All Forum Posts by: Tim Sipowicz

@Daniel Hyman just opened a separate account for the property so that is what I’ll be doing. Thanks for the input! 

Thanks @Steven Foster Wilson. I won't be using the LLC for the property but the principles of what you said would still remain true even if it was just a separate account. Use that account just for property expenses and income.

I'm a newbie investor closing on my first property this Friday. I had a question about different bank accounts and how to allocate rental income. I am starting an LLC but have decided not to open up a business account and deposit the rental income through that type of account, I'll be using the LLC for another venture. What is the best practice to keep everything aligned and organized in terms of income generated from the property. Just open another simple checking account and label all deposits "rental income." I may be overthinking but would like to know if this is the best for tax purposes or anything in general. Hope that makes sense and appreciate any feedback.

@Crystal Smith thanks for the input! I never really considered it “shady” like mentioned before. I’ve just never heard of “fix to rent” and never seen it advertised in a listing. I just think now that they were possibly saying that it’s an option since the building was in need of repairs. I don’t think it’s a bad option at all if the numbers make sense so I’ll be researching the topic more  and reaching out to Renovo for some more details about the process. 

@Jonathan Klemm thanks for the response. It is a rehab loan with interest only payments for a certain time frame and then the loan is converted to a 30 year conventional. Still don't know the full process of it or 100% familiar. I assume they would cover purchase price and rehab costs, you pay the interest only payments monthly and then the new loan amount would be based on the ARV. So I guess fix to rent is just a different term for hard money overall.

@Zack Karp thanks for the input. Seeing it posted in the listing kind of threw me off as well but they weren’t promoting a certain lender or anything so it may of just been a suggestion of financing to use. I agree with you about it being a sort of hard money. It’s interest only payments on the money borrowed and then you’re just wrapped into a 30 year conventional after a certain time frame. Like you said, with proper due diligence, it may not be a bad strategy. 

@Bob Reinhard great advice. Thanks

@Henry Lazerow ok understood. It’s the first time I’ve seen this sort of financing actually advertised on a listing. It’s located in the south suburbs of the city so not a war zone area or high crime. I appreciate the insight though, thanks.

Hello everybody, I am a newer investor and my agent sent me a 4 unit in a C class neighborhood for 300k. It stated at the end of the description that fix to rent financing is available for this property. Has anyone ever used this type of financing and could elaborate a bit more? I did some research and it’s a rehab loan for the most part it seems so I’m curious if it’s just another term for hard money lending due to the interest only payments. Also stated the loan could be rolled into a conventional 30 year loan. Any insight would be very helpful. Thanks 

I recently had a discussion with my agent and we were talking about the changes regarding obtaining loans for investment properties. What have people been seeing when obtaining conventional funding? Higher down payments? Higher closing costs? Higher rates? Speaking with my lender and he stated the rate would be around a 4.5% which is still solid for an investment. Look forward to reading your responses.