All Forum Posts by: Anthony King

@Da'Michael Horne IMO - You need to just drop the whole idea of setting up LLC's at this stage. I agree that you have one too many LLC's already. Just focus on buying a 1-4 unit property using a conventional mortgage and when you purchase insurance for the property include a $1,000,000 umbrella policy. It's that simple. If you have $60k toward DP, closing, and reserves, the most home you can afford right now is about a $150-$250k, 1-4 unit. This also depends heavily on your DTI, so let's hope you're below 15-20%. You're putting the cart before the horse talking about LLC's right now.

If you have an unrelated partner that you want to make this first purchase with, then MAYBE, you should consider an LLC, or have a lawyer draw up a simple contract defining your business partnership between the two of you. Lenders will not even finance your newly established LLC with no income or assets so the only thing you can do is get a mortgage in your personal name with the amount of cash you currently have.

Bottom line - mortgage in your name, umbrella policy, forget the LLC.

@Blake Ramsey You'll never be completely ready, all you can be is prepared. It's an ever-changing game and eachnsotuation is completely unique. You're dealing with people, not just an asset, which, in and of itself is completely unique. Just make sure you have a solid "core 4" that you trust and are looking out for you.

First I found an awesome realtor who put up with all of my rookie questions, mistakes, and ignorance. I found him by just inquiring on a fourplex on zillow and while I didn't buy that one, he helped me buy two duplexes and two triplexes just last year. He set me up with a few solid lenders, an awesome insurance agent, a good property manager, and a reliable contractor. Just making that first inquiry on zillow asking for a rent roll, seller disclosure and owner expenses turned out to be the push I needed to make the jump from analysis paralysis to making my first investment purchase (I already had 2 single family homes I lived in then rented out after moving). It snowballed after that and I now have 13 doors.

JUST JUMP!!!

@Josh Calcanis I've only used conventional Fannie/Freddie loans on my small multifamilies, but I'm almost maxed out with those. Forgive my ignorance, but how do you distinguish a DSCR lender from a commercial lender? What tells you a lender is DSCR?

@Jared Smith I closed on one conventional mortgage (duplex) with "Lender A" while I was working toward closing on two other properties (2 triplexes) with "Lender B" in Oct/Nov. Just let both lenders know what you're doing.

@Alice Huang Are you sure about those numbers? You can get it for for $675k, put $20k into one unit, and all of a sudden it's worth $950k? And are you sure you can raise your rents from $860/unit to $1285/unit, a 35% increase without doing anything to those units? What class neighborhood is this? Maybe I'm wrong, but the seller's agent is either incompetent, or you need to double check your numbers.