All Forum Posts by: Alex Saleeby

Stephanie thank you for sharing your experience. I like how you structured it with lessons learned. Interesting bit about the financing as well.

Hello Han Oo . A lot of people ponder this question. If you run a search on the BP site you'll no doubt see many threads discussing the pros and cons. It's good that you're planning ahead, giving yourself time to arrive at a decision as well as improve your credit score. In a nutshell there are two schools of thought. Some will argue that it's ok to buy in your own name and get a general liability insurance policy to cover you and the properties. Others will say you ought to use a legal entity for asset protection. Generally speaking most would suggest an LLC for it's the simplest entity type to creat and keep. It would be wise obtain a GL policy for the entity and its holdings as well. The choice of using a separate entity also has implications on the type of loans that might available to you - i.e conventional residential loans (Fannie & Freddie) can commercial. Either way the lender will qualify you as a borrower, so improving you're credit rating is a plus. The alternative would be using an asset-based lender. The loan terms are not as attractive though. Think about what it is that you want to accomplish with your investing. How large of a portfolio do you plan to grow to? How will you protect your investments? Is separating your investments from personal assets important to you? As you build your team of advisors consult with your CPA, real estate attorney, insurance agent and lender about this topic to help guide you to a decision that's right for you. Good investing.

Yes I am doing exactly that. Great way to self-fund BRRRR deals

Matt Roberts for what we do small banks and credit unions are the way to go. Depending on if you're refinancing in your own name or an LLC you may end up needing commercial financing. Terms and conditions vary so shop around. I'm using an LLC and financing through a credit union's commercial lending department. Personal service, competitive rates, reasonable terms. As you build the relationship and track records, it gets easier. Try getting all that from a big bank. Not going to happen. Good luck.

Iman Yu congrats on the BRRRR deal. Thanks for sharing your experience with such detail.

Darrick Reed I've had good luck doing business with the commercial lending dept at a local credit union with reasonable rates and terms. Look for a community business bank or a credit union I your area that has a business lending division. Ditto on the GL insurance policy mentioned by other. Good luck.

@Tony Nguyen I would say 6-12 months of operating expenses and mortgage payments would be reasonable. 

Your mortgages lender(s) if local would have a better feel for what's reasonable for your market and what has worked for other MF investors in the past. 

Some fantastic deal there Tony Nguyen Impressive!! I'm thinking "rainy day reserved" while reading this post. In other words, while you're on a roll accumulating properties and growing your net worth, what you're doing is great so kind as you factor in some cash reserves for weather any negative events that might come up. Keeps us posed on your progress. Great job!

Chris Luksha besides more detailed info on active listings, the MLS is a great source of recent sales for comps and ARV estimates. It's also a good source of info about the general health of the market and trends

Another option is to go the more traditional route using a real estate agent and searching for a fixer upper with upside pore too that is in good enough condition to qualify for traditional financing. You get to purchase with minimal cash out of pocket and be able to do the upgrades needed to increase value and build some equity.