All Forum Posts by: Justin Sullivan

I did this with my businesses I have an LLC an S-corp and Personal accounts. My businesses loan or "donate" funds to others at times. I would def consult with you accountant but I have transferred funds from time to time. So just transfer everything over and quit claim the deeds to the s corp and mark everything you transfer as equity.

Hope this helps

@Kelly McJunkin

My wife and I had this same question up

Until about 3 months ago. We purchased a live in flip while doing other flips and buy and holds over the past 3 years. We have now decided to move from New Jersey to Arizona. We own 4 units in jersey which we intend on keeping. We originally intended on keeping our house as a rental since our mortgage is so low. This inflation on housing has driven our value so high we actually decided to sell instead. I say weigh your options and figure out what is best for your current situation. Will our house appraIse, yes. Will we regret not holding it, absolutely not. We decided the cash is more important at this point in time. We owe 125 snd original value was 200 it is high over 275 so we are going to cash out snd out that money into future investments. We have decided that is what’s best for us at this time in our lives and I think you should do the same. So cal values will for sure increase and you’ll be sitting pretty in 10-14 years. But is that what your looking for right now. Can you cash out on that $500k and turn that into 2 million over the next 10 years where is you left it in the house you would only be at 1.5? Think of it like that. What can you do with the cash if you take it out. If you don’t think you can do that and make enough money at your job than keep the house rent it out snd refi for investments.

We ultimately decided that making $500/montg isn’t worth what we can do with the 150 if we cash out now. So we are gonna cash out and invest hardcore until we make the sale worth way more than holding it. Well also most likely put some of that cash into several cash flowing Assests via down payments so well turn $500 cash flow into $5,000!

Good luck wish you the best!’

@Sean Delagrange

I personally like equities Assest a and holdings. I think capital sounds like a lender. The others are pretty generic and basic. Property group sounds like management company. My company name is equities.

Good luck

@Sean Delagrange

They will only ask for mortgage due if you transfer the deed to an LLC without getting a mortgage in that same LLC. With most mortgages the deed holder needs to match the mortgage holder. Read your Mortgage to see if you deed is transferable or not. Also it's a risk but doesn't always mean they will

Call it due. I wouldn’t risk

It myself but I also do everything out of my LLC's and always have. Only thing in my personal name is the house I live in.

@Elijah White

First thing is make sure you set aside a couple

Bucks for cap ex vacancy and repairs on every property. The numbers will vary for each property but that important to make sure you do. After your expense plus your escrow funds the remaining amount is your pure cash flow. When purchasing older properties your gonna have a ton of Matainence. One thing I would do to prevent losing your cashflow is the get a home inspection prior to closing and factor in those repairs from the start. That way you’ll still have your wanted cash flow each month. I prefer value add properties so that way I do the repairs myself and I know that they are done and done correctly. I still set my money aside but at least I know I won’t have any issues right away.(more likely at least)

A couple of suggestions I have right now are to one get a home inspection of the property. I know this is extra money right now but at least you can see what else is needing the be fixed or will need it shortly. I am in construction so I can see issues but you always need to get inspections and sewer scopes. This will let you know what type of condition your properties are in.

Next I would make sure the figure out what issues you need to fix prior to closing snd do the repairs immediately before you put a tenant in there. If your buying them occupied work around the tenant to get the needed repairs snd factor these cost into your purchase so

You don’t lose cash flow anymore. Go for seller concession to add extra money to your mortgage or just pay out of pocket for the repairs.

To me this is common in real estate. Houses break down and need fixing. You just have to time the fixing correctly so it doesn’t cost you!

Good luck man snd just hang in there. Investing is a roller coaster sometimes but if done correctly it can be very profitable!

I wouldn't say you can't get in but, I will say that it will take a little more work on your end to get started in this market. I have been investing for over 3 years now and I am really starting to take off and find my way right now even in this tough market. Maybe you try some off market advertising since everything on MLS is going way to high. I used to source most of my deals off the MLS but recently have been doing direct mail marketing. Anytime is a good time to get into real estate but just keep in mind you don't want to force a deal just for a deal. I have came across several deals that I had to pass up on because the other people drove them up to high. Name of the game is deal flow and its all about the numbers. If the numbers work then go for it.

You could always partner up with someone who is experienced and has a steady flow of deals and just be a money partner for now. This will allow you to get experience with investing and also get a return, but it should mitigate some of the risks as a newbie investor. I spent a while basically a year running numbers on deal after deal until I felt comfortable moving forward and putting money on the line. We also were renovating our personal home at this time which we treated as a flip and to date it still my best investment. 

So just know there is a ton of ways to get involved and the best time is yesterday. Don't wait to start investing. Mitigate your risks by being sure in yourself and your choice of deal and start moving. The best way to learn is through experience. You can read all the books in the world and speak with the most successful people but ultimately it means nothing until you experience it for yourself. Good luck and if you have any questions about the construction side of investing let me know. I ran a general contracting company for years and just recently shut it down to focus more on my own investments. But I have flipped tons of houses over the years so I know how the process goes. 

Wish you well.

You can google LLC information and start fishing through the links and pick up whatever information you need. I have several LLC's and I would never invest with them. I feel as though the money is much much easier to get with an LLC. How can you get a construction loan to renovate a property in your personal name? An attorney would have all the info you need on LLC and accountant would have the tax advantages of using an LLC. I believe an LLC would open up more doors for you. Especially if your investing with family. You definitely want to protect yourselves and structure the LLC accordingly so everyone knows there roles. You could also do a JV agreement. That's another option. You just have to do your research. Start spending your time reading articles books you tube videos about REI and any other questions you have. The more you prepare and learn the better you'll be. Experience is the best teacher though. So get your info then get out there and do a deal!

@Evan Westerman

Depends on your area and what others are doing. I like that you said you’ll check mls and see what other properties have. The seamless vinyl throughout is nice just make sure it’s water proof flooring. The tile would be more expensive to install so keep that in mind. I’ve done it both ways but usually if I’m doing vinyl I try to do it throughout. Also depends on the layout. If bathroom is upstairs I might do tile on the floor. Best bet is to check you local market and stick to what is already working at you smallest expense while still making it nice!!!!

@Liam Hanlon

Is your goal to be a DIY investor? If so then go ahead and do the work yourself. I am a contractor snd investor and I outsource everything to my subs. I used to do everything on my own but it’s too time consuming for me

and no ability to scale that way. Just keep the end goal in mind there. Next it depends on your area snd other rentals as to how nice you Renovate your kitchens. Some might paint the older cabinets but your area might call

For new shaker. Now you realize

You can’t get a quality tenant or a tenant at

Your price point. Don’t over renovate but don’t under renovate either. I try to go a little

Above the norm for the area so my investments stand out. I’ve primarily flipped but I’ve done tons of remodels for other rental investors. I always recommend a little above and they get a quality tenant and the highest rent ASAP. I would call and go see other rentals in your area and ask questions how long has it been for rent? How many applications do you have? If someone says it’s got 20+ apps then you know that’s The model you want to follow. Also I haven’t seen pictures of your kitchens to

Be able to give you ideas on what to do. I know in my area some rentals markets call for quartz while others it would be insane to put anything above laminate in there. Just 20 mins away from each other as well. So I say do your research and renovate according to your area. Use nice looking but in expensive finishes. I agree

With another always buy decent faucets never the cheapest. I use delta but def want metal parts not plastic. Take care and enjoy!!

@Paul Jurczyk

@david Robinson Has copied what I said to him

About commercial

Vs residential mortgage loans.

I am in south jersey area so we should def connect and network. You could always get a HELOC on the property and keep the same mortgage you currently have. Although it seems like you want to refi for cash and a better rate. I have friend who gets mortgages in his personal name but switches the title to LLC. Yes there is a risk of them calling the loan due. I have no experience with this

But I will reach out to him and ask him what he does. Commercial money is much higher

But easier to get. I honestly factor all of my

Deals with commercial money and rates. I never run anything at personal rates even if I am going to get them. I consider that just a bonus if it happens