All Forum Posts by: Kwanza P.

Use an experienced attorney.  Everything is rosey until...it's not...

 Thanks Lauren! In those cases, were you reimbursed for the damages ? If so, by who? And did you have to close down your rental to make any repairs ? Also, what kind of vacuum do you use to get out pet hairs ?

I allow dogs only. 2, or if the guest asks beforehand I’ll allow 3. I am a cat person, but don’t allow cats because they are creatures of habit. They get nervous in strange surroundings and may scratch furniture or pee somewhere because they’re stressed. 
I charge a $150 pet fee total, of which $30 goes to my cleaner for the extra work of dog hair.  No restrictions on dog size. 
Allowing dogs had definitely helped bookings, about 1/3 of my guests bring them.
But In the last 2 years I have had damage. A toilet paper holder broken off the wall, blinds and door frame chewed on, area rug in the living room peed on in 2 places and the hardwood floor underneath needed a lot of work to get the smell out. 

I’m sorry, but this is extremely irresponsible and uninformed advice. If the use of the money is for personal, family, or household use, @Kwanza P., then the loan is for a consumer purpose and must be originated accordingly.

Even though you ultimately intend to sell, the fact that you will be using the loan proceeds for your residence means your loan will be for a consumer purpose. It must therefore comply with TILA, RESPA, the SAFE Act, Dodd-Frank, and all associated rules and disclosures (for which business purpose loans are generally exempt).

You cannot “stay under the radar of owner-occupied classification” by “moving in after the rehab begins or keeping it under 12 months.” If this home is in California, as you are, Kwanza, it must be originated by a licensed California real estate broker or CFL. It has always been prohibited, but beginning this year in California, brokers or CFLs who attempt to "stay under the radar," as Kyle recommends, now face jail time for making such loans.

“Structuring as a short-term bridge loan” or using “private capital or asset-based lenders that focus more on the deal than the borrower’s living situation” change none of this.

You can find a list of knowledgeable, licensed private lenders who make consumer-purpose loans by searching the member directory at the California Mortgage Association. (Full disclosure: We are members, but we do not make such loans.)

Will this property to so structurally damaged that you could not get a normal loan on it? I am currently doing a live in flip we got it under market value, normal loan and remodeled it within 6 weeks then moved in (with permits). 

Is the property something that will need an engineer/architect to draft drawings to get plans then permits? This will take a lot longer and the traditional lender will not allow for extended time outside the home so there might be some other options. Conventional Rehab loan (this takes some time to get the financing for on it) and FHA 203K loan. These loans provide rehab costs built into the loans to get the work done, the challenge though with these are the higher interest rates and red tape that is involved with them. You can get someone to help you with this process to make it faster and easier, but not sure if you are looking for something like that type of loan.

The other option would be the hard money route, but I would explore all options and it really is dependent on what condition the house is when you buy it and how much work is really needing done. 

As a single member llc, you are taxed as if you owned it personally. No difference. Most of the answers here anout liability aren't helpful if you only own one or two properties. Consult counsel where the property is located. Have all your insurance with same carrier and get a $2-$4 mil umbrella. 

Thanks Dan ! $2 to 4 million for any property? Any location ?