All Forum Posts by: Daniel L.

Hypothetical question for you all. What would you do if you came into $500,000 of investible money and wanted to put that into real estate? What does that look like to you in your opinion? 

-Do you buy, say 5 $100k units and run them debt free? 

-Do you buy, say 10 $100k units and put 50% down on each? 

-Do you buy, say 20 $100k units and put 25% down on each? 

-Do you simply just buy a holiday home? :)

Assuming the goal is passive income over time and property to be held in an LLC (so perhaps financing an issue?)


 

Hi All --

I am currently an American citizen living abroad and looking to invest in a property in Indiana. I currently do not hold any other property investments in the US and have a mailing address to my folks place in NJ. 

I know there have been various discussions around this topic, but I really prefer hold an investment in an LLC and not my name.

I plan on buying the property cash to begin with for a fast close. 

Is there anyone on the forum who is experienced or operates a business in this realm who's services I could employ to help with structuring, advice, etc 

Thanks ! 

@Jaysen Medhurst Appreciate your thoughts. Apologies my initial post was not clear. I am ‘putting down’ $1m upfront in order for them to purchase another home. The final transaction price will be MV or $1.2-1.3m - just looking for ways to structure this best for all parties. Correct, I will not be getting $12-13k/month in rent or 10% yield ... but I dont think there are too many people getting that these days,  especially in coastal cities. But I am am a newbie and not a RE guy so could be dead wrong  

Hi all —

I have seen numerous posts on this topic, but none seem too similar and am looking for creative (if any) ideas to transact. 

My folks (retired, not working) are relocating south (future primary residence) and I am going to buy their home from them in NJ. Estimated $1.2-1.3m. Initially I plan on giving them $1m so they could use this money to purchase their new home (which they lived in for 15+ years). In return, they are going to rent the house back from me as they will then use this as their ‘second home’ for 5-6 months per year. This home will be an investment for me and could become a residence at some point. I own no other property. 

Question is from a tax perspective for both sides to be fair, is this best structured as  

1) ‘loan’ them the money, put a lien on the house for that amount, keep it in their name and collect interest/‘rent’? (Somewhat like a reverse mortgage?) 

2) buy the home at MV and assume title in my name and just treat them as tenants? 

3) any other suggestions? 

As an aside.. I have siblings; there is probably cap gains over the ~$250k mark that I have seen mentioned (for them) 

I will end this message by stating I will seek CPA/estate planning services to help assist with overall strategy but looking for something I could be missing in the interim 

Thats great. Thank you for the advice. Was hoping for even lower LTV then that, just a bit concerned on lenders willingness to lend on these types of transactions. Will check around with local lenders.

Thank you 

Hi all. I am currently in contract to purchase 11 condo units of a 40 unit complex all from the same seller. Initially these will be paid for cash in my name, with the idea of refinancing soon after closing under my name or potentially under an LLC

The reason for purchasing cash is to get the deal done swiftly. 

1) Should I be looking to get 11 separate mortgages on the properties or would lenders look at the bulk deal and lend on that based on cash flows? 2) Would this make a difference if held under my name or under an LLC? 3) what sort of LTV could I expect

Very much appreciated  

Thank you @Jason Bott I am mostly concerned about repercussions that could hold me personably liable. Seems there is a lot of debate on holding in an LLC or in your name + umbrella insurance

@Kim Meredith Hampton when you say you have an umbrella policynover each property, are each of the properties held in an LLC and the Policy is under that LLC? Or rather your properties are in your name and you increase your own umbrella policy each time you invest in a new property?

Reason I ask is I am looking to buy some student housing. Initially cash, then switch into an LLC. But given the potential liability with the type of property, prefer be over insured then under :)

Hi all -- my first post here .. 

I am in the process of purchasing multiple units within a condo complex. It will be my first investment for pure rental income. I plan on purchasing this in my name first and transferring into an LLC either upon close or shortly thereafter.

My question is, how do most of you manage your liabilities both personally and from an investment perspective? Ultimately I want to protect myself personally in the event an accident were to happen. Is home owners insurance enough to cover this? Anyone take out additional insurance they have found useful to protect yourselves and/or investments?