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All Forum Posts by: Arron Paulino

Arron Paulino has started 53 posts and replied 214 times.

Post: Fix and Flip Projects - Property Management

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Drew Sygit:

@Arron Paulino either can handle, but go with who you trust the most!


 Sounds good, thank you! I think I mostly ask due to permits and what not, but I think my GC should be able to handle all of that.

Post: LLC Creation For Rental Properties

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Olia Fogel:

@Arron Paulino Series LLC is a type of entity that basically has a parent-child structure, where just the parent entity is filed with the state and is assigned an EIN. Then for each property a separate "child series" is created. Individual series are completely isolated from each other from liability standpoint. With one property per child series, even if a series is sued successfully, it will not affect your other assets.

You can only set up the Series LLC in a state that allows the in-state formation of Series LLCs, even though all states recognize a Series LLC. You can also hold properties all over the US with this entity. I usually recommend setting it up in Texas or Wyoming.

The best course of action is to seek the guidance of an attorney with experience in entity formation, and ideally, experience with Series LLC in particular.


 Thank you for the clarification! This definitely sounds like something worth pursuing once I get deeper into real estate investing with more properties. Have you established this in your own portfolio?

Post: Fix and Flip Projects - Property Management

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83

Does an out of state property you plan to fix and flip need to have property management in place or will a trusted GC suffice? Look forward to hearing from you all!

Post: Finding Funding For Deals in Detroit

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Jim Wellington:
Quote from @Drew Sygit:

@Arron Paulino connect with @Jim Wellington

Check out this info also:

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse

(BP search feature can be problematic, so we’ve also added links @ our website under View Cities & Neighborhoods We Service)

Doubt you'll find this much info for any other market in the country. So, why would you invest remotely anywhere else?

Please send us any feedback via email, as we do not use the DM feature here.
Also, if you like our response, please don’t be shy about giving us a vote😊

@Arron Paulino  I’d be happy to schedule a call to discuss how we can help fund your deals  my partner company Level Up Capital providers asset based dscr loans  


 Sounds like a plan! I'd love to connect.

Post: Finding Funding For Deals in Detroit

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Drew Sygit:

@Arron Paulino connect with @Jim Wellington

Check out this info also:

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse

(BP search feature can be problematic, so we’ve also added links @ our website under View Cities & Neighborhoods We Service)

Doubt you'll find this much info for any other market in the country. So, why would you invest remotely anywhere else?

Please send us any feedback via email, as we do not use the DM feature here.
Also, if you like our response, please don’t be shy about giving us a vote😊


 Awesome, I'll check it out!

Post: LLC Creation For Rental Properties

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Olia Fogel:

I agree with Richard, looking into a Series LLC as a holding company may be a great idea in your case.


 Sounds good! Do you have any suggestions on where to get started for this?

Post: LLC Creation For Rental Properties

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Richard Bechtol:

Hi Arron,

I think that it might be a good idea to look into an LLC. One thing to remember is that an LLC is for liability protection and as you scale you increase your risk level. You can look into a Series LLC as well to help in terms of scaling and not having to create a bunch of new LLCs each time you acquire a property.


 Hi Richard,

Thanks for the response! What is a Series LLC? Yeah, I just want to keep it simple and have less paperwork to deal with. When do you suggest is a good time to think about having an LLC in terms of the number of properties/units?

Post: LLC Creation For Rental Properties

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Dani Beit-Or:

How many mortgages do you have? Are you close to 10?

Are you married and does your spouse work and can get mortgages too?

From my ~20 years of experience—here are few things you can consider:

- There are options to mortgage more than 10 properties, it will mean getting a bit creative. 

- Consider buying 4-plexes, it's almost like buying 4 houses in one transaction and in one mortgage. 

- If you have close to 10 already (or when you have ) you could be able to bundle all or some under an blanket mortgage and releasing the # of mortgages you have.  


 I appreciate the response, Dani!

I am thinking of doing that once I reach 10 to free myself up. I currently have 7 so 3 more spots are available. I am interested in 4-plexes as that is the maximum number allowed to still be eligible. However, I'm unsure where to look regarding finding a market and good numbers.

DO you have any recommended lenders who can do the blanket mortgage?

Post: LLC Creation For Rental Properties

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83

Hello,

I am wondering if I need to create an LLC or keep adding rental properties under my name. My worry is that when I reach the maximum of Freddie and Fannie's conventional financing I will need to either look elsewhere for good terms for funding or free myself up somehow. Not sure if I need to get an LLC I just want to prepare myself for when the max happens. Maybe I will need to get one portfolio loan to group up all of the properties. I am looking at expanding into other markets. Does an LLC need to be in the state where the properties are located? Would I need multiple LLCs? Looking forward to hearing from the community!

Post: Finding Funding For Deals in Detroit

Arron PaulinoPosted
  • Rental Property Investor
  • South San Francisco, CA
  • Posts 229
  • Votes 83
Quote from @Travis Biziorek:

Hey Arron, speaking as a fellow Californian that recently spent 5 years on the ground in Detroit... I would not recommend trying to BRRRR in that market.

Detroit is more of a cash flow market, and while I've personally done several successful BRRRR's there it's far from easy. It's also time and capital intensive and usually best executed in a rising market.

The best shot at doing a BRRRR is to find off-market deals that are priced below market value. Easier said than done, but I can help on that front. My partner and I did over 200 transactions like that last year. That said, these are all cash deals.

What exactly are you trying to accomplish? Happy to chat if you think it makes sense.

Thanks for the response, Travis! I appreciate the feedback on Detroit.

I am trying to continue growing my rental portfolio by expanding into new markets where I will be able to cash flow and grow equity in these properties. I do perform the BRRRR all cash and have been happy with the process. I'd love to continue to chat more about your thoughts and what you've been able to accomplish.