All Forum Posts by: Colin K.

@Anthony King Thanks for your reply. I was under the impression the quit claim procedure would almost certainly be called due by the lender so good to know that if you talk with them there is a solid chance that it will not happen. That really seems to be the only hurdle in that strategy. Thanks!

Wanted to get people's opinions and perhaps personal anecdotes on how they structured and financed deals with multiple investors. I am looking to purchase my second property and have multiple people who would be very willing to invest and have some equity. In a legal sense, forming an LLC seems like the best structure. I would be the managing partner, handling the day-to-day and also have the most equity involved while of course limiting my personal liability and all the other advantages that come with an LLC. However, my problem seems to be financing. If you want to purchase a property with an LLC, you will have to most certainty get a commercial mortgage which will increase my rates. It increases rates to a degree that I don't know if its truly worth it or if I would even qualify for a commercial mortgage with a newly formed LLC. Quit claim deed seems like a useless solution that people throw around since the due on sale clause would just be put in effect making the whole mortgage due. So my question is, from either people's wisdom or experience, how have/would you advise on this situation? Is the extra rate in the mortgage really worth it going for commercial mortgage? Do I just do everything in my name and then have a separate written agreement between my friends/family/other investors to how the equity will be determined? How have you handled or advise handling a situation of multiple investors involving a deal that will need financing? Happy to read others threads if this has been answered before. Thanks

Thank you all for the advice! @Matthew Paul @Tim Robinson @Courtney Rollins @Joe Norman

I've been looking into getting into purchasing rental properties in Baltimore recently but have found that there are some hurdles special to Baltimore. I have seen on the BP forums that the lead paint inspections that the city forces are a real hassle. In addition, late payments seem to not only be more common but with being a tenant friendly city, evictions are much harder to accomplish. Lastly, larger economic trends show people are leaving the city which obviously makes me question if I will always be able to fill my rental properties. There seem to be some solid deals in the city that are in my pay range and I know some areas of the city already so I want to be positive and want this to work but want the advice of people in REI in Baltimore about the pro's and con's to see in the negatives are truly as large as I may fear. Thanks!

-Colin

I still have not pulled the trigger on anything yet. A big part is that I don't know what location to purchase. There are virtually no rental properties in my direct area so I am looking out of state, anywhere from the northeast to florida. Second is that with just graduating college, I am still in the job search and am nervous that getting a loan will be hard even though I have enough capital for a large downpayment. Third is being concerned that once I purchase the property, I won't be able to rent it out quickly (this is linked with location too). 

Thank you @Ozzy Sirimsi @Mamadou Diallo and @Benjamin Meyer !! I appreciate it

Hello,

My name is Colin and I am a recent college graduate and have a strong desire to start to invest in real estate early. I went to college in Baltimore and have seen the real estate potential there and the low prices which are enticing to someone in my position. I am seeking advice from people who either are in the Baltimore real estate scene or anyone else who could help. For purchasing, I would be looking at row homes that are $55k or less and preferably in decent condition that don't need major repairs, as I have seen some do exist on sites like Zillow. Should I stay away from foreclosure auctions even though there are dozens of them in Baltimore? I know the basic neighborhoods of Baltimore but how do I know if a property is in a decent part of the city, as I know Baltimore in particular changes quickly from street to street. Are there certain banks you have dealt with in the area that have been advantageous for loans and mortgages? Is there anything specifically I should know about row homes that differ from traditional single or multi family properties? Any and all advice would be extremely helpful and appreciated as I am learning quickly but thoroughly. Thank you!