All Forum Posts by: Matthew B.

1) Do you use your home address as your business address? (on your website, etc.)

2) If so, have you ever had a bad experience because of it?

None of the serious investors I know still pay 6% commission to a traditional agent. They all either have their licenses or list with a flat fee MLS company.

1) You do still have to offer the buyer's agent a commission. This is going to be whatever is customary in your area. Find out what the majority of other listings are offering and do that. In my area, the most common is 3%, although some people do 2.5%. The flat fee MLS company will ask at the time of listing what commission you want to offer.

2) Most listing agents just put the property on the MLS and wait for a buyer's agent to sell the place. You just need the property listed on the local MLS and all phone calls and emails directed to you. Some companies will nickel and dime you for additional photos, length of listing, yard signs, lockboxes, etc. Just find a reputable company who has actual MLS access (not one of the national middlemen companies), make sure they let you upload at least 20-25 photos, list for at least 6 months (3 month listings are a joke), and make sure they have access to the correct local MLS. Sometimes there are more than one MLS that cover a particular area and your property needs to be on the correct one or both. You don't need a yard sign these days, everyone is looking at their phones. Buy a lockbox at Lowes or Home Depot.

3) You can stipulate cash or conventional financing only on the MLS listing. Should be fine for conventional since it's only cosmetic.

4) There are a lot of flat fee MLS companies that suck. Find one that doesn't. Make sure the broker is local to your area and you're not dealing with a national referral company (i.e. they say they can list on every MLS in every state). You should be able to cancel a flat fee MLS listing at any time, the fee paid upfront is just not refundable.

I'm a flat fee broker in Florida. I obviously can't list anything for you, but I can help you with questions if you have any. Good luck!

 I heard of Lima One, but I did some research and I saw a lot of negative feedback. People paying all kinds of money and then being told at the last minute they can't close. Stuff like that.

Apparently, the magical portfolio lender mentioned in all of the BRRRR success stories is nowhere to be found in my area. I can't even find a portfolio lender willing to lend on rental properties owned by a person, let alone an LLC.

The way I see it, myself and other investors like me have two options.

Option A: Pay huge origination fees and high interest rates to a company like Visio Lending who caters to investors and knows they have limited options.

Option B: Transfer properties from LLC to my personal name and get 10 Fannie/Freddie loans at the best rates, then figure it out from there. Loans 11+ are still easier when in a personal name.

Regarding Option B, I heard that a lot of people transfer the property to their personal names for the purposes of getting the Fannie/Freddie loan and then transfer the property right back to the LLC. Forgetting about the due on sale clause, doesn't this render the LLC worthless since you've effectively commingled assets and proved to a judge that the LLC is just a shell? It seems to me like you might as well just keep the properties out of the LLC, get some insurance, and call it a day.

Thoughts?

Could it be that lenders in my area are overly sensitive and reluctant to do these types of loans since it was one of the hardest hit during the recession? Are folks in Arizona and Las Vegas having the same problems? @Account Closed

True - I've never seen a BRRRR success story from my area. But, there has to be a way... I've been hoping things will change since 2013.

By the way, I got another rejection today from yet another local portfolio lender. I was told they have not done cash-out refi's on investment properties since before the recession. Today, they will consider it but only if the cash pulled out is used to improve the property.

They'll lend me money to buy a boat, an RV, a vacation home, etc. but not for a cash flowing rental property.

I'm also checking into some of the investor specific lenders like Visio Lending. The origination fees are high ($3,500) and the rates are much higher, but at least they're willing to work with me.

I've also received some recommendations for mortgage brokers in my area who are "investor friendly". I believe they are only going to be able to offer Fannie/Freddie loans, but I'm checking into it nonetheless.

 You would think it wouldn't be that hard, but apparently, it is in my area. Do you happen to lend on properties in Florida?

Funny you should mention this... I thought the same thing. However, I was told that I would need to show where the funds originally came from to purchase the property and prove that they did not originate from me. Or something to that effect. I guess people had tried quit-claiming property to an LLC and then purchasing it back to get around the seasoning period.

Yes, that's also an issue. Even though we've owned the properties for years in the LLC, we'll have to wait at least 6 months after transferring the ownership to us personally to comply with gov't regs. Could be longer if the lender has their own overlays. The whole thing is absurd and absolutely infuriating.