All Forum Posts by: Grant Thompson

Welcome to BP Kyle!

Welcome to BP Jeanifer. Feel free to reach out with any analysis questions you may have!

Taylor,

The downsides to an LLC in my opinion are mostly cost related and typically a higher interest rate than conventional loans. Otherwise the liability protection is a nice plus.

I'd say it very much depends on what your concerns are. If you are worried about it impacting your relationship negatively then go with option 1 of buying it yourself and then doing the deal with you mom on property number 2. An LLC is not necessary and can increase costs and interest rates, so that is something to consider.

Feel free to reach out to me if you have any questions!

Hello Matt,

You can purchase additional properties as investment properties, use conventional financing (up to 10 total), and close in your own name. You could setup an LLC, but its typically not necessary early on and rates are typically higher for loans closed in an entity.

Madison,

A couple recommendations,

1. If you are investing with family be very clear and upfront on what the plan is, your expectations for the investment, and each person's role. Lots of people invest with family, myself included, but transparency is key.

2. You could either open an LLC and structure it as a partnership or structure it as a Joint Venture which is less costly. It is probably worth consulting an attorney as well.

Andrew,

When you use seller financing you still end up owning the property (taking title) and the seller will own the note which you agree to pay by the set terms. This is definitely a viable strategy, close on the property with seller financing, rehab it, and then cash out refinance to pay off the seller financing note. If you need money for the rehab work this can be a little tricky. Some lenders will pay for a portion or all of the rehab, but I doubt this is possible with seller financing so you may have to get creative.

Justin,

Nice to meet you and welcome to Bigger Pockets! What are your RE goals?

Caesar,

References from other investors is by far the best way to get to know if the lender is easy to work with.

A HELOC is a bit more flexible in my opinion as you can access it when needed, but you are not required to draw on it. However, a cash out refi is a whole new loan. HELOCs are typically easier to obtain.