All Forum Posts by: Kayla Holbert

@Martin Vehlow Thanks for the links. I'll give them a read.

@Martin Vehlow No, my question is why do more people lean more towards buying SFRs and renting/leasing them out rather than buying apartment units and renting/leasing them out? I hear a lot about buying a house and leasing/renting it to a tenant, but i don't hear a lot of people doing the same with apartment units. I'm curious as to why.

I haven't heard much about renting out individual apartment units, so I was just wondering the reason behind that. What is the reason no one talks about renting out single apartment units as much as they do SFR or multi units?

@Harjeet Bhatti Well not in terms of refinancing, but just taking out a first mortgage on a home in the name of an LLC. I'm still fighting with my credit union for a solid answer, but they have yet to mention anything about due on sale.

@Todd Rasmussen Ok, understood. I didn't take into account that in order to make money with this idea, I would have to be making more than what I'm giving back at the end of the year. It makes much more sense to loan rather than borrow in this scenario. I appreciate the help.

@Brant Richardson The only goal is to try to increase monthly cash flow, so to make 600 a month instead of 500. Not sure if this is the best way to do so.

I got this idea in my head, but I want to know if this is not only possible, but legal. So I was thinking of increasing my cash flow by allowing family/close associates to pay a portion of my mortgage, and in return give them 5%-10% more than that portion at the end of the year. Here's a very simple and exaggerated example:

I get 1000 in rent/month, but the mortgage on the house is 500/month. Instead of me paying the whole 500, I will allow someone to pay 20% of that, so 100, every month and give them 10% back at the end of the year.In total, they would have paid 1200 and I would have only paid 400 in mortgage every month, which means 4800 total instead of 6000. I would then give that person 10% more than what they paid, so 1320, which means I have to subtract it from my yearly cash flow of 7200, giving me only 5880. At first glance, this seems like I am losing money considering I could pay my full mortgage alone and pocket 6000 for the year rather that lose 120 dollars. But could this be considered a way to leverage debt? Technically, wouldn't I only be paying 120 dollars a year for a 1200 'loan'?. This may be a dumb question, but I had to ask anyway.

Hi again. I recently read that banks don't allow entities to take out a mortgage loan, specifically LLCs. Apparently, there is a 'loophole' that allows the title to be transferred from the buyers name to the LLC, but it may present a 'Due on Sale' clause. Is anyone familiar with the likeliness of this happening in Nevada. In other words, will the transfer ALWAYS attract a 'Due on Sale' clause?

@Timothy Maloney It helps a little since you provided a real life scenario of HML, thanks. Maybe I just need to do it before I fully understand it.

I've just been introduced to financing through a mortgage loan, refinancing, and hard money lending. To my knowledge, the general approach is to get a hard money loan on a fixer upper, then refinance that property through a bank to pay off the hard money loan.. Is this correct? I've been hearing refinancing gives you your money back but I can't seem to understand how, considering you are paying not only points, but interest on that OG hard money loan.