All Forum Posts by: Keith W.

Yes, that's the way I understand it too. Wish Mr Brandon Turner could chime in because it was his video about not needing an LLC got me confused.

The other issue is I understand that Banks do not lend to LLCs and transferring to one could trigger a full payment due clause. 

How is that handled?

Thanks for the info. The situation is a cesspool, not a septic. In the state of Rhode Island, cesspools were outlawed so whenever a property is sold, a septic must be installed or tie into City sewer if available. 

After further research, it appears that city sewer is not available therefore, the cesspool must be removed and septic installed. Now we’re talking about a 20k job. Not sure if I want to deal with that. 

Ok thank you!

Any ballpark figures on the cost to convert a cesspool to public sewer?

I imagine the costs and rules will differ depending on location but, is it $5k project, $20k, $50k? 

Would you buy a home with a cesspool?

Awesome. Thanks for that!

@Brian Mollo

Thanks a lot for the information. I think my game plan would be to set up my business as an LLC for the separate entity piece, joint ventures and business credit.

My investment strategy is fix and hold so I wouldn't need the LLC for the hard money. Btw, why do HML want to lend to LLCs?

If I come across a good fix and flip deal then I may have to form a separate LLC for that property to satisfy the HML.

As you stated, I should run this by my local professionals  

The more I research the concept of forming an LLC, the more confused I get.

For the gist of my understanding, proper insurance should cover you for liabilities. But on the other hand, an LLC formed on a specific property limits your liability to only that property. In other words, without the LLC, and you own multiple properties, then they come into play for the lawyers to go after. I think this is my biggest concern with not having each property covered by its own LLC. Please opine.

My other concern is whether I should set up my business as a whole in an LLC. My thinking is that I will set up the business as its own entity establishing business credit.

If I were to go into a joint venture or short-term partnership, should I go in as an LLC?

Ok. Thanks for the update. It’s just good to know that it could be an option if needed when trying to acquire distressed property. 

We would like to market it as a solution to help the homeowner keep a foreclosure off their record, while getting out from under the debt. At the same time, we could acquire the property without actually leveraging a large amount of cash; just what’s needed for adding value. 

Of course all of the numbers need to make sense as well. 

These are things we used to find out the hard way before the information highway! 

@Kevin Zimmer Thank God for the internet! “Subject to” is yet another term I never heard. I just googled it and found that it means taking control of the title but the loan stays in the name of the seller. I’d this what you’re referring too? 

How would that affect my end- game which is to add value to the property, then cash out refinance into a new mortgage under my own name? 

Thanks. I’ll check it out.