All Forum Posts by: Andrew Freed

@Kwok Wong - All great questions! Regarding closing under a LLC, you can establish a LLC once you have a property under contract if that is prerogative. Normally, I do not establish LLCs until I have the property under contract and I am deep into the closing process.

Regarding if you need a LLC, it all depends on your risk tolerance. If it's a residential property, normally the loan will be more expensive to close directly under a LLC vs. your personal name hence the cost of debt tends to be higher. You can always move it under a LLC once you close as well.

Additionally, you always have the option of loading up on a ton of insurance and putting it under your name. Typically, you can purchase an umbrella policy for as little as $300-600 annually that offers a million dollars of liability coverage. Combined with your homeowners insurance, you can have as much as $1.5 to $2 mil of liability coverage for a property. From a financial perspective, loading up on insurance is more adventengeous than a LLC because if a claim arises, I'd rather file an insurance claim that give up the equity I built in a lawsuit. You of course can utilize both strategies however the adminstrative costs associated with owning the property becomes higher. Just a few thoughts, good luck!

@Ruben J Munoz - I specialize in the Worcester market, I'm an investor focused agent and own a ton of property out here. Happy to share some contacts if you have specific needs. Feel free to DM me. 

@Brandon Martinez - To reiterate a lot of people's points, I am still finding cash flowing properties in Western Mass. I invest regularly in Worcester, Providence, and towns outside of Worcester. I normally find properties close to the 1% once stabalized.

More or less, I recommend targeting tertiary markets that are 45 min to an hour outside of Boston with a large concentration of multifamily. It is easier to find a multifamily if there are a lot of that asset class in stock in the area. Best of luck on your search! 

@Nicolas Dupuis - She need two years of income / tax history to utilize income from a new job. It is typical though. I've even seen lenders utilize college as two years of work history instead of taxes filed so you never know until you apply and put the cards on the table. I see you are looking to invest around Worcester, that is my market. I did exactly what you are looking to do. Happy to provide a few lenders or contractors if you need any support. Let me know if I can help in any way. 

@Hong Zhu - I'm not an airbnb investor, I do buy and hold. Nonetheless the question is, will that bad review hurt your revenue goals more than comping their stay? If the answer is yes, I'd just give them the refund, not think about it any further and move on with your life. I think you can use this as a lesson learned to not accept anyone without reviews in the past. You can fight this, turn it into a big deal, go to Airbnb and complain but at the end of the day, is it worth your time or frustration? I would assume not but to each their own. 

@Cody Faucher - Just so you are aware, $200 above your mortgage is not cash flow. It cost money to own a house and people normally allocate a percentage of the revenue towards repair, capex, vacancy and property management. If you take that into consideration, you are losing money on the property. Do you think you can rent it for higher? Did you check out what other properties like yours are selling for in the area?

Regarding the $80K, if it's your primary residence that could be considered tax free money. It all depends on what you plan on doing with the $80K on whether its a good opportunity or not. Lastly, it cost money to sell real estate, typically 6-8% of the purchase price in transaction costs. Definitely take that into the equation when determining how much money you will walk away with. Best of luck! 

@Evelin Negrete - If you don't want to manage tenant communications, hire a virtual assistant for $5-7 dollars an hour and have them take tenant inquires. Then provide them with a preferred vendor list, set up electronic locks and make the landlording a little more automated. They can communicate issues to you and source contractors to fix it. 

Given this is your first property, the overhead might not make sense, nonetheless this sounds more like a system implementation issue and less a challenging tenant. 

@Ike Okwerekwu - Good question! I'm sure BP will have some good insights, nonetheless I also recommend going on facebook on local investor groups and asking them there. Also, if you know any successful local investors in Atlanta, that might be a good place to start as well. Lastly, I recommend attending some local real estate meetups and inquiring there. These are some strategies that helped me find some really good local lending partners. Good luck! 

@Gregory Herbert - Good question! The offer deadline simply means the deadline the agent set for all offers so they can present it to the seller. Usually if you miss the deadline, you miss out on your opportunity to have the offer presented to the seller. 

Additionally, I have seen people set offer deadlines and accept offers before the deadline hence I think it is best practice to get an offer in as soon as possible, call the agent before the deadline to see where offers are at, and adjust as you see fit. However if you miss the deadline, there is a good chance you will miss out on the opportunity unless they have no offers. 

@Btz Thibodeau - Welcome, Worcester is a great market. I specialize in this market so if you have any questions, always feel free to reach out. I also host a local real estate meetup in Worcester, it's a fantastic opportunity to meet other investors, lenders, contractors and potentially find deals. Good luck with your flipping endeavors.