All Forum Posts by: Jon A.

I have seen this topic in other forums and I don't understand how you benefit from loaning your LLC money. Can someone elaborate on this topic?

You can try cash for keys or you can could simply try and help this person find a place to live. I have helped tenants find places to live before by reaching out to fellow landlords. You could also go the eviction route. I think those are probably your only 3 options. 

Never accept partial rent. Enforce your late fees. Give them a 5 day pay or quit. If I were you I would google and print out your states Landlord/ tenant laws and get to know them very well. I am sure they are amenable to a payment plan, who wouldn't be? You need to figure out if you are a landlord/housing provider or want to babysit someone who will live off your kindness. You both signed a contract and they are not holding up their end of the contract. Your lease states the contract and the reprecussions for either party not fulfilling that contract. It is that simple. There are so many people out there needing housing and this person is simply occupying a home that someone else would glady pay for. 

 I have always been under the impression that private money lenders and hard money lenders were for short periods of time. For example, someone that wants to fix and flip or someone who plans on refinancing or selling in the near future. Is that correct? Please educate me about private money lenders if you can. 

Thanks for advice. The property is a duplex that is non owner occupied. It is an investment property. We are at about a 40% LTV with both loans combined. We have both been self employed for the last couple of years. I have been self employed most of my life and my wife lost her job during the pandemic. So our income has dropped but we also sold a property. FICO is somewhere around 720-740. The home was built in 1904 and had a new roof put on about 3 years ago, exterior was painted this year. Electrical was redone before purchase and new windows also. We have owned the property as a rental for 15 years. The upstairs has been remodeled and is being rented as a furnished mid term rental with a 6 month lease in place. The downstairs has long term tenants in it on a rolling month to month lease at this point in time. The rent is low for the area. This is a non conforming duplex. It can easily be converted to a SFH with the removal of a small wall next to the stairs. I have only spoken to one lender locally and they said conventional was not possible at this time. To be honest, goals are a tough one for us. One would be to have decent health care for the future. I am ok with DSCR and have been doing all the reading I can about it. From what I understand it has a 5 yr prepayment penalty usually that steps down on an annual basis. So 5% penalty the first year, 4% penalty the second year, etc. I am also realizing the property has to be in an LLC which means you cannot co mingle funds and an accountant will charge separately for filing those taxes. Does all this sound correct? Any thoughts you can add would be greatly appreciated.

This is what we are considering but I am not sure how much it would really effect our DTI. Besides that, we would like to keep it.

We own a duplex with a DSCR of 1.5 (from what I understand) and about 60% equity. When the pandemic hit we took out an equity line and I pulled all the cash out and put into a savings account out of fear that they would cancel the equity line if we did not use it. Our DTI is obviously a problem at this point. I am assuming due to the HELOC and the fact that we are both self employed. I am looking for a lender that can help us refinance both loans into one fixed rate as the HELOC has a variable rate attached. Does anyone have any recommendations for a lender or any advice on how we can restructure these loans? For example, pay off the heloc maybe to reduce DTI? We need a lender that is able to have a converstaion about what we are trying to do and not just a website that we punch numbers into and wait on a phone call only to be rejected.

Read what you wrote in your post. There is your answer. It is almost like you are trying to talk yourself out of your own no pet policy.

The homebiogas system looks pretty interesting. Are you saying that human waste goes in there also? For being off grid in my area that is the barrier of entry. Septic and water. Composting toilets are not allowed here and neither is collecting rain water. Insane.