All Forum Posts by: Nikki Closser

@Todd Rasmussen this is so helpful, thank you so much. I was hoping to hear from someone else who researched this method for avoiding season periods. Appreciate it!

I’m in Michigan and it is not a community property state.  

Is there a strategy or good reason to only put our LLC in one of our names versus both of our names? I already have my own business unrelated to photography, so I already have an LLC without my husband as part of it. Just curious if there would be any reason why one of us should keep our name off of our real estate LLC when it comes to investing purposes. Thanks for any insight on this!

@Andrew Postell yes, this helps a ton! I'll create a new LLC. Thank you!

@Andrew, what if my LLC is taxed as an S-Corp? Does that matter or am I still "borrowing" from my LLC? Thank you!!

@Andrew Postell

This is an absolutely incredible thread! THANK YOU for your patience and time spent here answering questions. I see that you are a lender in TX -- totally wish you were in my state!

If you don't mind, I have a few more questions to add. I'm definitely a newbie, so please bear with me :)

My questions have to do with the actual steps you list in section 3:

• 1. You create an LLC - all set
• 2. You buy a home - Just for the purpose of what I need to do when, this step is basically finding a house and getting an offer accepted? And then I pay with a cashiers check or wire on the closing day?  Please don't laugh -- I've never bought a house cash, so I'm being dead serious :) 
• 3. Your LLC gives you a loan for the home -- What are the steps for this? I read that we technically don't have to transfer any money from me to LLC or vice versa. But, is this the "writing a loan note" step? If so, sounds like I can google a loan note template and use that? And write it for 0% interest, ballooning at 12 months, but then sign both as borrower and lender?! That seems like a red flag? Are there any other steps other than this? When does filing the lien happen? Or is filing the deed and lien the same thing?
• 4. You file the deed for that loan at the county courthouse -- I think I read that this can also be done by the title company at closing? 
• 5. You use the money from the LLC to buy and fix up the property 
• 6. Once the property is completed, your conventional lender comes to refinance the loan -- Get a preapproval first! Is this something I give them my projected numbers for? Like ARV and rental income?
• 7. Your conventional lender runs title and sees there is a loan 
• 8. Your conventional lender refinances you into a new loan, and cuts a check to your LLC a check in the amount of 75% of the value. -- Cash the check to my LLC and then transfer the money back to my own account. Okay, so this is where I get confused about tax issues. Won't my CPA see this as income? Although, I'm technically not making any money since I'm not paying/collecting any interest?

One last question. Does my LLC have to be related to real estate or can it be from a totally unrelated business I own?

Thank you again so much!

I can’t figure out how to tag Andrew Postell. Only one Andrew pops up with I do @andrew and it isn’t him. Anyway, here is his post https://www.biggerpockets.com/...

Now I have to look at your photos to check out this amazing hair of yours. Ok, so let's say we buy a home for 85K using our own HELOC and we need 50K for rehab. But, we only have 100K in our HELOC, so we borrow from my in-laws HELOC. You are saying that we can't escrow the 35K we borrow from my in-laws?

Fantastic!!! Thank you!! 🙌🏼👊🏼 

Also, I guess this confuses me even more as to how people are recouping their rehab costs with a BRRRR??