All Forum Posts by: Adam Bontrager

@Christine Arroyo welcome to BP.  You'll find an abundance of resources and great information here.

Do you have any specific areas you're looking at?

Please contact me if I can be of any assistance.  I'd be happy to help.

@Matt R.

Anytime you purchase an actual physical property/asset, it's going to be more hands on than a REIT. I would venture to say that most "turnkey" providers really don't provide the level of service required to qualify as a passive investment. With that said, though, there are TRUE turnkey companies that do a really good job of providing hands-off rental investments.

TRUE turnkey providers know how to make the investment process as easy and hands-off as possible.  Buying from a company the provides TRUE turnkey service means that the property is already tenanted and cash flowing, all maintenance and management processes are already in place, they pay the bills and send you the cash flow each month.  Investors who partner with these companies will discover that the amount of ongoing time or effort required from the investor is minimal.  For investors that are out of state or busy with other interests, it's the perfect way to get into real estate without the hassle and headache.

Congrats!  Sounds like you've started getting your systems in place.  That's the key to scaling your business.

@Jason Carter

LLCs definitely complicate things for newer investors.  My advice to most investors is to put their first few properties in their personal name.  It's much easier to get financing for properties in your personal name (if you can show income, anyway).

You're using these LLCs to protect yourself and your assets so generally when you're just starting out and don't have a lot of assets, starting LLCs probably shouldn't be your first priority.  As you build assets, you'll definitely want to look into putting your properties into LLCs.  Essentially, at the beginning of your investing career, your exposure is relatively low and therefore the benefits of putting properties in your own name will likely outweigh the liability protection the LLCs give you.

As always though, it's best to consult with an attorney and CPA who can advise on your specific situation.

Hello @Mahesh Hotchandaniand welcome to BiggerPockets!  There are a ton of resources on here that you will find to be very valuable as you're starting out.

What markets are you currently looking at?  Are you looking at out of state turnkey properties or what is your strategy?

Feel free to reach out to me with any questions.  I'll be happy to help in any way I can.

One account should be fine.  You can keep all security deposits in the same account.  Just make sure to keep a record so that you know the amount of each tenant's deposit.  

As someone already suggested, with just 3 tenants, an excel spreadsheet should do the trick.  As you add more units though, you will likely want to keep track of this using some sort of accounting software.  There are accounting software systems out there geared specifically to property management companies.  This will probably be ideal for you as these systems generally allow you to track the portfolio as a whole but also look at the individual units.

Good advice @William Hull

I think many of the Midwest cities are street to street.  There's often good cash flow in these cities but you do need to understand or work with someone who understands the city.  Doing your research and working with a good team are the two best ways to ensure your success.

We typically include a separate clause in the lease agreement that specifies the monthly amount the tenant will be responsible for.  The amount is usually determined by the number of tenants moving in (as indicated on the rental application).  For example, if we know 1 unit will have only 2 tenants, we may charge them $30 but the 2nd unit will be charged $60 because there are 4 tenants moving in.  It's not foolproof but it keeps the water/sewer payments separate from the actual rent charge and allows us to split up the water/sewer bill as fairly as possibly.

Welcome to BP!  

Real estate is definitely a good way to reduce your tax liability.  

Feel free to reach out to me if I can be of any assistance.

@Rob Hoffman

Welcome to BiggerPockets!  BP contains a wealth of knowledge that will help you be successful in your investing endeavors.  

I work with a lot of investors on the West Coast who love my market (Cleveland, OH) because of the reasonable home prices and the great returns.  Turnkey sounds like it would be a great fit for you.  These properties are already rented with property management in place and will cash flow from day one.  You'll also have access to a great local team of experienced real estate professionals that can help you reach your real estate goals.

Check out this article on how millennials are moving into Cleveland -http://www.cleveland.com/top-5/2016/01/millennials...

Please feel free to reach out to me.  I'd love to see how we can help you reach your real estate goals.