All Forum Posts by: Spenser Hanson

Hi gents, 

Same here.  New to real estate but not Columbus.  Would love to meet and network at any time.

Spenser

The best post in this forum is the one by Mr. Idowu. He has hit the nail on the head. The main reason for an LLC is not organizational purposes, but to do just what the name says; limit your personal liability both financially and legally if things were to go south for any particular property. IMHO, the draw of being able to get cash out by carrying properties in your name, is not worth the risk. That being said, I believe the place you are going to need to look for cash out refi is alternative lending. The reason that financial niche was created is just what you are describing: mainstream and commercial underwriting is simply too strict. You will find higher interest rates there, but that is not the end-all be-all. For example, if a traditional lender takes three months to close on a deal at 4% interest, but an alternative lender closes two deals at two weeks each (and they can) which allows you to flip two houses in that time, which is the better scenario? Someone may say: "the alternative loan is so expensive." Yes but what is your total profit in each scenario by flipping two houses instead of one? Food for thought...