re: Real Estate Investing......... New update pg 7

I feel the need to speak up to a couple points made in this thread, especially the absolutes ("you never get this" or "that's impossible")

I have 14 rental units in Baton Rouge consisting of condos, SFRs, and an 8plex. Been investing since undergrad and I'm 33 now.

ALL of my properties are in LLCs. This is basic step one. I'm an attorney and have seen liability cases from accidents at property almost bankrupt individuals. If properties are in a LLC or corporation then your personal assets are shielded from liability (unless perhaps gross negligence or intentional misconduct).

Regarding getting a loan for a llc: I have never had a problem getting a loan for an LLC. The down payment and interest rate will be higher and probably variable but that has more to do with the fact that your buying an investment property as opposed to primary residence. More risk to bank that you will just walk away if things go south.

And transferring a property under a personal loan to an llc also shouldn't be a problem because 1)the bank maintains first lien on the property and can foreclose if the note isn't paid and 2) if a property is transferred to a llc the individual remains liable on the note. Just because you transfer ownership of property doesn't mean you you change guarantees under the mortgage. So from the banks perspective a) they still have title on the property if note isn't paid and b) you are still liable under this original note. Perhaps you need to alert the bank of the transfer but they will have no problem if you are transferring to shield personal liability.

Anyone else have other stories pertaining to this? Always curious to learn more.

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Since my last bump, I have commented more in Fat Bastards thread but we have been fairly busy.

We bought the house from Pg 7 along with another rental house. We bought a flip project in March or so, rehabbed and closed on July. Have another flip house in title right now and trying to close in the next few weeks.

Totals/Updates:
- 4 rent houses with great tenants in each one. Last two bought with our line of credit and rolled into 5/1 15 year loans 60 days later.
- 2 completed flips with third in contract.
- Used most of the cash from the last flip to completely pay back our LOC and now at a $0 balance.
- We have turned our focus almost exclusively to foreclosures. We have found that if you can get through the BS that comes with buying/selling one, the money is a lot better on flips and is easier to roll into a more fixed product from the bank.

New flip property under contract is a mobile home in pretty good shape.
2010 model
3 bedroom/2 full baths
2,400 square feet
Needs paint, flooring, appliances and a few fixtures.
Cost $55K and estimated rehab is between $8K-9,500.
Similar properties selling for around $110,000 in the area.

We recently lost what could have been our best deal ever. Great 4 bedroom foreclosure. VA owned property asking $82K. Offer $75K cash and got turned down. 3 weeks later VA drops price to $74K and we offer full price that morning to find out someone else was in before us. The house needed about $35K for rehad but could have sold for $160K at a minimum. We were pissed because it seemed like a shady deal with the VA. Someone made some money.

Who are some of the banks you guys are working with for your commercial loans? Maybe I should start another thread on this?

for you guys doing foreclosures are you picking them up on the courthouse steps or are you buying them after they are back on the market?

We are looking at them when they are coming back on the market. Lots of bank and VA foreclosures around my area.

I wish I had more time to get more involved with the auction process. They are some great properties around me that don't get sold and end up on MLS.

No doubt. We will keep doing what we have been but I have always thought about it.

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I just cannot bring myself to roll the dice on that.

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Agreed. I would not buy anything without inspection with maybe one or two exceptions.

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so are you working with a realtor that understands how necessary it is to get you in to see them as soon as they come on the market?

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Yes. I will typically get an email/call within the first 24 hours of a property hitting MLS. He knows what our appetite is and if it fits our box, he calls and sets up a showing. If I can't make a showing, he will go see it and let me know if I need to get over there.

We get beat on some properties but it is usually not a timing issue, its because we offer to low. He knows our market very well for rental properties and flip properties. I could not stress how important he has been for us and I consider him a partner in my RE business and I'm pretty sure he does too.