Newber in Orlando

[Sophiep To]

Hello,

I am new to real estate investing. I found my first duplex. I am still trying to piece together the law side of it versus the financing side. I am approved for an FHA loan and looking for the next steps. I read I should get a trust, an LLC, a CPA, lawyer, lender, broker (which I'm confused if they are not related to the lender?), and a realtor. I guess I am trying to figure out what is best for each of the items listed. For example, a trust - what type of trust?; LLC - what type? I heard I should get a Delaware LLC. etc. I also don't know much about how to handle rents... which type of bank accounts, etc. Any feedback/advice would be great!

[John Kent]

@Sophiep To if you are purchasing with an FHA loan you will have to take title to the property in your name and live in the property for 12 months minimum. You will not need a Trust or LLC when using an FHA loan.

This is a simple transaction where you are unlikely to need a lawyer. The title company can handle the closing and title search/insurance aspects of the purchase.

A CPA is helpful but since the income is only reported on your personal tax return a tax preparer familiar with regular rental income and depreciation will work. 

Having a property manager handle rent collection and tenant acquisition may work best for you starting out. Once you have a grasp on tenant / landlord laws and best practices you may decide to self manage or that you prefer not to manage your own rentals. 

By broker, you probably mean real estate buyer's agent to assist you with the purchase transaction. 

By lender, you will consider either a direct lender or mortgage broker to originate the FHA loan that you will to complete the purchase.