All Forum Posts by: Account Closed

@James E. Awesome information! That has definitely cleared up a lot of the confusion for me. 

A followup question on point number 1 - is it possible to obtain lending for an LLC before it is even created? Reading further down on your answer it sounds like the entity should be created soon before closing which comes after financing is laid out. So I guess I am wondering how that specific part would work?

@Account Closed thanks for your response.

Based on the scenario you outlined, does this mean that the LLC would need to be created before even purchasing property?

Hey BP Community,

Disclaimer: I am not searching for tax/legal advice here, just looking for guidance and looking to learn how others have done this.

I am looking to buy and hold on a deal by deal basis with a partner (coworker of mine). We are looking to put 25% down (or 30% if required), which would be funded equally by the both of us with a medium term holding period (roughly 5 years). What are the logistics of actually purchasing like this? I was advised to use an LLC by a CPA, but was provided zero guidance on the actual steps and details regarding purchasing. To me, saying "use an LLC" means almost nothing because we already know that an LLC works the majority of the time. I am wondering if I was provided no guidance because this is not a CPA type of issue - maybe its an attorney type of issue?

To be more specific, the questions I am looking to have answered are along the lines of:

1) Do we obtain a mortgage in our own name, or LLC? (our lender was unsure of how lending to LLC works)

2) When making an offer on a property, is the offer in our names as individuals or in the LLC?

3) Should we even create the entity before purchasing, or do we purchase the property ourselves and transfer something (title, idk) into the entity?

4) Who holds the title - LLC, or us as individuals?

As you can probably see, a lot of my questions are around the idea of "who does blah blah blah - the LLC, or us as individuals in our own name(s)?" Basically, I want to be ready to put an offer on a deal the instant my partner and I deem that it is a good deal.

Thanks!

Also, I am really sorry about formatting. I didn't think that posting from the app on my phone was going to make my post one long paragraph.

Hey BP,

After hearing such optimistic projections and opinions on the up-and-coming East Franklinton, I decided to drive through it myself. If I am going to be honest, I am a bit disappointed with what I saw. I assume that I am being ignorant and am missing something here. Let me elaborate below.

As someone who is looking to buy and hold, I do not see how I could cash flow in that area simply because of vacancy rate and lack of amenities. I fear that I could not find tenants that would actually want to move into any rentals in the area. Imagine moving into a rental that has a boarded up house on your left and right.

I do believe in the long term (or even short term) appreciation of East Franklinton if the city actually executes its plans on reforming it. Is anyone else feeling the same way? Is buy and hold a viable strategy for that area, and if so, which particular pockets of East Franklinton should I go visit again?

@Jiva Segaran I am looking at an FHA for Quincy, MA, and most likely going to look in Attleboro for additional investment properties. I currently work in Boston, so it would be much easier for me to live in Quincy. When and where did you first get your FHA loan, and how did that work out?

Dolores Waldron it was more of a life issue. I want to owner occupy my first property, and I was really debating on whether or not Attleboro was a good choice. It was also a money issue in the sense that I have the cash for an FHA or MassHousing, but not a conventional down payment at the moment.

Thomas Franklin That is an awesome idea, and I sincerely appreciate you sharing that with me. I will definitely use those questions in addition to others. I would like to understand a little about asking how many investors they work with. Is it beneficial to me if a realtor works with more investors? Also, are there any cons to me as an investor of a realtor works with a lot of other investors?

Jiva Segaran I didn't jump on it originally. I couldn't pull the trigger.

I have posted in the past about wanting to owner occupy in Attleboro, MA. Well, as many of you might have experienced in your lives, things change. My fiancé and I both live in Quincy and work in Boston and love the easy access to the Red Line. We are looking to stay in the Quincy area. What I am looking for is an investor friendly real estate agent that knows Quincy and surrounding areas like no other. A little bit about the type of property I'm looking for: - In need of repairs - Motivated seller - 2-4 units - With owner occupancy, I am looking to at LEAST have my mortgage paid for - Without owner occupancy, I want cash flow of at least $200. - Safe area - Close to T I am looking to learn the market for a couple of months, and actually start putting offers down this summer. I am currently locked into a lease, so that is why I need to wait. Thank you so much for taking the time to read through this! I can't wait to hear back!