All Forum Posts by: Account Closed

Thank you very much for your response. That seems to be a reasonable and rational approach to take, and will probably yield a highly accurate evaluation. If I ever get in contact with the ownership group I will ask them to share with me the earnings history for those and see how it comes up.

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*This link comes directly from our calculators, based on information input by the member who posted.

     Hello Bigger Pockets nation! I found this property while doing research and I find it very intriguing, but unfortunately it is also confusing as heck for me. I have never owned anything like this property and all the variables are defeating my brain. There are 16 studios, 3 retail spaces, a laundromat, and a parking lot. According to Rentometer a 1BR in this area rents for 750 so for my analysis I made all the studios 700. I made the laundromat and the retail spaces 1200 each. The property tax information is reliable as I contacted the town clerk. I have no idea what a water bill would look like for this, nor what the liability insurance policy payment would be. I suppose my question is to all of you out there who own large building and complexes out there, how do you properly analyze something like this? What are the extra costs and considerations that are not present when looking at a simple 1-4 unit house? And how do you wrap your mind around all of this stuff to get a realistic picture of what the cash flow would be like? 

     This will probably be little more than an exercise because I would have to leverage myself to the max in order to lay a hand on this, unless I had a partner. That being said, if all the numbers were good I might just be dumb enough to go for it. Thanks all!

Thank you all for your prompt and thought-provoking responses. I have about 50k in cash ready to go and that's all for my assets available for investment. My goal is to continue to scale indefinitely until I attain the level of net worth i am comfortable with. If I purchase a property in my name would I be able to transfer it to an LLC later? Would that even be something I would want to do? If I create an LLC, should I create multiple layers, as in one LLC to hold the subsidiary LLC's that are the owners of the individual properties? And how to I take funds out of an LLC and put it in my personal bank account and turn it into cash-in-hand?

I am going to follow your advice and seek out a CPA and/or a CFP, as well as an Attorney, provided their services aren't cost prohibitive. But then again, I suppose a little money up-front to avoid a huge loss down the road is a good trade. 

Hello. I am a new investor and have not yet done any deals, but I am learning a tremendous amount on these forums and through the books introduced to me by this site and the members of it. There are still a few things I am not entirely clear about as I get closer and closer to my first deal, and one of those things is the question of LLC's. Is there a general consensus about which way is best, LLC or good liability insurance? I read something that seemed to indicate that if you had an LLC it could be more difficult to pay yourself, or have access to the cash flow? Is this generally true, and if so how do you work it out? Or do you work it out at all? Is an LLC for if you are going to invest and then re-invest the profits, and not realize cash-in-hand for awhile? Or am I misunderstanding something entirely? Any advice would be appreciated and I thank you in advance.

That sounds wonderful, Julie. Thank you very much for sharing your progress, and I look forward to hearing about your continued success