All Forum Posts by: Joe Hughis

@Dylan Falso  - That's a bit hard to answer.  The reason being, good deals don't stay on the market very long and being able to act fast can be paramount.  Moreover, good deals come can come in different sales prices.  

I think looking at your goal first and working backwards would provide you with a better feel of how much you should have available to spend.  Think about what type of property you are looking to buy and in what location you plan on buying. From there you should be able to get a good feel of the range properties are selling for.  Then I would suggest adding a buffer of 10-20%, in case costs or an opportunity presents itself.  

Last, if you are new to real estate investing, I suggest buying what you are comfortable with and not biting off too much too fast.  Give yourself plenty of financial wiggle room in your first few transactions from a cost and hold standpoint.  

Cheers!  

@Nikole Gines - If you are using a business entity to hold the real estate title under, than it really doesn't matter what the name is, provided that it's not offensive or disrespectful. Actually, clients I've had with large portfolio's end up using the property address or a sequential numeration for the LLC's or CO names. They find it easier to do it that way, then trying to be come up with a new name for each property they own. Many utilize a new LLC name for each property they own.

However, if you are planning on marketing a service that is related to owning your investment property(ies) than a name might matter more.  

@Dara Diallo - You can get that info from Title Companies, doing cross page research on the web, and sometimes city offices will make that info public (although there might be a fee involved). However, if the property is already vacant, more than likely what you will find is that the property is owned by a financial institution and likely already in the works to be sold at Auction or as an REO.

@Brian Kittner Hello and welcome to Bigger Pockets.  I'm sure you will find a lot of useful information to get you up and running.  Yes it is a seller's market but there are deals to be had! Good luck in your endeavors!  Cheers!

@Lashad Hamilton - First and foremost, thank you for your service to our country. I appreciate your sacrifices and the time you have spent away from your family in protection of all our freedoms.

In regards to your question - It all situations involving tax liabilities and responsibilities, please consult with a legal and/or tax professional.  Any comments or opinions should not be relied upon or construed as advise or instructions. (Disclaimer Done) :)

That being said, where are you thinking of purchasing a property? That can hold significant weight in determining what will ultimately be your filing state. For instance, forming an LLC in Texas may be cheaper and less onerous than California, but if you earn income for that entity in CA you will still have to file as a foreign entity (as in, "not Californian") in the State of CA. Just some food for thought.

Cheers!

@John Caviness - the BP community can be quite helpful.  However, you might find more support from this community if you provide greater details and parameters of what you are looking for.  Cheers! 

@Ronaldo Carvalho - Could it turn in to a "high upscale area"?  It's possible, albeit not likely in the near future.  The issue is that Class A multi-family properties are currently suffering absorption issues in Houston, with many more units still on the way to coming online in the next couple of years.  While there are a number of Class A properties, there are significantly less developers who are bullish about breaking ground on future projects in Houston.   Not to mention, only a small group of lenders who are willing to fund such development projects in Houston.  

All real estate markets have cycles of growth and population growth will keep shifting up, which makes real estate in established geographies a very good investment.  That being said, your investment strategy would have to be in line with the potential of reaping growth from long term holds. 

Both seem like they have their benefits.  The potential drawbacks that I see for each is (1) Kankakee - population of a bit over 26K. Should there be a vacancy in the property it might be harder to fill the unit with a qualified tenant.  (2) for East Chicago, I see the drawback as being perception of area for financing.  Bank lenders are taking wary about lending in the Chicago area right now because of the crime rates that have been making the news as of late. 

Also, keep in mind that the 4 unit is still under residential 1-4 unit financing guidelines.  Whereas, the 8 unit would be considered commercial multi-family.  You will have to adjust your financing down payments, reservers and loan package accordingly.  

@Robert James - Are you talking about a development proposal or are you talking about a proposal for financing to purchase/refinance?

@Josh Tonecha - Demolition and cleaning are often on the lower end of the spectrum when it comes to a property buildout.  Unless you already have an established crew who can do it for you, I would highly suggest you hire a company to do it.  As others have mentioned there are safety, insurance, permitting and liability considerations that you are better off not having to deal with directly.  Believe me, the demo portion is literally just the tip of the iceberg.  Focus you attention on the bigger picture and outsource that portion.