All Forum Posts by: Chris K.

@Jonathan Ludizaca

It really depends on the market. If you are in the Wilkes-Barre/Scranton market, you used to be able to get duplexes for $50k to $100k and make it cash flow quickly. Last time I checked, the prices did go up. But I think they may still beat SFR in terms of cash flow there.

What you really need to think about is the exit. How long are you going to own it and when will you try to sell it? A lot of your returns come at the time of sale. 

Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Samuel Kim

Short answer is "yes." I have worked with many medical professionals where they adopted the basic strategy you are trying to use. Really the main challenge is going to be making sure that your wife understands what she needs to do to document her hours and activities. As others said, becoming a licensed realtor is helpful as when it comes to filling up the hours. 

Just note that you guys may end up in what I call the "1031 exchange until you both die" cycle. It's a way many medical professional + spouse combo have saved a lot of money on taxes. But it is a serious commitment. 

But do talk to a CPA/tax professional who has done this. There will likely be some hand holding in the beginning. Also assuming your practice is going well, consider talking to asset protection attorneys. Depending on your practice size and income level, you may just want to start with maxing out 401k and also adopting a defined benefit plan before committing to becoming a lifelong real estate investor.  

Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Diego L.

That's a loaded question that is difficult to answer on a public forum. If you are only looking to create a trust to avoid probate, you could probably hire an attorney to make a revocable trust. But there are bunch of factors to consider there. 

I would just add that probate isn't really a painful process in most situations. I would probably work with an attorney in North Carolina (or wherever you live) to do some estate planning since you do have young kids. That may or may not involve a trust. 

Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Audrey Fisch

@Chris Seveney is correct. But ultimately it depends on the comfort level of the attorney in question. Feel free to shoot a PM and I can try to see if I can make an introduction.

Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

Aside from what everyone else wrote, note that adding units require various steps that you may not have considered (e.g., adding a new street address with USPS, etc.). You may want to work with an experienced contractor and/or other experts who have done this in the past.

Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Bart Tilly

There are various "standard" agreements available in the marketplace (e.g. AIA, ConsensusDOCS, etc.). Assuming you have an architect, my guess is that they will lean towards using the AIA docs. They will likely have the ability to generate them.

Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information. 

@Anthony Vaganos

I haven't checked this in a long time. But either Freddie or Fannie (or maybe both?) issued guidance saying that you can use LLCs if you get approved to do so. I want to say the guidance was issued around 2021. Check with your lender to make sure you heard it correctly. 

Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Arif Gungorur

Make sure you check any HOA or development restrictions. Had a client who thought he had a deal of a lifetime. He checked everything but the HOA/development restrictions. Long story short, he ended up buying a worthless piece of land.

Not saying this is always the case. But properties typically end up in the repository list for a reason. Finding a deal on that list is challenging. 

Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Ed Hoffman

You can do it by registering the NY LLC in PA. In my experience, however, I don't think there are much benefit from doing this versus just opening a new LLC for your PA investments. I guess you might save a few hundred dollars. But it's not a zero-cost ordeal.

Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@John C.

You really need to work with a lawyer on this. Part of what you are describing is traditional seller finance. At your scale, you would likely need to go full steam ahead and get the required licenses. Part of what you are describing is what they call an installment land contract. But that has its own issues as well including having to do a hybrid foreclosure/ejectment action. 

In my experience, most people are better off just trying to sell their portfolio and buy a larger asset. But that is more of a business decision.  

Disclaimer: While I’m a licensed attorney, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.