All Forum Posts by: Jamie McKenna

I'm new to REI and am wondering what's the best option for obtaining financing. I have a couple partners and we were thinking of talking with local banks in hopes of building a working relationship over the years with a lender we might see at the grocery store. But are there certain banks that might be more able to help us grow...larger banks that would see us as a smaller risk, an online lender that just needs to see that we make payments on time, etc. Any thoughts would be great!

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Originally posted by @Rob Gribben:

I use a spreadsheet that calculates ROI over a 10-year period. I plan to hold for at least 10 years, so I try to project the ROI after 10 years, and then sell in year 11. I try to be as conservative as possible, and therefore use $1,500/year to account for maintenance and improvements (again, to maintain the property in a condition that allows me to compete against other properties and get market rate rental rates). That's based on my experience over the last 4 years with 2 of my properties. The other property I own doesn't have a 4 year history yet, so I don't use it as a basis yet. Over a 10 year period, most properties are going to have updates like roof replace, HVAC replace, kitchen/bath upgrades, etc.....

Rob,

I'm new to real estate investing and would love to know what you include in/how you structure your ROI spreadsheet. Are you willing to expand a little bit on that?

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Curt,

Thanks for the quick reply! That's some good feedback. I've always heard that a separate LLC is best so that if a tenant from one of your properties sues, he/she can only go after that one property. Having the the right insurance and umbrella policy should be able to cover any issues that come up though.

Our biggest hurdle right now is figuring the financing. Do you have any suggestions for the best way to obtain the financing? Do LLC's qualify for FHA loans? We would like to put down as little money as possible. Thanks again!

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Hello all! I'm new to this site and am very excited about making some connections and learning from others who have had success.

Myself and a few others are looking to start buying rental properties in our area to fix up and then rent out. What is the best structure to set up in order to purchase different properties? I've read a lot and am assuming that for each property, we should form a different LLC to limit our liability. My other questions is a bit more tricky to explain.

Can a LLC be comprised of not only individual members, but also another LLC? Basically, my brother and I have formed an LLC. He works for a financial institution across the country and provides some of the financial support. We would be partnering with another individual who would be doing the work on the property. So can our new LLC that is formed to purchase the property, be owned by this other individual and also by the LLC that my brother and I have? Sorry if that's a bit confusing. Thanks for any help!

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All Forum Posts by: Jamie McKenna

Jamie McKenna has started 7 posts and replied 14 times.

Post: Best type of banks to borrow from?

Post: Tell us about your expenses

Post: Looking to start investing in real estate.

Post: Looking to start investing in real estate.