All Forum Posts by: Lateefah Mathews

Hi @Tom McGee welcome to BP! So transferring properties with existing mortgages into an LLC without selling them to the LLC is a common strategy for most real estate investors seeking to protect personal assets and possibly enjoy certain tax benefits. As you've probably read here, however, you will need to check the terms of your mortgage agreement for a "due on sale" clause. This clause allows the lender to demand full repayment of the loan if the property is transferred. Most loans have this clause it may not state these words exactly but it's generally there.

 It's wise to then, seek consent to transfer from your mortgage lender. Some lenders may be willing to modify the loan terms to allow the transfer without invoking the due on sale clause, especially if it does not affect the loan's security or your ability to repay the loan. Simply let them know you want to transfer ownership but not payment. 

If you get the OK, you'll want to form the LLC and create your operating agreement, then proceed with transferring the title of your property to the LLC. This is generally done through, a quitclaim deed or warranty deed, filed at your local county recorder's office. Then you'll need to notify your insurance provider about the change in ownership and have the policy updated accordingly. You can use a title company to transfer the ownership. Hope this is helpful!

Hey, @Eric Kajka Welcome to the BP Family, and congrats on your first "Live and Flip"! Much success with your future investing endeavors! 

Hi @Shelby Van Horn I'd be thrilled to assist you with your first fix and flip! My family roots are in Newnan and LaGrange, and I specialize in navigating novice investors through their first deals. Feel free to DM me to connect!

Welcome to BP @Janani Rangaraj! Are you planning to finance your purchase, or are you buying with all cash? Your financing method is important, as interest rates will significantly impact your cash flow. 

With a budget of $300k - $350k, you might find opportunities more aligned with MTRs or STRs. Given the current market, starting with MTR or STR for the first year or two until the interest rates become more favorable for long-term strategies. But if you insist on LTR, I recommend considering areas like Marietta, Decatur, or Acworth which have a pretty high LTR rental demand right now.

Hey @Nestor Hernandez Welcome to BP! Good luck on your investment journey!

Hi @Mathias Garrison I'd be more than happy to recommend a few contractors. Feel free to DM me for the information! 

@Xin-Ran Jiang  Hey! So, one way to gauge how much you can spend is the amount of cash you have on hand. For instance, if you've determined that your max down payment ranges from 3.5% to 4%, ask yourself: do you have the 4% for the down payment plus an additional 3-4% for closing costs (Yes, be prepared to pay the closing cost for the acquisition of your properties) on a $1.3M property, at your disposal?

If the answer's a no, then keep dialing back the price until you hit that sweet spot - ie. the amount you are comfortably able to afford. After that, schedule conversations with several lenders, coming to the table already knowing your price ceiling.

Hi @Joy Christina, I am working with a few buyers seeking Quads and Tri's. I would be happy to present your property to them. Feel free to DM the information if it is still available. TY! 

Hey @Josh S.

If I'm not mistaken did you imply you were Pre-qualified for 1M, FHA? If that's the case I'm with @Nicholas L. The most ideal way for you to utilize this funding and probably the safest way, would be to House Hack. If you are willing to move to any other state then you probably will have to get qualified in that state however with FHA you have to occupy the home for at least 1 year even if you're using it for a multi-fam (which I recommend). That's enough time to get your feet wet as an investor then invest elsewhere if need be...But I'm with House Hack all day even if it's Cali!

@Nicholas L.

Hi @Paul Pratt I ran into a similar situation previously and I don't know a specific company but you can start by researching the following. It would be helpful if your client already has their plan for property remediation lined up. 

For your fixer needing conditional coverage post-close:

1. Specialty Insurers: High-risk flexibility.
2. Surplus Line Insurers: Non-standard risks.
3. FAIR Plans: State-mandated option(last resort)