All Forum Posts by: Grant T.

Quote from @Sam McCormack:

Quote from @Grant T.:

I am curious, if anyone is willing to share. Don't have to be too specific but i think a post like this can help a lot of people out. 

Where are you currently investing in/looking to invest in multi family and why? 

Personally, i am looking at Columbus Ohio, Louisville Kentucky, and smaller cities in Illinois. 

I am leaning away from Columbus currently because everything is so expensive, I'm assuming due to projected appreciation. I like Louisville a lot because it seems like there are some areas where crime is low and pretty good rents for the money and Illinois has a lot of smaller cities that have great demographics. I know Columbus is great, but i'm currently looking for cashflow> appreciation. 

Any responses would be great, weather you don't own a single property or own 1000. Love hearing others thoughts. Thanks.  

 Greater Cincinnati market has a lot to look forward to. Growing areas, landlord friendly, cash flowing, appreciating areas, etc. 

Northern Ky (NOT Louisville) is over shadowed by Cincy a lot so there is a lot of potential there just like Cincinnati. Let me know if there is anyway I can help!

 @Sam McCormack do you have an investor-friendly agent in Cincinnati and Northern Ky that you recommend?

Quote from @Grant T.:

Quote from @Jordan Myer:

Quote from @Grant T.:

I am curious, if anyone is willing to share. Don't have to be too specific but i think a post like this can help a lot of people out. 

Where are you currently investing in/looking to invest in multi family and why? 

Personally, i am looking at Columbus Ohio, Louisville Kentucky, and smaller cities in Illinois. 

I am leaning away from Columbus currently because everything is so expensive, I'm assuming due to projected appreciation. I like Louisville a lot because it seems like there are some areas where crime is low and pretty good rents for the money and Illinois has a lot of smaller cities that have great demographics. I know Columbus is great, but i'm currently looking for cashflow> appreciation. 

Any responses would be great, weather you don't own a single property or own 1000. Love hearing others thoughts. Thanks.  

 Kansas City! Currently one of the fastest growing markets

 currently trying to find best submarkets there. Any you like?

 On the Kansas side - anything in Johnson County. On the Missouri side - Lee's Summit, Waldo, anything around Ward Parkway, Brookside, Westport

Quote from @Grant T.:

I am curious, if anyone is willing to share. Don't have to be too specific but i think a post like this can help a lot of people out. 

Where are you currently investing in/looking to invest in multi family and why? 

Personally, i am looking at Columbus Ohio, Louisville Kentucky, and smaller cities in Illinois. 

I am leaning away from Columbus currently because everything is so expensive, I'm assuming due to projected appreciation. I like Louisville a lot because it seems like there are some areas where crime is low and pretty good rents for the money and Illinois has a lot of smaller cities that have great demographics. I know Columbus is great, but i'm currently looking for cashflow> appreciation. 

Any responses would be great, weather you don't own a single property or own 1000. Love hearing others thoughts. Thanks.  

 Kansas City! Currently one of the fastest growing markets

I have helped several people in the Phoenix market this year with multi-family properties, I think there are deals to be had in most markets with the right people on your team. 

I have also seen quite a few solid deals in the Kansas City market that balances both appreciation and cash flow.

@Grant T., based on your post about "almost bought a 12 unit", I am assuming that is the general size you are looking at.  Somewhere between 5 and 20 units.  If so, and decent midsized, and even smaller, type market will be fine.  All cities noted are established.  Maybe they are "thriving" but they all have industry, major universities, and generally are not going anywhere.  As a whole, the country is low on housing units.  But you do have to watch for what any developments coming in. These could cause, likely temporary, disruptions to your property when they hit lease up.

I invest in Cincinnati and live there.  It is fine, but generally rare to find properties that will actually hit my return metrics anymore.  Plus not worth my time as much, but that is a bit personal.

The biggest challenge you will have in any market is finding good deals.  The cat is out of the bag in real estate, so there is still huge demand and limited properties available.  You are going to have high crime areas in all markets, even Columbus has areas that I would not want to live or own property.  I don't get why Cincinnati has this "bad wrap" about being high crime.  I have lived here 30 years, and don't see it.  But also live in my own bubble of where I live, shop, dine, take kids to school.

Quote from @Grant T.:

I am curious, if anyone is willing to share. Don't have to be too specific but i think a post like this can help a lot of people out. 

Where are you currently investing in/looking to invest in multi family and why? 

Personally, i am looking at Columbus Ohio, Louisville Kentucky, and smaller cities in Illinois. 

I am leaning away from Columbus currently because everything is so expensive, I'm assuming due to projected appreciation. I like Louisville a lot because it seems like there are some areas where crime is low and pretty good rents for the money and Illinois has a lot of smaller cities that have great demographics. I know Columbus is great, but i'm currently looking for cashflow> appreciation. 

Any responses would be great, weather you don't own a single property or own 1000. Love hearing others thoughts. Thanks.  

 Greater Cincinnati market has a lot to look forward to. Growing areas, landlord friendly, cash flowing, appreciating areas, etc. 

Northern Ky (NOT Louisville) is over shadowed by Cincy a lot so there is a lot of potential there just like Cincinnati. Let me know if there is anyway I can help!

Asset protection is important, and I would say even more when you don't have a lot of asset, as losing the few you have may be devastating.

The often recommended structure for passive real estate is one WY holding LLC that is the sole member of individual LLC in the state where each property is located. The WY LLC has strong charging order protection and anonymity, while each individual LLC insulate each property from each other.

When dealing with flips, each property also would also be in its own LLC for asset protection, but for tax issue, as it become an active business, you would want to have them under a separate holding that would probably be taxed as an S-Corp.

These are the general guidelines. But there are some tweaks depending on the state (like CA where you may want to use a statutory trust instead of an LLC, or Florida where a land trust may be advisable to avoid some transfer taxes, etc...)

Also your specific situation may also trigger some other requirements.

So yes, consulting with an asset protection attorney, who is knowledgeable about real estate and taxes is a must. You can also educate yourself on the subject. I highly recommend the Youtube channel of Clint Coons that is filled with hours of knowledge on thee subject.

Last, some people will tell you you don't need LLC and instead should only use umbrella insurance. Using LLC doesn't negate the need for insurance. But insurance won't protect your asset on some lawsuit.
Other will tell you they have never been sued and so you are worried for nothing. It is like saying because you never had a fire you don't need fire insurance.... It is a matter of personal risk taking behavior. At the end of the day, you have to decide what will make you sleep at night.

Quote from @Grant T.:

Hey everyone, i am looking for some advice on the best way to own rental properties out of state and be protected. I have one LLC in Montana where we built our first project but now i am investing in Ohio and plan to build a long term portfolio out there. Will simply starting a new LLC in that state be the best for me or does anyone think there is a better option? Any advice/tips would be greatly appreciated.

Also, thank you to everyone who has responded to my previous forums. Nothing but a bunch of great advice in there and it has really helped me out a lot!

There's no need to form a new entity. depends on lending. lending is more favorable for homes in your name than an LLC. I'd look at transferring to a trust since it can't accelerate a due on sale clause like transferring to an entity can and it's much better for tax planning and long term wealth creation. I wouldn't talk to an attorney like some of the other posters recommended if you have significant assets or a strong net worth I would be talking to a sophisticated wealth tax advisor about long term wealth creation. trusts do not need to be recorded. here is a helpful article about it if you are new to the process and there are some I can recommend in columbus oh

https://legacyassuranceplan.com/articles/trusts/transferring...