All Forum Posts by: Roberto Westerband

@Daniel Dietz  @Julian Buick thanks for the feedback! 

@George Despotopoulos We're looking to get our first investment property as a buy and hold so 12-18 months not likely to work for us; ideally want to get 24-36 months and eventually BRRR that property. I was figuring rates north of 6% so that sounds about right to me.

Picking up on this post from a few months ago; is title insurance necessary on a property that is owned by an LLC free and clear?

What kind of rates are investors getting from private lenders? What's the holding period? Are the payments interest only? 

Has anyone had success in litigation when having a Series LLC or a Trust with an LLC as beneficiary combined with an umbrella policy? Interested to know success/horror stories on these tools as asset protection strategies.

@Jeff B. thanks! 

@Jeff Rabinowitz Let's say I own the investment property free and clear with no liens. If I transfer the property to an LLC via Warranty Deed, do I still need to update the insurance policy?

If a property is transferred to an LLC, what are the pros/cons of using a Warrant Deed vs. a Quit Claim Deed? In addition, will the title insurance policy still cover the investment property once the deed is transferred?

@Christopher Phillips You hit the nail on the head. By electing to be taxed as an S-corp I'm both a shareholder and an employee. Plus if we take distributions out we do not pay employment taxes. Salary tax is 15.3% which is fine. My partner and I have an LLC taxed as an S-corp and did file the 2553.

My question is more on the actual operating agreement. Hoping that a real estate attorney on this platform can provide some color on whether there needs to be specific provisions in the operating agreement related to an S-corp.

Does anyone know of any "investor-friendly" credit unions? Looking for investors that have had long term relationships with credit unions. Which have become stricter, and which are more flexible in terms of acceptance criteria?

If an LLC elects to be taxed as an S-Corporation, what are the specific tax provisions that would need to be included in the Operating Agreement in order for that tax status to hold in court down the road? Thanks

Having worked in real estate finance at a bank in another lifetime, I can tell you that @Kenneth Cowan is right. Every workout/REO department has its own set of analysts/workout officers that create a write-up (which gets marked up and goes through 2-3 iterations) which then goes to a committee (depending on how big the bank is it may just go to the senior lending officer or chief workout officer), but before that they have to get appraisals, etc. and find out how much of a loss will need to be charged off and added to their ALLL (allowance for loans & lease losses). The bank is taking a hit in a short sale and it's going to affect its operating income. They aren't likely to move mountains to speed the process up. The best thing to do is provide them everything they need from you.