All Forum Posts by: James McHugh

I am looking for general contractors that operate in the Jacksonville area who also have investment properties of their own, preferably. Or at least are well versed in investment flips / BRRR renos. Shoot me a private message. Thanks!

Well as a follow up for anyone else, I got my clear answer:

You have two options here. You can use your own name along with a virtual address as the company address. That is perfectly acceptable to do as the state doesn't care what your company location is. As long as you have a real address you can be sent mail or served if sued at (registered agent specifically). You do not have to use your home address anywhere.

If you want a totally Anonymous LLC you would need to set up the LLC in a state that does not require you to report member names to the state. Then you would take that LLC and register the LLC as a Florida "foreign LLC." The owner's name would then only show that out-of-state LLC as the owner and a virtual address.

However, you would have to pay LLC fees in both states yearly to keep them both active. So there is a way to do it, it is just more convoluted. And there may be tax ramifications depending on what that state's tax laws are.

I have read numerous threads on this and I haven't been able to come to a good conclusion on this. It appears you may be able to use a service like physicaladdress.com or an attorney address to file for you for principal and mailing address. But when searching for an entity, you still have to list yourself as an authorized person / member so in the end is there really any point to get a virtual office address? (Or a way to get around this)

Quote from @Chris Mills:

@Travis Schmidt I've gone the attorney route like @Dan Travieso and I've done the virtual office thing too. They both worked out well. You've got options. 

Virtual office? 

Quote from @ST King:

Hello everyone!

I'm about as much of a noob as you can be when it comes to real estate investing -- already though I'm contemplating the BRRRR route as an appropriate starting point in creating my portfolio. My question is this -- when it comes to financing a potential deal, how likely is it I can do it with OPM given my lack of initial experience/funding?

By the way -- I already own a home through a conventional mortgage but I'm not sure I'll be able to refinance just yet.  I did think about that as a potential source of funds towards my first deal, however. 

Also -- what would you recommend towards finding that first opportunity?  My research seems to imply the best ones are not the ones that appear on realtor.com or zillow but rather those you find offline or through networking. 

Thanks for any input at all on these matters.  I really like that there's a community like this for investors.  

I am also on the newer side but doing my homework. You can also look at rolling your 401k into a self directed IRA. You can look for personal investors, then micro loans of credit and numerous others. I've been researching hard lately and it really is like drinking water out of a firehose!

Quote from @Andrew Postell:

@ST King thanks for posting. I always recommend networking with local investors. It's the most helpful method to doing just about anything in real estate. Even you posting here is a form of networking - so you are already doing it! But there are some actual groups in Jacksonville, Florida that you can go to in person (maybe online still?) so absolutely go and get involved with those. You can certainly use other people's money...as long as you know "other people" to borrow from. But that's how I got started. I started on $30k homes in Jacksonville, Florida. No bank would lend to me at that price point so I had to use OPM to get started. So it's entirely possible to do. I would also state that finding properties "off market" is easier right now than finding properties on the MLS. Network like a madman and keep learning. Thanks!

Thanks for sharing all this. I am also in the Jacksonville area. Would you mind clarifying what you meant from “I would also state that finding properties "off market" is easier right now than finding properties on the MLS.”? How so just from networking or for other reasons? Thanks! 

Well, he didn't notice corroded coils which are leaking chemicals and mold that are extremely obvious even to the untrained eye when peeling the panel off.  Would've been nice to know this detail before the purchase.  But I digress... Let me rephrase the main concern as it didn't come out right above.  I have a warranty purchased on the house.  I have heard they only put in the bare minimum quality of standard.  Does anyone know this to be true or can you make sure they put in a good quality unit?  I'm guessing it all depends on the contract?

I got a home inspection on a new home I was purchasing. The home inspection did note that the AC unit was beyond its normal life and would probably need to be replaced within a few years. However, after purchasing the house I had a local AC company come out and inspect for maintenance and there were a lot of things wrong with it often.

He could tell by popping off the doors they the insulation was falling off (sparks flied at one point) and the evaporator condenser was heavily corrosive which can leak harmful R22 refrigerant into the home plus found bio growth inside leading to potential health concerns. Long story made short they suggest I change the unit immediately. I have homework NT on the house but they discourage me from calling them stating that they would only put in the bare minimum to get the job done. Can I hold the home inspector liable for anything? Is it true about home warranty companies and the service they provide that it will be just enough to meet code? Please let me know your thoughts.

Larry - always happy to mentor? That's great. Can you share with me why that is? What benefits do you get out of mentoring someone new to the game? Thanks.

About to purchase my first primary residence. Looking to get into REI. I have the ability to put 20% down but that will leave me with much less in the bank. I'm debating if I should put down slightly less so I have extra cash for reinvestment in actual rental properties but I know PMI kicks in and can add a few hundred dollars a month. How does one decide the best approach? "It depends"?

The other concern was how to maximize tax strategies. I know there is a homestead exemption that can lower your taxable amount by up to $50K on the house (https://en.wikipedia.org/wiki/Homestead_exemption_in_Florida#Reduction_of_Ad_Valorem_Property_Tax) and I've also seen the Housing Mortgage Credit Certificate which can supposedly save up to $2K on taxes (https://apps.floridahousing.org/StandAlone/MCCReservations/MCCInfo.htm)

Am I on the right track?  I'm trying my hardest to learn, research and grow. Any advice is appreciated.