New Late Start OOS Investor - concerned about assets/need LLC?

[LaShon Evans]

Greetings BP Community from the frozen lands of Soldotna, Alaska. It's a small rural area about 3 hours S of Anchorage- not exactly a hot RE market, but we love living here and my husband has a fabulous job with about 12-15 years left in his career. I'd love to shorten that for him a bit with REI or just make it a bit more comfortable when we get there. I'm just getting started on this journey but am hoping to make my first deal in the next 6 months. My initial thought is LTR single family or small multi, though I'm not opposed to short or med term rentals.

My primary question has to do with LLCs.  I've seen several posts about them not being necessary at the beginning of this process.  Is that true even if you already have significant assets? My husband is a physician and we have a couple homes, stocks, other investments, etc.  I worry that a disgruntled renter could see potential deep pockets if they did their research.  Can you share some good learning resources for that aspect of things.  Is that my first step? I don't want to risk what we have built, just because I got impatient to get to retirement. 

The other overwhelming thing is just nailing down which market.  Travel isn't easy or direct for me to anywhere- though the excuse to visit somewhere warm is always tempting during the winter!! We have some family connections in Kansas City, Indianapolis, and Provo/SLC Utah which has made me look there a bit.  But I really see this as just business-  I want the best market I can get into.  Also, for those who invest OOS, do you find one market you specialize in or do you tend to bounce around and cherry pick from markets in several locations? 

My next 3 months are devoted to learning, practicing analyzing deals, etc.  So, what helped you be ready to make your first deal? I truly appreciate any thoughts and suggestions.

Best wishes, 

LaShon Evans

[Todd Anderson]

@LaShon Evans,

The question about LLC is a good one and you will get may opinions on the subject. There are definitely advantages to the liability issue when using an LLC, but there are some disadvantages as well. It may be more difficult to get financing and a good rate buying through an LLC. Many of the investors i work with start buying in their own name and then move the investments to an LLc after you acquire a few. Then they will start the process over.

As for finding a market.  I have learned to be in favor of finding the best market to invest in.  In today's world there are so many tools available to help you buying OOS.  With pictures and video that can be sent on progress, many of the investors I work with never visit the property.  this type of investing does require finding a good turnkey provider that has Boots On The Ground.  The investors that I work with find this benefit one of the most important. 

The market you are looking for should be one with strong population and job growth.  It should also be somewhere with beneficial landlord tenant law.

Best of luck in your search and let me know if i can help.