All Forum Posts by: Grant Thompson

Awesome deal! Congratulations Thomas!

Matthew,

It is a bit difficult to go about raising rents on the basis of inflation alone. We typically look to the local market and its comps to justify what rents we can charge for new occupancy and renewals.

It depends greatly on your investment goals, but I look for cash flow first as it is more predictable while appreciate is icing on the cake, as you said, because it's more speculative. Some people have made a lot of money betting on the reverse though. 

Disclaimer: I am not a tax expert, but to my knowledge you cannot use a 1031 on a primary residence. The best way to get the correct answer is to call a CPA, it could be a costly mistake if not confirmed by a tax professional.

As you mentioned, definitely speak to an attorney. However, you are correct that a business bank account in the name of the LLC needs to be opened to hold company assets.

Regarding payments, it depends on how the operating agreement is written in my experience. You can structure it however you and your partner wish. 

Congratulations Mark! If you don't mind sharing, what are some lessons learned?

Great post, thanks for sharing Rob!

@Abad Marroquin

We use https://www.delawareregistered... as our Delaware registered agent and have had a great experience. It will cost you $180 for the initial filing and $45/year for their services + Delaware annual fees which can be found here https://corp.delaware.gov/fee/.

@Kevan Baum

This is very typical of the national lenders. The best way to find a lender that will entertain these small loan amounts is to find a local bank or credit union in the vicinity of these properties. They typically have looser standards and ones that apply to the local real estate market.

@Kevin Kim

It depends on the municipality, but real estate taxes are typically paid once a year in lump sum form. The servicer of your loan will handle charging taxes on a monthly basis and holding them in an escrow account and then paying the tax bill when due. Without knowing too much about the municipality or property you purchase it is hard to say exactly why 10 months was withheld, but this is fairly normal as the lender calculates which amount of $ needs to be set aside for the upcoming tax bill.