All Forum Posts by: Ronald Rohde

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.

I have been thinking of doing a 1031 on my SFR rental properties in SoCal with a 3.2 cap rate. After looking at Multifamily units, I discovered commercial buildings with NNN leases that can be as long as 20 years with around 5 percent cap rate. It almost sounds too good to be true. Hands off management and just wait for the rent check? That would be ideal.

Now I understand location and rent to revenue ratio is important.  I would also like to get a lease backed by a national corporation like Bank of America or Burger King.

Assuming I can find a deal that has meet all the criteria, am I missing anything else?

Please excuse me for my ignorance as I have never dealt with commercial properties before but I am very intrigued by the apparent ease of NNN deals.

 true enough  in 05 in our market you were a rock star if you owned land that could or was entitled.. by 09it was a yoke around your neck

last 5 years we have KILLED it with entitled land far better than any buy hold would come close to doing.

Has anyone run comps on similar houses with and without solar panels? Has anyone sold properties with them?

I'm curious about how it would affect sales price and whether it could be a value add on a flip after collecting state rebates and tax credits.