All Forum Posts by: Michael Thorne
Michael Thorne has started 15 posts and replied 54 times.
Post: New LLC What is better in Texas a Protected LLC or Registered LLC
- Arlington, TX
- Posts 54
- Votes 11
“BP” Community…
Post: New LLC What is better in Texas a Protected LLC or Registered LLC
- Arlington, TX
- Posts 54
- Votes 11
Hello PP community –
In June 2022, Texas allowed for two different types of series LLCs. One is Registered which you register the LLC with the State for $300 and it is easily provable as a separate entity due to the Secretary of State certificate. The other is a Protected LLC, which does not require the registration but may cause other businesses (banks, title companies) to wonder whether or not a particular series had been properly formed, or even whether or not it legally existed at all.
Since this is relatively new, are there any experienced investors who have explored the differences in these Series?
At this point, I am relatively small investor with only a few properties, and it seems the likelihood of getting a loan for the LLC and not personally would be low. Therefore, a Registered LLC may not be necessary. I would welcome any thoughts you might have.
Post: [Calc Review] Help me analyze this deal
- Arlington, TX
- Posts 54
- Votes 11
*This link comes directly from our calculators, based on information input by the member who posted.
Please poke holes!! trying to get in some reps on analysis.
Additional info: small town west of Waco. Do not see much appreciation at all, limited ability to increase rents. This would be top of market rent after rehab. I am right to be OK with a breakeven on the 50% rule? This will likely always be self managed, but accounted for 10% management fee.
Post: Would you do this deal?
- Arlington, TX
- Posts 54
- Votes 11
*This link comes directly from our calculators, based on information input by the member who posted.
Please poke holes!! trying to get in some reps on analysis.
Additional info: small town west of Waco. Do not see much appreciation at all, limited ability to increase rents. This would be top of market rent after rehab. I am right to be OK with a breakeven on the 50% rule? This will likely always be self managed, but accounted for 10% management fee.
Post: Loan for multiple SFD rentals in rural community
- Arlington, TX
- Posts 54
- Votes 11
Quote from @Jay Hurst:
@Michael Thorne Yes, we have financed the portfolio of properties for investors with our balance sheet short term loan giving credit for the current value. For example, in your case assuming 6 properties were worth 450k but you were able to buy them for360k that difference might be most if not all the down payment required. In other words, very little or no cash might be required. We then turn around and immediately refi the properties individually to a fixed rate loan using the same appraisal on a rate/term loan which means you can use the current value right away. So, long story short, you buy the properties AND get into a 30 year fixed loan with no where near the usual required cash outlay. of course making your cash on cash returns pretty damn nice.
All of this of course depends on a number of factors including tight appraisal's which can be tougher in rural areas but an example of what we have done in the past a number of times.
Hi Jay -
Thanks for the info - this I would like to give you a shout directly to discuss if I could. I'll DM you. thanks!
MT
Post: Loan for multiple SFD rentals in rural community
- Arlington, TX
- Posts 54
- Votes 11
Quote from @Chris Davidson:
Quote from @Michael Thorne:
Quote from @Jay Hurst:
@Michael Thorne Just curious, are you going to be able to pick these properties up at a discount by buying in a package?
Years back when starting this is how I really ramped up my investments. A few pitfalls I wish I would of thought of during the process was at the time it more than doubled my tenants, which in turn tripled my headaches. Get notice to the tenants before close of the sale so it is a smoother transition. If a PM is in place and they are being difficult get the owner to perform and let them know the PM will blow up the deal. Having accurate tenant info both leases, and current contact info is huge. You should be able to get a good deal, but as some say no one sells a property that is perfect. You are taking on their problems just find out what those problems are before hand, and have a plan to deal with them. Get proof of payments beyond the rent roll.
Also if you get some maintenance items that need to be taken care of in the units and plan to get those resolved quickly it brings a lot of good will and eases the transition.
Keep crushing it!
This is great advice & info - thank you! I'll post an outcome here.
Post: Loan for multiple SFD rentals in rural community
- Arlington, TX
- Posts 54
- Votes 11
Quote from @Jay Hurst:
@Michael Thorne Just curious, are you going to be able to pick these properties up at a discount by buying in a package?
Post: Loan for multiple SFD rentals in rural community
- Arlington, TX
- Posts 54
- Votes 11
I am looking at an opportunity to purchase 6 small houses in a small community in northwest area of central Texas. They are relatively inexpensive from 40k - 80k. Would a portfolio loan be used to bundle these properties together and buy them as a package? What experience can you share or guidance on a way to finance all properties together? Any recommendations on a lender to talk to?
Post: Hard Money Lender Rural Texas
- Arlington, TX
- Posts 54
- Votes 11
Quote from @Danny Webber:
Try Kelly Smith at Easy Street Capital
Post: Hard Money Lender Rural Texas
- Arlington, TX
- Posts 54
- Votes 11
Quote from @Issac San Miguel:
Hi Michael!
How rural is rural? I could look at them for you if interested - we are a HML out of Austin.
Hi @Issac San Miguel thanks for the reply. It’s in the town of Hamilton.