All Forum Posts by: JASON CHOI

Hello BP Family! 

I've made some progress and wanted to share. I just created a LLC in PA. I'll be looking at Philadelphia, Bethlehem and Allentown areas.

Although, I am not too familiar with those areas, I will be doing more research. 

I know this is never ending debate, but... Should I invest in Turnkey properties or Decent ones that need some minor rehab?

Just to give you some context, I have a full time job and a family with young children. On top of that, as you house owners know, there's always something to do with your primary residence. 

I'm also giving some thoughts to hiring a property manager. Please share some of your thoughts thinking back the day you started investing in  your First rental property. 

Thank you!

Thank you all for providing different perspectives and encouragement. 

@Jerryll Noorden My wife said the same thing haha. I may be overthinking this. Have you ever invested out of state at all? Or do you only focus in properties in CT? I was looking at above states because they were more affordable than what I am used to seeing nearby where I live. Also with my current family situation in addition to my 9 to 5 work, I wouldn't have much time to self manage - so for me it didn't make 

@Chris K. You have valid points. I could look at Allentown, Bethlehem, and Philadelphia areas as they are more affordable. I am looking to purchase a few (1-3) single family houses this year and test the water. I would like to look for B-class properties as they are more affordable and typically generate strong cash flows.

Thank you all and have a nice rest of your week. 

Hello BP Community!

I wanted to thank you all for helping me think through all the steps that are required prior to jumping into RE investing. 

Based on my research and your input, I've narrowed down my targets to: Ohio, Georgia, North Carolina and Pennsylvania (where I reside). 

I looked at various factors: 

• Landlord friendly?
• Prone to natural disasters?
• Population growth and its main drivers
• Employment growth and the major employers 
• Unemployment rate
• Median home value
• Median rent
• Rent/Value ratio
• Est. Cash on Cash ratio with some standard assumptions

Based on collected data, my rankings are:

1. OH (Cleveland, Columbus, maybe Cincinnati): affordable, good population and economic growth, 16-20% rent to value ratio
2. NC (Durham, Raleigh and Charlotte): less affordable but high population and economic growth, stable median home values and decent rent to value ratio
3. GA (Atlanta): this is right in between OH and NC. I just ranked OH and NC higher since there are many cities I can invest within one State (since I plan on creating a LLC in the State I will be investing)
4. PA (Philadelphia area): lower population and economic growth, higher unemployment rate compared to other States I researched but there may be less hassle and unforeseen risks compared to out-of-state locations. Additionally, LLC creation/maintenance will be less costly.

Please let me know if I'm thinking through this properly. I would like to pick one state and start investing very soon. 

My next steps are: 

• Form a LLC (name already chosen and confirmed it can be used in above States)
• Set up a business bank account
• Interview property management companies (need some referrals)
• Look into financing in detail (conventional loan vs hard money lending) - need to look at smaller banks that would lend to a LLC perhaps with a personal guarantee
• Visit the site (maybe a property tour)
• Make an offer
• Get an inspection / appraisal
• Close on a deal
• Get a landlord insurance policy + umbrella policy (need some referrals)

As always, I would appreciate any comments, thoughts or feedback. Thank you all!

@Ricardo R. Thank you for your comment. I like  the different angle you are providing. As I learn more about "starting this out appropriately," it become harder to actually pull the trigger. 

If you don't mind me asking, how did you start? Did you end up buying your first one on your own name? 

The thing is I have three young girls and some personal assets that I would like to protect - that's why I'm spending so much time on asset protection topic. 

I already have interested markets and some turnkey providers that I'd like to contact next: OH, MI, IN, and GA.

I would appreciate your insights here! 

@Scott Smith Thank you for sharing this information. I have never heard of SLLC before. As you suggested, I read several articles after you responded. I am very much inclined to go with your firm.

A few follow up questions for you:

1. What is the cost of creating Delaware SLLC vs conventional LLC at Royal Legal Solutions?

2. Is SLLC a widely accepted entity? Do such States like OH, IN, MI, NC or GA recognize the "internal liability shield" of SLLC? These are the areas I would like to invest in in the near future.

3. What is the actual steps in creating 'child' or "series" under SLLC? Can each Series have its own EIN?

4. I read several posts saying not many banks allow you to open a business account with SLLC. Why is that? 

5. Tax perspective: Is it more costly to file taxes for SLLC compared to conventional LLC?

6. For someone like me who's just starting out, would you suggest SLLC or a Land Trust and then transfer to LLC later?

7. Do I need a LLC to deduct business expenses (i.e. travel expense, REI education expense, any other business activity expenses)?

Thank you again for your help!

Hello BP Members!

I am in need for some honest guidance as to protecting my assets before I start my real estate business. I've gotten some mixed opinions in protecting my personal assets: create LLC vs. purchase more insurance per house in addition to umbrella policy.

Some real estate investor told me that LLC would only increase your out-of-pocket costs since you have to pay to create it and also pay taxes annually. She suggested buying more insurance (you will need to have this anyway even if you have LLC) until I accumulate 5-7 properties in my own name.

My biggest concern is protecting my family assets and separate any potential problems from business. I would appreciate your advice!

Thank you.  

Thank you all for your insights. I am in need to some honest guidance as to protecting my assets before I start my business. I've gotten some mixed opinions: create LLC vs purchase more insurance per house in addition to umbrella policy. Any thoughts?
 

Hello BP! 

I'm a relatively new member and my goal is to acquire ONE property by the end of this year. I've been studying rental property investing through various channels and found that BP by far is the best resource out there. 

I wanted to post this wanting to get some opinions from more experienced real estate investors in BP family. I am in the process of creating a LLC in Pennsylvania. I've reached out to a few real estate attorneys and their fees vary wildly ($800 - $2000).

As you all know, It is so difficult to find someone trustworthy. In short, I am looking for references for: 

- Real Estate attorney

- CPA

- Handyman or General

For Attorney and CPA, they don't have to be in PA as long as I can work with them efficiently virtually. 

I would really appreciate your support BP Family!

Thank you.