transfer the mortgage and deed on the first one into the LLC. The lender will not allow this, even if I personally guarantee the loan. They told told me to pay it off and refinance with another lender. I called twice to see if I got the same answer both times. The broker I'm using now on the second property says this lender will allow it post close, no issues. Obviously I've learned my lesson and know to watch out for this in the future. Any ideas or suggestions for me regarding the first property with the lender that won't allow the transfer. Thanks, Jeremy

Hey Kyle, I just started investing in Grand Rapids. I bought my first rental last year, and just put my second one under contract last month. My appointment for the certification on my first property is next week - we applied 11 months ago. I can tell you more after that. At this point all I know is that they are very far behind, lol. From what I've heard from other investors it is like a lot of other inspections. If they start to find problems/issues, and it is clear that you have made no effort to be compliant they will continue to look and dig for more. If you address issues, present a quality property, and make it clear that you intend to do everything right and keep everything safe for the tenants it shouldn't be a big deal. Good luck investing!

Great information! Thanks for the insight.

Anderson Brothers Steamatic was recommended to me by a home inspector (616) 949-2453. He said they do great work at fair prices. Good luck.

I'm with Jeb Brilliant - there is value in all of the episodes. I started listening at around 120 when each one came out, but I also started at the beginning while I was waiting for new ones to be released. If you are new (like me, just closed in my first deal) you can probably learn from every episode. I haven't been disappointed yet.

@Kurt Bouma - thanks for the tip on the Rental Property Owners Association.  Is this different than the group that meets on the 2nd Monday monthly at BWW?

@Tim VandenToorn - I have an issue with online reviews. I will read them, but I put more weight in the one referral from my coworker that has used the PM for years. When we were shopping he was straight forward, and made sure we weren't looking at properties that wouldn't be good rentals. He knows the area down to individual streets. Most importantly he owns rentals, manages close to 50, had a security deposit on mine before we even closed, and had a lease right after closing. So far I've been more than impressed. 

I better leave a good review today!

@Garrett H. & @Tim VandenToorn - The property is in NW Grand Rapids. A block north of Leonard and about a mile west of 131.  I am using American Realty for the PM side. The guy I'm using came highly recommended from a coworker of mine. So far I have been extremely pleased. 

@Al Williamson - I'm with you, I'm confident I'll learn more by doing than I have in the last couple of years of "learning".

@Paul Leason - I did use financing, and I plan on financing the next one too. Would love to be able to pay cash, but with low rates and just getting started I'm looking at acquiring as much as I can now and maybe making some adjustments to my portfolio and finances later. Thanks for the heads up in the cert. 

Thanks to everyone for all of the support and advice!

Michael Boyer Thanks for the advice on the Schedule C. I'll look into that ASAP.