All Forum Posts by: Lucas K.

I would also recommend speaking to other people who have used this turnkey provider/property manager before (you might find some here: https://www.biggerpockets.com/forums/92/topics/80345-dan-reedy-of-moore-kc1).   This property has been on the market for a pretty long time and, if I remember right from looking into it previously on the Jackson County GIS, it is owned out of Australia.  If those owners used the same turnkey provider/property manager, it may not have worked out so well for them.  I'm not saying it's a bad deal, it might be a great one, but you should definitely do a lot of due diligence before going forward. 

Hello Experts,

I am hoping someone can help me with a lending conundrum I have run into.  I currently have a four-plex under contract but have run into a snag with the financing.  It is a single tax ID/legal description, but there are two structures: an old 1900 era house converted into a triplex and a small house (kind of like a carriage house, although it wasn't a carriage house) facing the side street behind it, for the fourth unit.  The small house has a different postal address because it faces the side street.

My lender is saying that the underwriter is telling them the loan will not meet Fannie requirements unless they all have the same street address (so we currently have A, B, and C for the big house, I guess they want the little one to be D).  

Has anyone run into a similar problem in the past, and have you figured out how to get over this hurdle?  I frequently see properties with multiple structures like two duplexes that have different addresses so I was surprised when this became an issue.  I was expecting the issue come around when the appraiser can't find three large houses with carriage houses in the area that have sold recently (which they won't be able to do).  But we haven't even gotten to that stage yet!

I would be grateful for any and all advice.  Property is in Kansas City, Missouri if anyone has worked through this problem with a lender there in the past.

Lucas

For what it's worth, an average of 200-400 gallons per day for a 6 unit looks pretty good based on the average U.S. water usage of 80-100 gallons per day per person.

http://water.usgs.gov/edu/qa-home-percapita.html

Thanks, Terry, I will check with the closing company.  I called the county recorder and they said it was ok, but I haven't talked to the title company.  I am pretty sure that Missouri doesn't have statutory land trusts so I was going to go with a grantor trust.  I will do some more digging.  Did they tell you why they didn't think it would work?

Hello Everyone,

Long time lurker here...

I am under contract on a four-plex in Kansas City with a friend, mortgage in my name. I plan on putting title into a grantor trust with myself as the beneficiary and then transferring my beneficiary interest to a Missouri LLC my friend and I created. Does anyone on the forum have experience with the appropriate insurance scheme in a grantor trust or land trust scenario? My preferred insurer (I have two SFRs on my own that are in my name) is balking and wanting to just put the trust as the primary insured and my friend and I as additional without the LLC. I don't know enough about insurance to figure this out on my own or even respond to him and am hoping someone with more expertise on here can help me out.

Thank you all for any replies and, if you don't reply here, thank you for all of the posts you have probably put up elsewhere that have been a huge help in my small time real estate endeavors.

Lucas