Jersey City Journal Square Multi Family Investment

[Amit Sinha]

I am interested in buying a  2-3 unit multifamily house in JSQ are of Jersey City as an investor. All the units are for rent. A few questions for the experts here :

1. Setting up an LLC

When should I set it up? How do I set it up? Anything special I need to consider while setting it up? Any advice on who to contact first?

2. How easy is it to get Mortgage as an LLC vs as an individual? Are the rates quite different? I am looking at 650k property and will put in 250k down payment. Any advice where to start looking for rates.

3. Location wise : has anyone recently done any transaction in this area? What will be your suggestion?

Regards

Amit 

[Darren Sager]

@Amit Sinha you're better off purchasing it in your name to get lower costs on your mortgage then transferring it into the LLC. In most cases the lenders never call the loan so you should be fine. It's a risk but again as long as you keep paying it seems the majority of members here haven't had an issue with doing it that way. If you purchase thru the LLC there are some lenders who will also do a 30 year loan now in NJ. So it's really your choice. The rates will be a tick higher though. $650K for a 3 family in Journal Square seems a bit low at the moment (depending if it's actually near Journal Sq as some realtors will say it's near there but it really isn't in my opinion) . Putting $250K down also seems high.