All Forum Posts by: Ko Kashiwagi

Best to involve attorneys/lawyers as well, but it depends on the type of financing you get.  Typically financing for investment properties are difficult if it's irrevocable. If it's revocable, then there should be options but it's important to let them know up front so there's no surprises. If it's formed right, typically all that's required is a certificate of trust and a few more documents to show the chain of ownership and grantee/grantor.

Will this be a rental?

Hi Anthony,

Definitely CPA/lawyer would be great place to start. As a lender/broker I can offer a perspective on the financing side as it would be important especially if you are going to use financing. Most lenders are not able to do irrevocable trusts and some can't do complicated structures like Series LLC, LPs, etc. If you are going in cash it's not a concern but limiting your option for the purchase financing or refinance option down the line will cause headaches.

Hi Francisco,

What would the other person (doing less labor to repair) be doing? Will they be doing other types of work like getting through the financing, becoming the guarantor, finding the deals, crunching the numbers, doing the accounting, or are they just simply doing less work?

From what I've seen, typically two people doing a flip like this have different skillset so one person is doing different things than the other. The equity split is totally different among each LLCs, but typically it's the easiest to split the responsibilities in 50/50. For example one person does most of the rehab work/management and the other person finds deals, works through the paper work, and sells the flip. Ultimately it boils down to how much value one is bringing in my opinion

You have a lot of equity and the assets you have seem to me in great locations. You could roll it into a higher cash flow deal, but it would be really important to do a lot of homework before jumping in. You can also get into more active strategies like STR and rehabs, but the work required to get in this is significant and at that point you might be able to just get a new role with the same pay with the equivalent effort.

Is your entire industry in a hiring freeze or just your company laying off? Embarking on a new strategy in real estate can be lucrative, but it would be up to your risk tolerance.

It wouldn't hurt to get a revision on the appraisal! If the revision doesn't go through but you are confident about comps, it may make sense to get a new appraisal with a different program!

As long as you have have enough equity in the deal (20-25%) you could do a rate & term refinance and payoff the seller financed mortgage to get a new loan. Conventional financing would be difficult as they typically require 12 months seasoning to use the newly appraised value. So you would likely need to go business purpose like private money or DSCR financing.

BiggerPockets is great and I've also found meetups to be great help when networking!

Hi Dave,

HELOCs on rentals can have high rates but it may make sense if your first position is low enough. It would be important to calculate the blended rate and calculate the cost. If there's enough margins on your BRRRR, this can be a great strategy.

Rates are typically lower and less risk due to reduced leverage.

As others have noted DSCR would probably suit well. Make sure to check reviews as I've heard of a couple of bad scenarios recently.