All Forum Posts by: Mike Burkett

@Greg Bennin I assume the S-Corp is an LLC? If you own the LLC, you can deed the property into your name. You have owned the property for a year. The change in title to you individually does not initiate a new 6 month waiting period for a cash out refinance.

https://www.fanniemae.com/content/guide/selling/b2/1.2/03.html

@Jemeil Lambert  Give Ray Negrete at The Rehab Squad a call.  Good guys.  

@Matt F. @Robert Kirkley @Account Closed If you don't have W2 income and if you don't have 2 years stabilized or improving income from the same business on your tax returns, conventional financing will be difficult if not impossible. Non conventional "portfolio" is the way to go. 30 year loans. Rates are a little higher. Loan amounts and rates are a function of property cash flow, your credit score, LTV, loan size, cash reserves. Happy to help if you need additional details.

@Manpreet C.  I'm assuming you are buying investment properties.  Try Garland, Mesquite, Balch Springs, Lancaster, Cedar Hill, Arlington, and Grand Prairie.  

@Christopher Lessing @Mike Cumbie  I'm currently trying to sell my 1970 house.  Had it under contract.  Buyer walked 12 hours after inspection.  Why?  (Buyer via buyer's agent): "We didn't think the seller would be willing to replace all of the existing aluminum wiring in the house and replace it with copper".  Entire house was pigtailed years ago.  They were correct, I would not replace the aluminum wiring.  

@Jeff MacIntosh  I like @Aaron Gordy point of view. Jeff, it sounds like your financial situation is good enough for you to mortgage your house. You might consider a HELOC. Draw that money down and use it for the loan you will make to your buddy in Austin. You will have a first mortgage on his house. If he doesn't get the house completed and sold, you get to foreclose and own the house yourself. Make sure you have enough remaining in the HELOC to cover the cost of foreclosing and completing the house (any remaining costs he has not completed).

Before doing that, I would ask and verify a number of things: 1) Is this project the cause of him running out of money?  If so, what is the problem; 2) Is he using a contractor?  Is he any good?; 3) Are his remaining cost estimates accurate?; 4) Is his estimated sales price accurate?; 5) Verify the delinquent taxes;  6) Verify no liens on the property; 7) Verify he is the sole owner of the property; 8) Get an appraisal on the property;  9) Get legitimate deed of trust and note documents; 10) Close the loan at a title company; 11) Do not lend him more than 65%-70% of the estimated sales price.  There are probably other things I'm missing.  

I'd do the loan for him, but he doesn't have any money.  I would want someone else on the note to guarantee the loan.  If you want to partner with him and be on the deed and you have the financial wherewithal to guarantee the note, we can talk more if you both are interested.  

Hope this helps. Good luck.  BTW, I don't agree with never doing business with friends.  I prefer doing business with people I trust and I generally trust my friends more than people I don't know. 

@Anna Catron I'm neither an accountant or a lawyer. Check with both of them. There are both legal and accounting implications with buying the LLC versus the properties individually. Personally, I would have your LLC buy the properties from his LLC primarily to eliminate any potential contingent liability from his LLC. (You have no idea what kind of bad things his LLC has been up to over the years)

@Camille Johnson @Jay Hinrichs  Camille, I read through all these threads and I feel like I just did 80 laps on the hampster wheel.  Sounds like you have the operations side of the business down.  You are having difficulty with the capital side.  

I know you buy and renovate, but I did not read what your exit strategy is.  Are you selling the houses or are you keeping all of them (some of them) as rentals? 

In your original post, you stated that your investors are receiving double digit returns.  Are they providing 100% of the funds?  Are their funds structured as a loan (you give them the right to foreclose, fixed return) or equity (typically share in the profit).  Do you and your husband contribute cash to the deal? 

I promise to share my thoughts, but I need to know your exit strategy.  

@Darius Ogloza  With 14 days, you should have gone HM from the beginning.  It doesn't sound like the bank and their appraiser works with investors because the appraiser should have included an as-is value as well as an after repair value.  They didn't.  Anchor Loans does a lot of business in CA, you might see if they can make something happen in 4 days.