All Forum Posts by: Reginald Collier

So I just opened 2 brand new separate LLC's recently.

Company A, and Company B

I applied at WF for a business line of credit for Company A, and was approved for $25K(based on personal credit score/income)

I went to a different bank(AFCU) for Company B(credit union) and they said that the most I could get for a new business in $10K(their policy on new businesses...I didn't apply yet)

The question is......Can/Should I go back to WF and apply for a different line for Company B and potentially get $25K for Company B as well?

They will both be a hard inquiry on my Personal account..........but will they say something like....."We seen that you just applied for a line for Company A, so we can't give you as much now"..............Or will they both be based on their own merits. help.

thx

So I just opened 2 brand new separate LLC's recently.

Company A, and Company B

I applied at WF for a business line of credit for Company A, and was approved for $25K(based on personal credit score/income)

I went to a different bank for Company B(credit union) and they said that the most I could get for a new business in $10K(their policy on new businesses...I didn't apply yet)

The question is......Can/Should I go back to WF and apply for a different line for Company B and potentially get $25K for Company B as well?

They will both be a hard inquiry on my Personal account..........but will they say something like....."We seen that you just applied for a line for Company A, so we can't give you as much now"..............Or will they both be based on their own merits.  help.

thx

 I will talk with them and seek out a CPA as well.   U da man!

Duly noted.  Thank you sir Tyler the Creator. lol

@Tyler Gibson I may have an option for a Line of Credit of $30K plus eventually. So using that wouldn't be a loan and effect the DTI until after the fact. So how long is it typically for "seasoning" before I can pull it out again?

@Frank Patalano

Thanks again.   What website is the RI property on(non-turnkey).   I think the main reason i'm focusing on turnkey, is because of the services they provide while I work my FT job.   The research, vetting tenants, property management, repairs already done, etc. is attractive to a 1st time Rental investor.  Sounds like it might be worth the extra $100/month or so.  Sounds like a "quicker" process too.    But that may all pivot on whether I could eventually Refinance and pull the money back out to do it again.   The whole turnkey thought is just revealing my fear's of doing it alone.  Climbing out of poverty to get to this point, makes me want to tip toe into this without a disaster sending me back to square one.   So turnkeys seem to add a little more security and peace of mind, knowing  that people that know better than me, did all the hard work for me.

And what did you mean by "maintaining the LLC"? What costs are involved with that outside of initially setting it up, and tax time issues?

side note:  If i pay my debt down, I may be able to qualify for a $30K+ Line of credit from my bank which could be used for down payments until they the holding time is satisfied.   

(you are the man for answering everyone's questions like this, btw)  It is helping me mentally move forward a lot!

@Frank Patalano I appreciate the reply.   Thanks for answering the specific questions.

My main focus is to attain the cash flow to retire early.   Who better to ask than the cash flow king.

I currently have about 10K in credit card debt i'm trying to clear.  I also have a personal line of credit of $15K avail(5K balance) that I have been using to accelerate my debt elimination.(eliminated almost $20K in debt since March)

So i don't won't have the 25% down payment anytime soon unless I do rental properties in the $40-$70K range.

My additional questions to you is, how much Cash Flow can I typically expect from a turnkey vs doing it on my own?  I understand that every deal is different.....I'm just looking for typical ballpark numbers.   are we talking $100-$400(max monthly turnkey)  and maybe an additional $100-$200/month by doing it on my own?

I constantly get bombarded with mail offering $30-$50K personal loan options. Could/Should I use this for down payments? And would the bank use this against my DTI, even though the money is sitting in the bank? I would Pay the loan off right away if the Rental Property lets me pull all/most of the equity back out.(after the down payment) to pay off the loan.

Can you even pull money out of a turnkey property?( I hear they take a portion of the equity sometimes?)

Thx again.

@Frank Patalano

Living in NJ makes me want to invest out of state.(property taxes) Delaware and Philly are nearby options.

Mentally blocked by:

Analysis paralysis

Considering setting up a Series LLC with Delaware so close.

Considering if I even need a LLC to begin.

Considering a turnkey property as my first(name a few good companies)

Wondering how much money I need in the bank(for reserves and loan requirements)

Need to talk with a CPA to see if it's beneficial to setup an LLC or not(tax benefit wise)

And many more mental blocks.

Help!

@Natalie Kolodij

Hey Nat, what is your opinion/expertise on a Series LLC? Some recommend that the LLC's be setup prior to investing because it's more of a pain to transfer after the fact.

 I own(pay a mortgage) at my current residence.   I rent some of the rooms out to friends......informally.