All Forum Posts by: Matthew Morrow

Most contracts can have the verbiage "or assignable llc" in the buyer info, but you still must conform to contractual deadlines. We substitute LLCs frequently during the buy phase, but all parties must approve and the LLC must be up and running prior to the deal going thru. Considerations for this are Title- Mortgage- and other entities which will require your LLC docs to be current before going too far.

Chris,

Smart move considering an LLC for your investments; it offers both asset protection and potential tax benefits. Here's the skinny:

1. Set Up the LLC: You can do this through online platforms or hire an attorney. Ensure it's correctly formed in the state where the property is located.
2. Open a Bank Account: Once you have your LLC, open a bank account in its name. This keeps personal and business transactions separate.
3. Securing Funding: Many lenders are open to lending to LLCs, though terms might be different compared to personal loans. Ensure your LLC has a strong financial position. Some investors start with a personal loan and then transfer the property into an LLC, but be wary of "due on sale" clauses.
4. Purchase Property: Always use the LLC's name on all contracts, offers, and documents. This ensures the asset is under the LLC from the outset.

Networking with seasoned investors and joining local investment groups can provide you with deeper insights and best practices.

Good Luck!

Matt

Hey there,

Welcome to the world of real estate investing! First off, it's not uncommon to sift through many properties before finding one that meets your cash flow criteria, especially in a market influenced by fluctuating interest rates. Patience and diligence are key.

For securing funding, both conventional banks and private lenders have their pros and cons. Banks typically offer better rates but can be more stringent in their underwriting. Private lenders, on the other hand, may be more flexible but often come at a higher cost. It truly depends on your personal situation and the deal at hand.

Setting up an LLC is relatively straightforward; you can either hire a lawyer to walk you through it or use online platforms / state dept direct websites. The benefits are in asset protection and potential tax advantages. Once established, setting up a bank account for your LLC is a simple process, and any reputable bank will guide you through it.

It's a learning curve, but the experience you gain is invaluable. If you're genuinely interested, I recommend seeking out a local real estate mentor or joining an investment group. These communities can be a goldmine of knowledge and resources. My team in PA helps investors from across the country build and scale by finding remote deals to consider. If you have any questions or want to chat id be glad to help.

Best of luck,

Matt

Very slippery slope. Id contact your attorney with this one. Disclosure and known defects area difficult area to show proof

@Frankie Renaldi, Allentown City? Were seeing this happen lately here with gentrified properties prepping for sale. The inspectors have taken every opportunity to rectify old permits. We've held up closing for the permits to be satisfied prior to settlement, or asked sellers to compensate buyer X for a licensed plumber / electrician etc to do the work within so many days. Most times the city is amenable to this. You could also explicitly state conditions in the ASR, but likely wont be a good as a indemnification clause you mentioned. Would love to learn more if you find something specific. 

I second Abel. Simple sweet and to the point. Dealmachine is what we use, so not quite newsletter tech, but they work great for finding off market deals. we average 1 closed deal/ 3000 sent. Highly filtered and targeted to our client base. Good luck

We have a colleague who assumed an extremely unfortunate situation lately and are looking for guidance. I have calls out to several attorneys, but it’s the weekend, and just looking for some general information prior to their return calls.

Single-family residence. owner, who is recently deceased is a naturalized citizen, who owns the property with a Mortgage. They have no heirs in the country, but family in the Philippines. Her and her teenage daughter both unfortunately passed suddenly. There was no Will or directives in place  

Our contact is the ex-husband of the Owner, the teenage child was his.  He has been tasked with handling the funerals for both parties, but has no legal ties to the real estate. some government some government

Will this go into some government cycle of perpetual probate where no one can actually petition for the parties? Or will the mortgage company take over. he has no money to pay for the funerals, and was wondering if there’s any way to use the house to do so.  Family in the Philippines unfortunately wants nothing to do with the process. 
  

Any information will be greatly appreciated
thank you 🙏🏻

Multi member LLCs are essentially partnerships. We have many of these and its common for the members within the Entity needing to personally qualify and backup the financing even though the LLC will retain ownership. Local banks make this pretty easy. But i would assume that you'll need to have your personal finances assess (every member) for each deal. Unless you have a C-corp or other entity style that generates credit for itself over time.