All Forum Posts by: Jeff Stein

The nice thing about Texas is that there is no state income tax so taxes can easily be done from out of state if that is something you are interested in. Unfortunately I do not know anyone local in your area, but feel free to message me if you have any other questions or need some help.

@Brad Campbell

You can create your LLC when you put in an offer. No need to create it early. As this is your first deal, the bank will likely not care about how long your LLC has been present, but may require you to personally guarantee the mortgage.

@Devonte Thomas

How are you doing bookkeeping? Your own books with something like quickbooks, Stessa or using an accountant. This is typically a good place to see what money can be taken from the business vs kept in. I recommend just having a checking account for income and expenses and a second account for security deposits just to keep things simple. 

Working with local banks or credit unions will typically make it a little easier to get a loan. The caveat is you may be paying a slightly higher interest rate for this convenience. Having multiple years of tax returns showing your income will also carry some weight.

@Lauren Wiggins

I would recommend starting with rents. Try to get a good sense of what residential units are rent for in your area for that size and also try to get some commercial comps. Commercial rents do vary a lot, but they typically can wind down to price per square foot per year ($/sqft/yr). Some include taxes, repairs and insurance (triple net, NNN), others just have some portion of this included. The busier the street, the easier I found commercial space is to lease. check the department of transportation website. For reference, I have had no problem renting out office space that has good signage and >30k cars per day traveling by.

@Lauren Wiggins

I may be biased since I own all commercial properties, but why spend the money to convert the office space to residential? Do you expect to get that much higher returns in this area?

@Yousef Reda

My recommendation would be to start at the end of the process and work backwards. What are your goals in life and retirement? 

Make sure you check the state rules on how deposits must be handled. Sometimes a simple saving account will work, but not everywhere. I recommend trying to keep personal money outside of you business so you have completely separate books.

@Austin Nieves

I have found that local banks are typically able yo work more with you to get financing approved. That said, it typically comes at a slightly higher interest rate or closing fees.

Depending on what property you are planning to 1031 exchange into, it really helps to have a larger down payment. Many commercial mortgages will require 25-30% down. If you have more than this, getting financing will be even easier.

@Austin Nieves

I have found that local banks are typically able yo work more with you to get financing approved. That said, it typically comes at a slightly higher interest rate or closing fees.

Depending on what property you are planning to 1031 exchange into, it really helps to have a larger down payment. Many commercial mortgages will require 25-30% down. If you have more than this, getting financing will be even easier.