All Forum Posts by: Randle Weaver

Banks do not usually lend to an LLC. If you are getting a loan you will need to keep it in your name. You could transfer it into an LLC, but the banks have a clause that if the title transfers while you have a loan they can call the loan due.

People sometimes want to go out and get everything done, when in reality you have time before each phase is truly necessary. If you are not near death, just have a will and save yourself the money right now. Invest that money into property.

People are also worried about being sued and losing the property. In reality, they cannot get your property, rather only the equity in the property. So, if you have a loan on the property jumping into an LLC may not be necessary right away either, plus the earlier fact that the banks won't like it. Also, with a single member LLC, ultimately you are still liable. Plus, your documents and accounting better be spot on or they can pierce the corporate veil and what was the point in an LLC.

Some say, get a trust, then get a LLC and put it in the trust and then get property and put it into the LLC. That method will cost minimally $2,000. Not worth it at first. That is nearly closing costs on a deal.

***Get yourself a property and figure out if you like being a landlord and make sure you are making money and happy. Then invest in a LLC. Once you are thinking about getting a second LLC to limit the damage any one LLC may have to your empire, then get a Trust.

Please remember this is my opinion based on my experience and others opinions may differ. Yes, I have a trust. Yes, I have 2 LLC's. Finally, yes I have rental properties.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $30,000
Cash invested: $6,000

Found a landlord that is looking at unloading his properties.
I am trying to figure out how to purchase everything he has.
He is selling a few each year, so I am trying to figure out the deals.

What made you interested in investing in this type of deal?

My family has invested in real estate. My grandmother started the trend and we have all seen how well she has done. She put the bug in us all.

How did you find this deal and how did you negotiate it?

I told a friend of mine that I was looking at purchasing rental property in Tulsa. My friend owns a carpet cleaning service in Tulsa. He spoke to the landlord of the property he was cleaning and mentioned that I was looking to purchase a rental. This all happened the same day. CRAZY! The landlord told him that I could buy this house for $30,000 if I could come up with the money before the end of the year. Well to make a long story short, I found the money, and the property is mine.

How did you finance this deal?

I took out a personal loan to get the deal done. After repairs, I have a tenant, and I am refinancing to get a better rate.

How did you add value to the deal?

I bought the house that needed a new roof, water heater and some electrical panel upgrades. The house was renting for $650/mo. The house appraised at $45,000. However, with all the repairs that were needed, we got a great deal at $30,000. I put $6,000 into repairs and now have it rented for $725/mo.

What was the outcome?

After all the repairs we are renting the property for $725/month.

Lessons learned? Challenges?

Deals can pop up anywhere at anytime.
I have been looking for a deal for a long time and out of nowhere and in the unlikeliest of circumstances a deal jumped into my lap. Keep looking and let people know.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I absolutely recommend you use an Professional Engineer (PE) to do your home inspection. They do a better job than the basic home inspectors and they have saved me tens of thousands. Totally recommend it.