All Forum Posts by: Lynn Dee Murrow

Unfortunately, the Bank does have the right to control the money since they have such a large investment in the property. Since it is a small regional bank, I would try talking with the branch manager about how to get the work started when they are holding the money and even ask if they have a preferred post flood contractor they prefer you work with since they seem to want to be involved. Part of the purpose of asking that is to prove your point. Contractors will want money up front to get work started so press the bank for their system to work directly with the contractors to repair the property since they insist on keeping the money. You have a greater chance of getting some leaway with a small regional bank than with a larger institutional bank.

Good luck! I am glad you were insured! 

When you say online, what exactly are you looking for? You can work with anyone these days without having to physically meet with them. I use a Broker who shops my policies around every year. Past several years I have ended up with Travelers. I think Veterans should check out USAA to compare pricing as well. You can look under the network tab then click on companies and find a variety of insurance companies that work with investors. Some may want you to call so they can ask questions and find the best product, but I bet several have online portals where you can enter everything and get a quote without talking to anyone.

Usually financing for flips will come from private lenders, sometimes called Hard Money Lenders. They lend based on the asset, and sometimes on the borrower if they do not know you and you do not have an established record.

If the lenders you plan to use check your credit it will affect your credit score to have multiple inquiries throughout the year. 

Where are you finding your lenders? You should be able to get preliminary information based on your self reported credit score etc. Are you using lenders who specialize in serving investors? Look here on Bigger Pockets for their list of Hard Money Lenders in California...

Hope this helps!

They will pay taxes on any gains after they inherit, but when they inherit the basis is stepped up to current market value so all the gains up until that point are inherited without tax. 

Now is a good time, however, to point out I am not a CPA, Enrolled agent, attorney etc. Perhaps this conversation will attract one. If not I will see if I can find one to chime in.

There could be other specific circumstances that cause a taxable event, but in general this is the strategy and I have seen it work well.  My CPA refers to it as deferring taxes beyond the grave.

Food for thought, and more research depending on individual circumstances and investment strategy and needs.

Have a great week!

I think it is always better to be an independent owner. If you have to partner with others to get started then you should, but I think the goal should be to own your own properties as soon as possible. There are probably others who feel differently....so you will get a lot of different viewpoints as food for thought!

Welcome @Jeffery S Robinson! Great story! I would like to disagree with one thing you said here though. You didn't just "find yourself" in a 20 unit apartment building. It sounds like you had an idea of what you wanted to do and even though you seem to have been frustrated at times, when you saw an opportunity to interact with successful people and learn from them, and then to invest, you took action! Sounds to me like you are off to a great start, and you will meet A LOT of new and interesting people in this business right here in Bigger Pockets!

I am the EVP of Lifestyles Unlimited. I answer other questions, not Lifestyles Unlimited related when I can because I like this community. There is a lot going on here but I just wanted to contribute a couple things. 

The first is that the people answering here are not Lifestyles robots, or employees. They are members sharing their personal experiences just like everyone else. I believe they are trying to help, and I see many Lifestyles Unlimited members here sharing information and ideas. Lifestyles Unlimited employees will always disclose their connection with the company.

No one has properly addressed the 1031 exchange and "Tax Free" income. It is more properly called " Tax Deferred" Income. The core Lifestyles Unlimited model is to be an Independent Rental Owner of Apartment Communities. As you increase the value you sell and move up to more or larger properties until you have the income streams you desire. Then, you teach your heirs all aspect of real estate investing including successful operations. When you die, your heirs inherit the property at a stepped up tax basis capturing the equity tax free. That is a very simplistic summary, but this is the method discussed in our seminar. We are not saying flipping gains are tax free, gains from the sale without a 1031 is tax free or investments in syndications are tax free.

I hope this helps with clarity on Lifestyles Unlimited. Thanks for listening, and for contributing to the Bigger Pockets community!

@Matthew Rembish Keep in mind that he is not representing you in this deal, he is representing himself. The title company attorney represents the title company and you will sign a document specifically acknowledging that they did NOT represent you and your interests in the deal. Your loan will be in 2nd position to the mortgage, increasing your risk. Finally, just because someone is a Realtor does not mean they understand investing and rehabbing. Make sure you vet him as an investor. I am not saying to not do the deal, just pointing out your risks. You need formal loan documents and a title attorney will typically not be the one to draw those up and standard fill in forms are not sufficient protection for you in this deal.

Hope this helps,

No, you do not need any licensing. What you do need is education in securities laws and enough experience to attract investors. You will need an SEC attorney to draw up documents and an experienced team of vendors. Being a steward of other people's investment dollars is a serious commitment. The consequences of errors and mistakes can be extensive so I encourage you to create an education plan and complete it before syndicating your first deal.

Hope this helps,

Lynn Dee Murrow
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If you start attending local investor groups you will find lenders who do delayed financing and will be reliable. Make sure you have this plan in place up front because there are time restrictions. Usually you will buy cash and must complete your delayed financing within 6 months of purchase.