All Forum Posts by: Ty Coutts

Hey Jamie,

It's great to hear that your family LLC has been steadily growing and maintaining a strong portfolio. Tapping into the equity of your mobile home portfolio can be challenging, but there are several approaches you can take:

Home Equity Line of Credit (HELOC):

Primary Residence: If you own a primary residence with substantial equity, consider taking out a HELOC to fund additional investments or improvements to your mobile homes. This can be a temporary solution until you find more favorable financing options.
Private Lenders and Hard Money Loans:

Alternative Financing: Private lenders and hard money lenders may be more willing to offer loans secured by your mobile home portfolio. These loans typically have higher interest rates but can provide quick access to capital.

I am a loan officer in CO, so I may be able to help you, as well as advise you on how you can increase your appeal to lenders. Please DM me if you have any further questions or if you would like to discuss your options further. 

Hey Nico,

It sounds like you have a solid foundation for your project in central Maine.

Navigating Incentive Programs/Tax Strategies:
State and Local Programs:

Efficiency Maine: Check out Efficiency Maine for incentives on energy-efficient upgrades like windows, insulation, and heat pumps.
MaineHousing: Look into programs offered by MaineHousing that might provide financial incentives or assistance for multifamily rehabs.
Federal Programs:

Federal Tax Credits: Explore federal tax credits such as the Low-Income Housing Tax Credit (LIHTC) if applicable.
Energy Efficiency Incentives: Investigate federal incentives for energy-efficient improvements through the U.S. Department of Energy.
Consult a Tax Professional: Work with a tax professional who specializes in real estate to ensure you are maximizing all available tax benefits and incentives.

Finding Local Contractors:
Local Contractor Networks:

Angi (formerly Angie's List): Use Angi to find reputable contractors in your area. Look for those with experience in multifamily properties and read reviews from other property owners.
HomeAdvisor: Similar to Angi, HomeAdvisor can connect you with local contractors who specialize in the specific types of work you need.
Referrals: Ask for referrals from other local property owners or real estate professionals who have undertaken similar projects.

RFQ/RFP Process: Issue a Request for Qualifications (RFQ) or Request for Proposals (RFP) to gather detailed bids from contractors. This process helps ensure you find qualified professionals who can meet your project requirements.

I am a loan officer in CO so if you need referrals I could help. Please feel free to DM me if so. 

Hello, Dean Valadez, I think the best way is to weigh your options then take it from there. 

Option 1:

Pros:
Simplicity: You avoid the potential complications of alerting the lender.
Maintains Low-Interest Rate: Since your loan is at 3%, you continue benefiting from this favorable rate.
Avoids Immediate Full Payment: You won’t be forced to come up with $45k immediately.

Cons:
Risk of Detection: If the lender identifies the payments coming from an LLC, they might call the loan due.
Potential Consequences: If the lender enforces the due on sale clause, you might be forced to pay the remaining loan balance quickly.

Option 2:

Pros:
Transparency: Being upfront might build trust with the lender.
Possible Flexibility: Given your solid payment history, the lender might agree to the arrangement.
Legal Compliance: You avoid any potential issues with violating the terms of your mortgage agreement.

Cons:
Risk of Loan Acceleration: The lender could still decide to call the loan due, forcing you to pay the remaining balance.
Potential for Higher Payments: If forced to refinance, you might end up with a higher interest rate.

Given the pros and cons of each option, but a cautious approach might be best:

Consult a Real Estate Attorney: This can give you a clear understanding of your legal standing and potential risks.
Evaluate the Importance of the 3% Rate: Weigh the benefits of keeping your low-interest rate against the risks of potentially having to pay off the loan early.
Consider a Gradual Transition: This method allows you to continue benefiting from the low-interest rate while reducing the risk of triggering the due on sale clause. Hope this helps!

Hey Ethan,

Welcome to the world of real estate investing! It is truly the best way to build generational wealth so props to you for taking the first steps. Here are some steps to help you get started:

Education and Learning:

Read Books: Start with foundational books like "Rich Dad Poor Dad" by Robert Kiyosaki and "The Millionaire Real Estate Investor" by Gary Keller. 

Online Courses and Webinars: Platforms like Udemy, Coursera, and BiggerPockets offer courses specifically tailored to new real estate investors. Look for beginner-friendly courses to build your knowledge base.

Networking and Mentorship:

Join Real Estate Forums: Engage with online communities such as BiggerPockets, where you can ask questions, share experiences, and learn from seasoned investors.

Attend Local Meetups: Look for real estate investment clubs or meetups in your area. Networking with local investors can provide valuable insights and potential mentorship opportunities. You can sign up for these on a great website called Meetup.

Financial Preparation:

Evaluate Your Finances: Understand your current financial situation, including savings, credit score, and any potential sources of funding.

Create a Budget: Establish a budget for your first investment. This should include down payment, closing costs, potential rehab costs, and a reserve for unexpected expenses.

Market Research:

Choose a Market: Decide on a market where you want to invest. Consider factors like job growth, population growth, and rental demand. Start with your local area if you are more comfortable.

Analyze Properties: Use online tools like Zillow, Realtor.com, and Redfin to analyze potential properties. Look for properties that meet your investment criteria.

First Steps in Investing:

Start Small: Consider starting with a smaller investment, such as a single-family rental property or a duplex. This will help you gain experience without taking on too much risk.

Get Pre-Approved: If you plan to finance your first investment, get pre-approved for a mortgage. This will give you a clear idea of your budget and make you a more attractive buyer.

Continuous Learning:

Stay Informed: Real estate is an ever-changing field. Stay updated on market trends, new investment strategies, and changes in real estate laws.

Seek Feedback: Learn from your experiences and seek feedback from other investors. Continuous improvement is key to long-term success.

Please feel free to DM me if you want to discuss further and potentially get your investing started! Hope this helps. 

What's up Jay,

Given your situation, here are a few strategies you could consider to secure the rehab budget while respecting the seller's desire to maintain a first-position lien:

Home Equity Loan or HELOC:

If you own your primary residence or another property, consider tapping into its equity through a Home Equity Loan or Home Equity Line of Credit (HELOC). This would allow you to secure funds without placing a lien on the new property.

Personal Loan:

Investigate personal loans from banks or online lenders. These typically don't require collateral but come with higher interest rates. Ensure the monthly payments are manageable within your budget.

Private Lenders or Hard Money Loans:

Approach private lenders or hard money lenders who may be more flexible with lien positions. While interest rates might be higher, they can offer quicker access to capital.

Seller Financing Adjustments:

Negotiate with the seller to see if they are willing to adjust terms slightly. For example, propose a smaller initial down payment and larger monthly payments, which could free up some capital for the rehab budget.

Partner-Investor:

While not your preference, finding a partner-investor could be a viable option. Given your expertise as a contractor, you might find an investor willing to fund the rehab in exchange for a profit share or interest on the loan.

Cash-Out Refinance:

If you own other investment properties, consider a cash-out refinance to pull equity from those properties to fund the rehab.

I work for Aslan Home Lending and we have a HUGE variety of loan products, including the ones mentioned above. Please feel free to DM me if you would like to discuss your options. Even if I am unable to help, I could refer you to people who can. Hope this helps!

Hey Ane,

Welcome to real estate investing! It truly is the best way to achieve generational wealth. Here are some steps and considerations for ensuring your LLCs are compliant from a legal perspective:

For Your SDIRA LLCs in Florida:
LLC Registration: You have filed the foreign LLCs with the State of Florida, which is essential.
FINCEN Registration: Registering with FINCEN (Financial Crimes Enforcement Network) was a necessary step for compliance with the Corporate Transparency Act.
Ongoing Compliance:
Annual Reports: Ensure you file annual reports for your LLCs with the Florida Department of State.
State Taxes: Check if there are any state-specific taxes or fees you need to pay for the LLCs.
For Your Non-Retirement LLC in Nevada Buying Property in Michigan:
LLC Registration:
Foreign LLC Filing: Once the purchase is finalized, file your LLC as a foreign entity in Michigan.
FINCEN Registration:
Corporate Transparency Act: As of 2021, the Corporate Transparency Act requires LLCs and other entities to register with FINCEN. If this LLC was formed after January 1, 2021, it needs to be registered with FINCEN.
Ongoing Compliance:
Annual Reports: File annual reports with both Nevada and Michigan to keep your LLC in good standing.
State Taxes: Check if you need to file state taxes or pay fees in both Nevada and Michigan.
General Compliance Tips:
Local Business Licenses: Depending on the city or county, you may need a local business license for operating your LLC.
Registered Agent: Ensure you have a registered agent in each state where your LLC operates. This is typically a requirement for maintaining good standing.
Record Keeping: Maintain meticulous records for each LLC, including operating agreements, minutes of meetings, and financial records.

You should probably consult with a CPA or attorney just to make sure you meet all compliance guidelines. We have a compliance division here at Aslan and I can answer any further questions you may have. Please feel free to DM me if you need any further assistance. 

Hello, Ben Mardis, here are the specifics for Washington State:

Buyer’s Responsibility: Technically, the buyer is responsible for paying their broker's commission. However, it's common practice for the seller to cover this cost. This means that the buyer's broker’s commission is usually taken care of as part of the overall transaction, similar to the standard practice mentioned above.

Broker’s Agreement: The buyer's agent will typically negotiate this arrangement upfront, ensuring that the seller covers the commission from the sale proceeds. It’s part of the agent's duties to make this clear in the purchase agreement or the buyer's brokerage agreement.

Clarification: The broker you met with was likely emphasizing that, according to the letter of the law or the standard contract language, the buyer is technically responsible for their agent's commission. However, in practice, the broker always negotiates for the seller to pay this commission.

Negotiation Tactics: Good brokers negotiate to ensure that the buyer is not out of pocket for their agent’s commission, aligning with common practices and making the process easier for the buyer.

How to navigate this:

Ask for Clarification: If you’re unsure or need reassurance, ask your broker to explain how the commission will be handled in your specific transaction.

Review Agreements: Carefully review the buyer’s brokerage agreement and the purchase agreement to ensure that the commission details are clear and that the seller is covering the buyer’s agent commission as negotiated.

Hello, Hazem Abdallah, when choosing a company for cold calling, especially in terms of calculating KPIs and ensuring lead quality, it’s important to consider several factors, including their reputation, services, technology, and customer reviews. Here are three that I like:

Callbox
Overview: Callbox specializes in B2B lead generation and appointment setting services.
Strengths: Offers robust KPI tracking, multi-channel marketing, and high-quality lead generation.
Technology: Uses proprietary CRM and lead management tools to track and optimize KPIs.

SalesRoads
Overview: A B2B appointment setting and lead generation company that focuses on quality.
Strengths: Known for high-quality leads, detailed reporting, and KPI tracking.
Technology: Provides detailed metrics and performance analytics to clients.

CIENCE Technologies
Overview: Specializes in lead generation, appointment setting, and data enrichment.
Strengths: Strong emphasis on data-driven approaches and KPI measurement.
Technology: Uses advanced analytics to track lead quality and performance.

Here is some information to consider when you make your decision:

Reputation and Reviews: Look for companies with positive client testimonials and case studies demonstrating success in your industry.

KPI Tracking: Ensure the company has robust systems in place for tracking key performance indicators (KPIs) such as call volume, conversion rates, appointment setting rates, and lead quality.

Lead Quality: Evaluate how the company sources and qualifies leads. High lead quality is crucial for effective sales follow-up.

Technology and Tools: Companies that use advanced CRM systems and analytics tools tend to provide better insights and more efficient lead management.

Customization: Look for companies that tailor their services to your specific needs and industry.

Transparency: The company should provide clear and regular reporting on campaign performance and KPIs.

Hey Pinny,

When considering purchasing a turnkey property here are a few key points to keep in mind:

Experience and Reviews: Research reviews and testimonials from other investors who have worked with RentToRetirement. Look for feedback on their service quality, property management, and overall investment performance. Join real estate investment forums or groups where you can ask for firsthand experiences and advice. However, I have seen some weird listings on this site and it also does not have the best reviews. As an investor in real estate myself, I much prefer working with an individual rather than a site like this. However, that is just my preference. 

Market Selection Criteria: To choose the right market, consider factors such as:

Economic Growth: Look for markets with strong job growth, a diverse economy, and increasing population.

Rental Demand: Identify areas with high demand for rentals, which can be indicated by low vacancy rates and high rent-to-price ratios.

Affordability: Ensure the market offers properties within your budget that also meet your cash flow and appreciation goals.

Property Management Quality: Verify that there are reliable property management companies in the area to handle day-to-day operations, especially if you are investing from a distance.

Comparative Market Analysis: Perform a comparative market analysis to compare potential markets. Assess historical data on property appreciation, rental income trends, and market stability. Tools like Zillow, Realtor.com, and local real estate websites can provide valuable insights.

Choosing a market involves balancing risk and potential return. Thorough research and a clear understanding of your investment goals will help you make a more informed decision. I am an experienced loan officer and I have multiple investment properties myself. Glad you are looking into real estate investing as, in my opinion, it is one of the best ways to build generational wealth. Please feel free to DM me if you have any other questions!

Hey Sahara,

Given your situation, there are a few immediate actions you can take:

Continue Negotiating with PennyMac: Request an urgent escalation of your case. Explain your medical and family situation and ask if they can reconsider the payoff amount or provide any temporary assistance or delay in foreclosure to facilitate the sale. Persistence in reaching a supervisor or someone with decision-making authority can sometimes yield better results.

Contact HUD and Explore Options: Immediately follow up with the HUD counseling representative. Explain the urgency and seek advice on any potential waivers or deferrals for the partial claim. HUD might have programs or options for individuals facing pre-foreclosure due to COVID-19 related hardships.

Communicate with Your Buyer: Discuss the situation with your buyer transparently. See if they might be willing to increase their offer slightly or cover some closing costs. This might be a long shot, but open communication can sometimes lead to unexpected solutions.

While these steps may not guarantee a resolution, they could help you find a path that avoids foreclosure and allows you to relocate your family. I am a loan officer so I could be able to help you navigate this. Please contact me if you need further assistance or if you just want to chat. Feel free to DM me at any time.