All Forum Posts by: Greg Junge

@Peter T. I like having one property in one LLC. They are relatively inexpensive to set up depending where you are and it only takes one lawsuit to make you regret it. I'm more conservative when it come to asset protection but in my opinion it's worth the money.

I'd consult with your CPA and/or strategist about it and find what's best for you. I've heard many stories of people bunching properties in LLC's and getting burned and to me it's worth the initial cost, cost of doing business.

But to each there own and that's just my opinion. Best of luck and continued success to all!

@Jay Hinrichs Thanks, always appreciate your input and wisdom!

@Engelo Rumora

Are these properties in an area that is highly occupied by renters, or are they mixed into neighborhoods that have owner occupied owners as well?

I ask because when it comes time to sell, I like having the option to sell to both investors and the retail market.

Do you have numbers/percentages of what a breakdown of owner occupied vs rental houses in a neighborhood or zip code that you service?

@Alexander Felice I know this is an old post but I just ran across it and it's the best and most concise explanation and example of why using leverage is better than using your own cash.

Best of luck to you man and keep posting!

As a licensed Realtor, I think it's definitely worth it for a handful of reasons.  First is control! As a realtor, I can control my searches, and if I see a property hit the mls, I can access it right away, and not rely on someone else to fit me into their schedule.  That's the biggest benefit, but there are more. 

I'd say that having a license obviously helps you save commission when buying or selling properties for yourself, but you can get creative with that. I've done personal deals where I use the commission that I would have received and pay for closing costs on that deal. So I bought the property myself, saved 3% there, and used that 3% to pay for closing costs also.  There are rules on how much you can use, but you get my point.

I've heard of agents rolling their commissions into the deal if it's a mutlifamily deal and you are partnering with someone.  So you sell a 2 Million dollar multi, which would be about 60k in commissions. Again there are things to look for when doing this, you can own a small part of a 2 million MF building that will grow and cash flow, or you can take a 60k commission. 

I don't think anyone can answer this for you, but those are the pros that I see of having a license, and it all does depend on how you use it, how often you'll use it, and what that education is worth to you.  Paying $1500 a year for the education you receive as a Realtor and how it applies to investing, is much less than any seminar or coach.

Anyway, that's just my opinion but I hope it helps!

Greg J

@Jeffrey Douglas

My two favorite books I've recently read and put into practice are...

Miracle Morning Millionaires by Hal Elrod and David Osborn

Tax Free Wealth by Tom Wheelright.

Miracle Morning Millionaires changed my mornings and made them more effective. And Tax Free Wealth is just an awesome tool for any investor. I love taxes and reading about them and Tom Wheelright is the best!

Best of luck!

@Daniel Dietz thanks for your input Daniel. If my math is correct on your example with me paying the property management fee, that breaks down for roughly a 60-40 split in favor of the money investor, not myself.

I would also say that once the investor gets their initial money back through a cash out refi in the future, assuming the property appreciates, they'd get paid that 25k first, and then the rest would be split accordingly after that and possibly shift to 50-50 after the investor gets paid their initial down payment. This way, once that happens, neither partner has any money in the deal and it's even.

@Matt Altrich @Ryan Swan @Jay Hinrichs - thanks for your responses and input. This is why I like to throw ideas out on the forum.

I appreciate it and welcome any more responses as well.

@Elenis Camargo Great story, and I sent you a request to connect and I'd love to see what we can do together. I have a few ideas and really like your story and experience. 

Looking forward to connecting soon!

Greg

@James Wise Ha thanks! I can justify it as my due diligence  for out of state investing, and I was in between appointments and it was certainly entertaining.

@Gabe Barlow I'm currently evaluating Jacksonville, Orlando, and Tampa for now.  I have Houston and Dallas as possibilities but I think the property taxes are too high in most cases.  

Any input on those three florida markets would be appreciated. I have contacted a few turnkey providers there but I'm careful to invest with turnkey, but will pull the trigger if the numbers work and the long term exit strategy is there for both a retail sell exit and/or investor sell exit.