All Forum Posts by: David Cianci

Forming an LLC before your first real estate purchase, especially a house hack, is probably not necessary unless you already have significant assets to protect. Even if using an LLC banks will underwrite you and your financial situation and require a personal guarantee.

There's no direct tax benefit from buying under an LLC that would outweigh its annual costs for newcomers. FHA loans and similar first-time buyer programs offer better terms than what you'd likely get with an LLC, making them a smarter choice for your first investment, if house hacking.

If you decide to move your property into an LLC later, it's possible through a quit claim deed, but it's crucial to consult an attorney to navigate the mortgage implications and legalities correctly. Note attorneys get paid to tell you the worst case so keep in mind. Starting without an LLC allows you to leverage more accessible financing options, with the flexibility to switch to an LLC structure when it becomes beneficial.

Hey Ryan, I appreciate your input!

0 Votes

Quote from @Todd Rasmussen:

@David Cianci

It's a distraction from your first deal. Don't worry about it. We have quitclaimed property into llcs and left loans in our personal names without issue. If the mortgage is getting paid, usually banks won't worry about it. Usually creating a llc has net zero or an increase in overall taxes paid, so I don't know what benefit you are imagining from creating one. Have a substantial liability insurance amount and worry about an llc down the road while you are saving up to buy another.

Hi Todd, I appreciate your input!

1 Vote

Quote from @Jon Puente:

Hey David,

No you shouldn't. You dont really have any "liability" with 1 property. Just buy a property in your personal name and learn the game first.

Thank you for your input!

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Quote from @Adam M.:

For a house hack I would not recommend it-- especially if you want to leverage favorable financing options to mitigate larger down payments, I would work on taking it down as an individual.

Small multifamily/partner deals would definitely warrant an LLC! They can offer some asset protection benefits, but it does come with its own set of considerations, like you mentioned with financing and tax implications (I'm not an attorney and this is not legal advice!)

Feel free to bounce ideas around here—we've got a supportive community ready to help out. My first deal was a house hack on a duplex and I did that personally, had no issues at all. If anything I was actually glad that I did it individually as I wrote off the depreciation on my personal taxes. Everything after was through LLCs.

Hope this helps somewhat!

Thank you for your input!

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Hello, curious to ask if I should create an LLC before I purchase a real estate property.

I will most likely either buy a house hack, small multifamily, or partner deal with my first purchase.

I understand that banks do not like lending to LLC's to start off so maybe I would have to take some personal liability to begin with or get an umbrella insurance policy which I have heard could be an option.

I have also seen that it can be complicated to move a property into an LLC when the property was purchased before the creation of the LLC in terms of the mortgage terms.

I am curious if I could benefit from the taxes benefits from forming an LLC right off the bat or if the annual costs would outweigh them to begin with.

Wanted to reach out to the community and make sure it wasn't a necessity to create an LLC as soon as possible because I would like to make sure I hedge my risk as much as possible in case an emergency would occur at or with a property I purchased and own outright, thanks.

9 Votes

Hello All,

Come this May, I will be graduating from University and in search for potential job opportunities with a real estate syndication to learn and operate the business in&out. I am interested in working in a multitude of locations. I am open to equity, debt, or hybrid syndications. If anyone can point me in the right direction to companies they recommend I look into applying to or if you currently run a syndication and interested in hiring , please send me a message!

Thanks,

David

1 Vote

Quote from @Nicholas L.:

@David Cianci

if you haven't already find the local REIA meetups, go in person, ask them.

Will do, I appreciate your input Nicholas!

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Hi everyone,

My name is David Cianci. I am currently a senior at James Madison University and planning to graduate in May 2024.

In my senior seminar class, one of our assignments is to identify a mentor to meet with in person or virtually 4 times this semester in an industry we are interested in pursuing upon graduation.

I would love to connect with a bigger pockets member that has experience in personal real estate investing for themselves or who has work experience in a specific field that has allowed other people to achieve financial independence through real estate investing.

I am eager to begin my real estate investing journey and connect with fellow like minded individuals who share a passion for the industry!

Please send me a direct message if you are interested, thank you.

0 Votes

Richmond, Virginia

Hi everyone,

My name is David Cianci. I am currently a senior at James Madison University and planning to graduate in May 2024.

In my senior seminar class, one of our assignments is to identify a mentor to meet with in person or virtually 4 times this semester in an industry we are interested in pursuing upon graduation.

I am eager to begin my real estate investing journey and connect with fellow like minded individuals who share a passion for the industry!

Please send me a direct message if you are interested, thank you.

0 Votes

Hi everyone,

My name is David Cianci. I am currently a senior at James Madison University and planning to graduate in May 2024.

In my senior seminar class, one of our assignments is to identify a mentor to meet with in person or virtually 4 times this semester in an industry we are interested in pursuing upon graduation.

I am eager to begin my real estate investing journey and connect with fellow like minded individuals who share a passion for the industry!

Please send me a direct message if you are interested, thank you.

0 Votes

Richmond, Virginia

All Forum Posts by: David Cianci

David Cianci has started 12 posts and replied 38 times.

Post: Should I create an LLC before I buy my first property?

Post: Should I create an LLC before I buy my first property?

Post: Should I create an LLC before I buy my first property?

Post: Should I create an LLC before I buy my first property?

Post: Should I create an LLC before I buy my first property?

Post: Work Opportunities for Multi Family Syndications

Post: University mentorship assignment

Post: University mentorship assignment

Post: University mentorship assignment

Post: University mentorship assignment