All Forum Posts by: Levi T.

@Jove K. LLC's don't have GP and LP members, all members are GP. You need a LLP if you want to remove those investors from the GP group, and thus the loan guarantee. Also as @Taylor L. pointed out, you will be within the SEC ruling as a security, thus you need to register under regulation 506 (b) or (c). The legal paperwork is steep in cost, and requirements. That said, smaller friends and family deals to fly under the raider of the SEC all the time, but be warned, you screw it up and ANYONE complains to the SEC, we will be reading about you in the evening news.

Hi Cardell. Yes our investment firm is in MD, and a handful of other states across the nation. We do upwards of 10 million in deals per year with our capital investors, and we have entire teams with call centers, including our own management company that handles everything. I don’t live on the east coast anymore, moved to AZ ✌️

Thank you @Marlen Weber, is there older townhouses, like 1940-1980 construction?

I can’t quite find what I’m looking for. Everything I keep seeing online is new, high end, or is an apartment or condo format. 

Maybe it’s just an east coast thing, but this is what I’m trying to find:

I am looking for recommendations on rental neighborhoods that are class B or less, that are good for cash for home type purchases on townhouses. 

I’m trying to get the lay of the land on where to look for deals. For example I see a lot of townhouses sold in the Bellaire region outside of Houston, or out near Missouri City, but I don’t see much near Ft Worth, is that because apartments are more popular?

As you have likely heard, Virginia now requires all landlord not to discriminate based on source of funds, as of this month. Example is section-8, and what I assume includes money from non-profits. I find this to be an interesting topic, because the law say "source of funds", but it did not say we are required to lose any our of land rights, or modify the lease agreements to accept these funds. 

My PMs have been asking me how to handle things, as a lot of nonprofits have been popping up offering to pay tenant rents, but they are inserting their own terms, such as forgive 3 months worth of rents, to receiver 1 or 2 months payments. 

Also my PMs are having new tenant applications with source of income from other organizations, that want modified terms to provide the tenant the funds for rent. My current stance is we accept any application that meets credit, criminal, and income qualifications, with no concern on how the money is being paid, but we wont modify our lease terms for said funds.

So I wanted to see what everyone else is doing?

@Obi I. This still a thing?

The CPA firm I use in Virginia, put out this for their clients a few days ago: https://www.pbmares.com/forgiv...

The SBA is doing up to 2 million at 3.75% for 30 year fix loans to businesses affected by COVID19, under the Economic Injury Disaster Loan Program. That made me think, it could be a good option in terms of clearing some higher rate loans with 5 arms, into 30 year fix. What are you thoughts about this, or your experiences with filing EID Loans yourself vs someone else filing it for you?

The banks will just apply 100% of the 200k from the sell of the one property, against the loan till the loan is paid in full.

I’ve seen a lot of people make that mistake. One of my biggest local competitors did that with 400 properties. They had expensive hobbies, and would sell a unit to round up their cash needs sometimes. They consolidated their loans on all 400 units into a single loan. They went to sell some, and 100% of the money went right back to the bank to pay down the loan. They are no longer my competitors.

That said, consolidating your loan if your buying on the regular is a good idea.

It is a complicated question, compassion vs livelihood. My people will follow SOP, and evict accordingly. I assume a small percentage will make it to my desk to review, but for the most part, I would have to draw the line if cashflow for basic operation expenses started to come into question. It can quickly turn into a portfolio destabilization event, and once that happens... You know how that went from 08 event.

For now the COVID-19 is not at a death rate that is any level of concern, however if this S-type prediction is true, we are going to have real problems.. For now, I expect maybe 1-3 renters per 100 to be affected by this.