All Forum Posts by: Robert E. Medlock II

@Joe Conklin

Is the house elevated(off grade) or a slab? You can get a home inspector or better yet an engineer to give it a look for little to nothing. Most likely, it will be a settlement issue. check the ceiling in that room and the edges where the wall meets the ceiling. Do you see any diagonal cracks? If so that is a shear crack. Meaning the wall is "shearing" away from the ceiling because of the foundation movement. Most Shear failure is on a 45 degree diagonal.  

😆 Wayne thanks for the reply. As I did not obtain or hold an MBA (not that you need one to be in business) I look fwd to your thread conversation on the LLC ownership, and/or why it is not necessary. Learning new perspectives is always great!

@Brooks Rembert thanks for the insight. This is how I thought it would play out, just like you worded it. 

From your experience does that also mean, this method works in the beginning, but you eventually bought outright directly from the LLC? Or do you continue to use the same strategy of buying in your name and transferring to the LLC?

@Wayne Brooks "...forget the LLC and move on". Why would you take this route? "Adequate insurance" still leaves you vulnerable to lawsuits against your personal assets. Isn't that why you would create an company structure in the first place: reduce exposure and taxation benefits.

Hello BP community. I have been racking my brain for the past few weeks trying to understand how NOT to violate the "Due on Sale" clause.

Here's the scenario: Jane wants to buy a 4-plex. However, as a new investor of multi-family properties, she can "invest" sooner and much easier as an owner-occupant. After purchase, Jane would also like to move out of this 4-plex ASAP to realize it's full cashflow in her growing portfolio. The question that has now arisen is how can she purchase as an owner/occupant AND then hold the property under her current LLC without triggering a possible due on sale clause from a quit claim transaction? 

Any insight on how this can masterfully be done with surgeon's precision would be greatly appreciated. Likewise, if possible, to what degree can this be duplicated?

@Matthew B.

Matt, whats the latests on these MF properties?

Jacob, thanks for the info. Ill apply.

Lance, the pres is about 63MB so its extremely large. But basically we talked about rehabbing a house. Some do's and dont's. Ill be happy to answer any specific questions you have. Im always here to share. 

@Jordan Finkelman, thanks for the encouragement. It would be interesting to see what you have for your 1,3,5,7 and 10 yr  goals. Please share if you can. 

@Brandon Turner definitely will. Thanks for the great tip. I'll edit/setup my keywords to get more info.