All Forum Posts by: Ronald Rohde

I mean on my virtual deal am I going to have to use a company that in the same state and county and the property or can do I try to find a attorney in my own city that close any virtual deals

@Ronald Rohde, the reason I posted this was not to talk about a great no-risk deal, but to reach out for advice and help me to see the risks I may be overlooking, so for that I do appreciate your post. Because you mentioned my builder, I'm not sure you understand the investment opportunity ... selling to a builder is the exit strategy. The investors are putting up the money to buy the land, the PMs have already done the due diligence necessary to be sure the lots can be subdivided and are buildable and will take care of city approvals so the homebuilder, once he purchases can immediately break ground and get to work. They also have a list of interested buyers in place, some whom they have worked with in the past, so they are able to develop the land with their needs in mind.

Your suggestion that the CA housing shortage was fabricated is an interesting one that I have not yet heard of or considered. I certainly have a lot to learn, but my common sense tells me that just the fact that people are willing to pay such high rents is evidence enough of a housing shortage. ...For example, although still under-market because I want to keep my tenants, the rent on a little, nothing-special-about condo I own has increased by 56% just in the last 8 years. I know my tenants want to buy, but with rising interest rates and housing prices, that dream is getting harder to reach. I'm curious what you think the reason people will continue to pay those exorbitant rent increases is if not for a shortage of affordable housing.

So I should call a title company in Arkansas and open escrow ? Can I wholesale this deal just over the phone and email both contracts to them? And to get to paid I’ll ask them to wire to my account?

You are right, I should of worded differently and my opinion does not replace legal counsel. In my personal experience my lender has told me multiple times that this can not be done, I wanted an out of state property to my WA LLC. I was told most title companies will not allow you to transfer title into an LLC that is not qualified or formed in the state where the property is located. Confirmed the same information with my attorney as well.

@Ronald Rohde, you are also correct in stating that biggest risk is that the lots are not sold. An inevitable risk we all face as RE investors. Who knows what is going to be happening 18 months from now? 

The only holding costs I can think of would be property taxes. So, worst case scenario is a downturn in the market happens and we sit on the land for a few years. ...Of course it would suck if my money wasn't working for a few years, but it wouldn't be a total loss and I would just have to wait it out (as many of us have had to do before).

The upside is that this is southern California where we have a housing shortage, and the biggest demand in RE is affordable housing. By focusing on tract homes, this project meets that demand.

If it's out of state rental the LLC must be created in that state. If you buy everywhere that narrows your choices. Like mentioned above it's based on your risk tolerant. If you have 500k of equity among 4 houses and you put them in 1 LLC 1 law suit and it's all gone.

Also theres huge benefit in term of taxes, the more LLC you have the more you spend the more expenses you right off.

Theres also a better and common way to protecting your asset by having a parent LLC from Wyoming or Nevada owning all of your LLC, reason for that is those 2 states have tougher laws to penatrate during a lawsuit, but dont quote me on it.