All Forum Posts by: David Little

Hello,

New investor here. I have a few questions about the arrangement of working with an investor friendly realtor. Apologies if my questions are ignorant but appreciate any thoughts.

If I'm working with an investor friendly realtor, are they primarily working for the realtor fee that they would collect if they can find a property? If they find a property on-market, am I correct in thinking they will receive their fee? If they find a property off-market, my understanding is they can try to collect a fee from the seller, but may not be able to collect. Is that also accurate?

Thank you in advance!

My friend and I are looking to purchase our first investment property to basically prove concept. Our primary strategy is STR, but we have backup strategies if that falls through.

After much discussion, we do not intend to create an LLC at present, primarily because we believe insurances properly mitigates the liability risk.

I have two financing questions.

1) I suspect I’ll be able to get a better conventional loan interest rate than we could get jointly for various reasons (slightly  better credit, mortgage history, and W-2 income). Is there a legal way by which I could get the loan in my name (based on my credit) but have the liability for the loan shared between us. We would split the down payment and the mortgage payments, and I would ultimately want the responsibility for the loan shared as well.

2) My present thinking is that a conventional loan is our best bet (even is applying jointly). Are there loans out there  that can offer a better interest rate than a conventional loan? Are there loans out there that can offer <20% down payment on an investment property that is not owner occupied?

Thank you in advance for your thoughts.

@nathan, you’ve laid it out more clearly than I’ve been able to find elsewhere. Thank you for that. And, I think you’re saying what I was already partly thinking. How likely is it for someone to sue for more than $1 million? Not saying it’s impossible, but I couldn’t find a single example that didn’t involve fraud, gross negligence, or massive numbers of tenants.

This is my first investment, so I'll likely not bother with an LLC, but I'll reconsider if the business grows.

1) If I choose to create an LLC for each of my rental property investments, does each one have independent credit rating?

2) If I do have an LLC, what are the advantages / disadvantages to having the LLC own the property vs personally owning the property?

Apologies if these are ignorant questions. Thank you in advance!