All Forum Posts by: Joshuam R.

Thank you for your input @Stephanie P. , @Lyndsay Zwirlein, @Erik Estrada

Correct. At this moment in time my goal is just structure and organization sort of getting ready for few years down the line. I am looking to transfer my SFH into my SMLLC, which the same a LLC and managed by its DBA.

So in regards to lets say the SFH in my personal name a Heloc is possible

But once it is in an LLC and no refi , what would be the equivalent to a Heloc if any?

@Dominick Johnson

Do you think that is solid to say if the long-term goal is to keep all properties, that go ahead and transfer your SFH properties to your LLC, once you gather a few then go for portfolio lending / refinance to liquify your equity?

 Correct. Agree.

 Yes, but not if you are the owner of the SMLLC, that is where I was trying to see if the same would play out against that statement.

"....If you buy a property and transfer ownership to your LLC, you might have some issues when you go to refinance. Fannie and Freddie will only buy or guarantee loans that are issued to a person, not a business entity. This means, residential lenders, who offer the most attractive rates won't refinance a property that is held by an LLC...."

Is that statement still true if the owner transfers the property to their own Single Member LLC, will lenders consider refinancing for such?

I read your posted question and can assume you already made your choice to rent to them. Which I do like your observation and the decision to do so. I would do the same. I like to review the whole picture, example not a strong credit score, I then review the history on the report and can see what chess playing financial moves they had to do, (school system does not train us to master budgets, credit cards, etc, it is learned in the school of life) reviewing the history report you can see which bill account they made priority and which ones they didn't, and if they decided to not pay or skip few payments on non-essential accounts, that's okay with me. Along with good work history and income, confirming this with bank statements and tax returns.

Your observation is fair especially when it is 5 years ago, and the pattern stopped. But contrast to the same scenario let's say criminal records occur within a year or so that's risky for me because there is no space to know if it is a downward spiral vs lesson learned.

Your answer is not a strong one and it is not fair, not helpful for others reading on this post thread. Next time expand your thoughts or knowledge vs just a quick answer. Thanks.

Your statement applies to SMLLC, but it does not apply if you file as S-Corp to IRS:

• Since you are a single-member LLC, you will initially be classified as a disregarded entity for the purposes of filing a federal tax return.
  • If the only member of the LLC is an individual, the LLC income and expenses are reported on Form 1040 (U.S. Individual Income Tax Return), Schedule C, E, or F.
  • If the only member of the LLC is not an individual, the LLC income and expenses are reported on the owner/member's tax return.
• If you do not wish to accept the default classification of disregarded entity, you can:
  • File Form 8832 (Entity Classification Election) to elect corporate status, or
  • File Form 2553 (Election by a Small Business Corporation) to elect S corporation status.
• Single-member LLCs may not file a partnership return.

Also you did not truly engage in sharing on the points I posted. .....(where is the down vote button lol)

I skip a listed checklist item.

I did this instead created a key plan page, and a page for each room in the house, we all walked each room, and they have the chance to make notes or leave the page blank, each page is initialed by each member. The same will be done when they leave.

I also document each room with pictures taken the day off all angles, all walls, ceiling, floor, inside cabinets, everything. After it is done with and documents signed, I share copies with them and also picture album.

Treat this process like renting on Turo.

Hey Olivia, welcome to the forums!

What are your top 3 niches you are enjoying learning about and or navigating towards?