All Forum Posts by: Vincent Zhu

Quote from @Vincent Zhu:

Quote from @Ken M.:

Quote from @Vincent Zhu:

I am selling an brand new house, but stuck for some time because the neighborhood is not very good but I am asking for 700k for the house. It's about 3000sf. So now the situation is it's not easy to neither sell nor rent for more than 1 year. Now someone (likely an investor) offered a seller finance with 350k down payment, and offered above listing price. Looks tempting, but is there any catch with seller finance? Also I am wondering how this investor may benefit from this sell because I am being stuck for more than one year now. Thanks.

If someone is offering 50% down and you have an attorney put the Deed of Trust together, and close through escrow, you are probably pretty safe.

 Thank you so much Ken. Anything else I might need to be aware of?

It looks like you may be in Phoenix. (But, the house could be somewhere else.) The $700k  3,000 sq ft house range market is slow right now in Phoenix and is going into the hot part of the year when sales slow down. The Phoenix area has a lot of Canadian owners putting their places on the market. So there is more competition. If you have a viable sale, I'd seriously look at it. Make sure your interest rate is competitive but at least covers expenses and risk. Buyer pays taxes and insurance and HOA. If you have a balloon, it could make the deal unworkable. There is a lot to consider.

When I was a loan officer, we looked at credit, verified income and checked for liens the buyer might have. 

@Amanda Breck Thanks Amanda! Somehow I just saw your reply! It's very helpful. Thank you! If I analyze, study, purchase, renovate all the properties for myself (not other investor), it is considered "materially participated correct?

Hey everyone,

I'm trying to figure out the best way to hold a portfolio of 5–10 rental properties (not quite there yet, but that's the plan). I'm debating whether to keep them in my personal name or transfer them into an LLC. Here are the specific concerns I have:

1. Holding Structure:

How do you all hold your properties? Do you keep them personally or under an LLC? What factors influenced your decision?

2. Refinancing & Due on Sale Risk:

I'm considering refinancing my properties to get the benefits of an LLC (liability protection, easier transfers, etc.), but I'm worried about triggering the due on sale clause. Has anyone refinanced into an LLC? How likely is it to actually trigger due on sale issues in your experience?

3. DSCR Financing Trade-Offs:

If I refinance using a DSCR-based loan (which I understand often carries a higher rate), has anyone experienced significantly higher rates after moving properties into an LLC? How do you weigh that cost against the benefits of LLC ownership?

4. Insurance Costs:

The insurance premiums for my rental properties are already high (I received a quote of around $2,500 annually for a duplex valued at roughly $430k – almost double what the seller originally paid). If the properties are owned by an LLC, do insurers like State Farm still cover them, or do I need to look for a specific commercial landlord policy? Are premiums typically higher for LLC-owned properties?

I’d love to hear your personal experiences and any advice you have on structuring your portfolio for refinancing and insurance efficiency. Thanks in advance for your insights!

Quote from @Vincent Zhu:

I am selling an brand new house, but stuck for some time because the neighborhood is not very good but I am asking for 700k for the house. It's about 3000sf. So now the situation is it's not easy to neither sell nor rent for more than 1 year. Now someone (likely an investor) offered a seller finance with 350k down payment, and offered above listing price. Looks tempting, but is there any catch with seller finance? Also I am wondering how this investor may benefit from this sell because I am being stuck for more than one year now. Thanks.

If someone is offering 50% down and you have an attorney put the Deed of Trust together, and close through escrow, you are probably pretty safe.

Quote from @Anderson S.:

Sean are you a direct lender or a broker?

 Wholesale lender!