All Forum Posts by: Adam Frantz

My wife and I are looking to invest in small multifamily housing in Milwaukee, WI. We are finding a lot of properties (especially duplexes), but the thought occurred to me, are tenants paying their rents with eviction moratoriums in place around the country? Would it be wise for me to wait to invest here until eviction moratoriums are gone? Is that why there are so many on the market? Thanks in advance for your responses. 

@Cameron Tope

But doesn't it just become a chicken and egg scenario? I can't get two years of tax returns from an LLC unless I start one, and I may have trouble getting loans for the LLC that I started which keeps me from buying houses. Do you normally advise your clients to start on their own then transfer their properties into an LLC later?

@Jody Sperling

If the LLC starts with $100k of seed money to buy property, doesn't that work the same? Or does it need to be generating its own money despite the quantity? Thanks for the response.

@Susan Maneck

Thanks Susan, that is very helpful. I have heard from my aunt who owns two homes there that appreciation isn't very good but if I can get the home paid off by my tenants, the houses should act as their own little nest eggs when I go to sell. I will be sure to watch out for foundation and roof issues.

@Susan Maneck

I have an aunt who lives in Hattiesburg, so I have been looking around there.

@Cherie Gatling

Thank you so much!

@Joseph Schweizer

I am in the middle of reading David Greene's book now and have been voraciously plowing through tons of others in preparation for my first move. I appreciate the words of encouragement and congratulations on your first property!

Hello All,

Thanks for letting my wife and I be a part of your community. I am Adam and I brew beer for a living. My wife and I have just done a cash out refi of our house in Shoreline, WA to get seed money to buy our first investment property. Our area is too expensive for us currently so we are looking to invest in buy and hold properties out of state. Currently we are looking all over the country but mainly where we have family members or friends who could ease our transition into REI. We are looking around in Mississippi and Alabama right now.

Our goal is to buy enough properties that we can slowly level up to larger commercial properties that can provide enough cashflow and appreciation to provide retirement income (we are each 40) in the long term and make the job insecurity of working a W2 (which we want to continue working) more secure with a side income in the short term.

I know that there have been a lot of posts about whether or not to use an LLC or not for REI. This is not a post about that. We have settled on doing an LLC. However, I have heard a few times on the podcast and in books that banks prefer to loan to individuals rather than LLC's in the beginning because the LLC has not yet established cashflow. So, this may make finding a lender a little more challenging that if we just found one for ourselves without our LLC.

So, my question is, if we transfer money from our refinance into our newly formed LLC, would that make our LLC more attractive to a lender for a first time REI investment? We would prefer not to risk the bank calling on our loan by buying properties in our name and transferring them into the LLC from the Due on Sale clause.

Thanks

Thanks Basit. So what I pay myself from these accounts in terms of cashflow and accrued interest is taxable as income but the money that remains in the accounts that is meant for reserves is not, if I am understanding you correctly.