We are officially real estate investors!

Baton Rouge, LA · Member since 2016 · 13 posts · 20 votes

My brothers and I just closed on our first property this week! It's a fourplex located in Baton Rouge, LA. After deciding to move forward with real estate last year, we found BiggerPockets and started reading everything we could find. We bought books. We listened to podcasts. We started networking with other investors and real estate agents. At the end of last year we established an LLC and began looking for properties. Our first goal was 4 units by the end of 2017. Well, first goal down! Looks like we need to set a new one! Shout out to @Brandon Johnson for all of the help and advice so far! And thanks to everyone here at BP! I honestly don't think we'd be this far along without this great community.

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Kyle MccawBusiness Member

Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes

Congrats Ryan Tortorich. The first one is the hardest. Now you're addicted.

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Kyle MccawBusiness Member
Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
9y
Congrats Ryan Tortorich. The first one is the hardest. Now you're addicted.
McCaw Property Management4.4905 Reviews
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Austin Fruechting
Investor · Kansas City, MO · Member since 2017 · 791 posts · 1k+ votes
9y
@Ryan Tortorich - congrats on starting the journey!
0 Reply
Brandon Johnson
Investor · Baton Rouge, LA · Member since 2014 · 280 posts · 219 votes
9y
@Ryan Tortorich Way to take action and create your own reality!! I am super excited for you and especially glad we have another great owner in that neighborhood. Congrats on your first deal and @Kyle Mccaw is spot on; its all downstream paddling from here. I love success stories more than any other kind of story.
See you at the top!
1 Reply
Casey Bradford
Flipper/Rehabber · Baton Rouge, LA · Member since 2014 · 15 posts · 3 votes
9y
@Ryan Tortorich Congrats on the buy and meeting your 2017 goal!
0 Reply
Robert Lockwood
Investor · Greenwell Springs, LA · Member since 2015 · 28 posts · 12 votes
9y
Congrats @Ryan Tortorich! What area are you investing in? Hope your success continues!
0 Reply
Robert Leonard
Investor · Lafayette/Baton Rouge, LA · Member since 2013 · 1k+ posts · 915 votes
9y
Congratulations @Ryan Tortorich. You'll do well following @brandon
@Brandon Johnson's advice!
0 Reply
Account Closed
Rental Property Investor · Norwalk, Connecticut (CT) · Member since 2016 · 140 posts · 44 votes
9y
@Ryan Tortorich Big congrats!! I am a Baton Rouge native and have thought about investing there. The flood and lack of multis deterred me a little but would love to hear all about your deal! I just got my first property under contracts in CT where I live now. I have lots of resources in red stick. Happy to help any way I can!
1 Reply
Scott Harper
Investor · Longwood, FL · Member since 2015 · 221 posts · 130 votes
9y
Ryan, great job.
I have always bought in my name. I know many wholesalers and flippers will use an LLC. I am curious, so was this through Realtors? You wrote offer under LLC? You closed under LLC? You got either hard money or loan under LLC? I am just asking what obstacles, if any you came up against as a new investor buying within an LLC?
1 Reply
Latoya Gordon
Investor · Atlanta, GA · Member since 2015 · 42 posts · 23 votes
9y
Congrats now on to the next step you will be hooked on everything, like why did I waited so long, lol Enjoy and make smart choices realistically! Happy Happy Passive Income here we come ;-)
1 Reply
Evan Bell
Real Estate Agent · San Diego, CA · Member since 2015 · 293 posts · 109 votes
9y
I am also wondering the same thing as Scott Harper
0 Reply
Harri Smith
Walnut Creek, CA · Member since 2010 · 52 posts · 3 votes
9y
I bought the first property under LLC name, but was not able to get equity loan. My LLC has a partner and we both have good regular job. Subsequently, we bought under our own name and got equity loans without problem.
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Ryan Tortorich
OP
Baton Rouge, LA · Member since 2016 · 13 posts · 20 votes
9y
@Account Closed With three brothers, we thought it was best to use an LLC. Plus, in Louisiana, LLC fees are super cheap. We used a real estate agent and purchased the property under the LLC using a commercial loan. The loan was probably the biggest obstacle. Since we were purchasing with an LLC, we couldn't get a conventional loan. Those only work for individuals purchasing a property under their personal name. This was a bummer because we quickly learned that commercial loan terms are not nearly as good as conventional loan terms. As a result, we called a ton of local banks to find the best terms. Some didn't do commercial loans at all. Some only did commercial loans for established companies (i.e. at least 2 years old with credit history). A small number would loan to a new LLC with a personal guarantee from the owners. Basically, if the company can't pay the note, my brothers and I are personally responsible. Of the few that would loan to us, some had really strict terms. We found one that had pretty reasonable terms: 5 year fixed rate loan with a 20 year amortization at 5% interest. After 5 years, the interest rate will change to meet market rates. Since these terms aren't as good as a 30 year conventional loan, we had to be sure that the deal was good enough to still provide good returns. Fortunately, after looking for a while we found one that still gets us almost 20% cash on cash! Let me know if you have other questions. Happy to answer them if I can!
2 Reply
Kai Kopsch
Real Estate Broker · Charlotte, NC · Member since 2016 · 569 posts · 351 votes
9y
Congrats @Ryan Tortorich and to your brother.You and your brother are partners in real estate business.Its great brothers that help each other to be successful.Again congrats to the both of you.
0 Reply
Larry H.
Investor · San Antonio, TX · Member since 2016 · 90 posts · 28 votes
9y
What area/neighborhood is your property in? I am from the Baton Rouge area and also invest there.
0 Reply
Ryan Tortorich
OP
Baton Rouge, LA · Member since 2016 · 13 posts · 20 votes
9y
Larry H. King Bradford off of O'Neal
0 Reply
Tony WooldridgePro Member
Rental Property Investor · Walla Walla, WA · Member since 2016 · 480 posts · 346 votes
9y
@Ryan Tortorich, I don't have much else to say that our fellow BP colleagues haven't already covered. However, I am more than glad/happy to give credit where credit is due, CONGRATS on taking action and following through on what you set out to do!
I too am fairly new to the REI world. I am happy to announce as well that I have just closed on my 1st deal that I intend to flip. Demo starts this weekend! I too have to thank ALL of BP NATION for their help, advice and overall guidance thus far. Now the work begins, and on to the next phase in the quest for becoming a successful REI!
Once again, CONGRATS Ryan! Keep on keeping on and keep us posted of your progress as it truly helps not only me but people like you and I a few months ago. I too intend on starting a forum post about my most recent 1st purchase. Thanks for allowing me to share. Here is to wishing you a successful 2017 in your REI ventures!
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