All Forum Posts by: Joe Tomko

Welcome to bigger pockets! MF seems to be hot nationwide right now. I recommend finding a market (not necessarily the largest metro areas) where employment is growing, then get in before it is a hot market. For the sake of diversification, consider also vacation homes and storage units. Anther way to diversify is through being a hard money lender, a JV Partner for a note investor, or a tax lien fund, which are all passive and headache free, yet could give you the same returns as owning a MF or two.

 As cash is king, you are in a sting position.  If you decide MF is still where you want to be, consider either buying for cash (quicker close is enticing to sellers) and then taking it an equity loan against the property to buy another property and repeat.  Also consider leveraging from the start. 

Whatever you do with regard to buying physical property, protect yourself.  Check out Anderson advisors in Tacoma and Las Vegas to learn about asset protection.  I'm not affiliated with them, but I utilize them. 

I wish you great success. 

Joe

Nice contribution, Dan.  I hear Linda.com has excel training as well. 

I am creating my calculator and, being new, my challenge is figuring out what the expenses (or potential expenses) are as well as how much each will be for a given state, county, property.  I want to calculate for reinstatement (and modification) and for foreclosure (and deed in lieu).  Those are my primary and secondary exit strategies. 

Sorry for the confusion. I didn't realize that my daughter would be confused with a daughter LLC. A single member LLC has a high rate of IRS audit. My daughter is a 2% shareholder in X LLC, which greatly reduces my audit risk.

X LLC wholly owns x LLC, y LLC, & z LLC, which are disregarded entities for tax purposes. These are "daughter LLCs" as they are offshoots of the parent, X LLC.

x LLC, owns property x. y LLC owns property y. z LLC owed property z.

I don't know that a trust needs to be temporary. Will you continue to use the S Corp after moving the property? If not, I think converting it to an LLC is a good option. Call Anderson and get a free consultation. Send me a PM and I can call you to discuss further. If you go the trust route, they can help you do it anonymously which will also avoid triggering the due on sale clause of any outstanding mortgage.

Welcome, Brandon! There are so many avenues in real estate investing. I wish you much success and joy.

I'm in the Lehigh Valley jyst to your north.  As others have said, shop around for a mortgage.  If all else fails, try offering a bigger down payment.  I'd also look at a triplex or a quad if you can find one....better bang for your buck. 

I'm happy to share experiences with out of state rehabs, hard money lending, tax lien funds, rental units,  investing, just drop me a line.

Joe

Welcome, David!  There are so many avenues in real estate investing.  I wish you much success and joy. 

I'm happy to share experiences with out of state rehabs, hard money lending, tax lien funds, rental units, and note investing, just drop me a line. 

Joe

I see two options. Put it into a trust with the beneficial interest of the trusty being the LLC. You could also convert the S Corp to an LLC, but you also need to figure out how to tax the LLC. LLCs can be taxed as an S Corp, a C Corp, a partnership, or as a sole proprietorship.

I own (my daughter owns 2%) a holding company LLC taxed as a partnership. This holding company fully owns daughter LLCs that are disregarded entities. These daughter LLCs hold property. This gives me asset protection and anonymity.

I suggest you contact Anderson Advisors in Cheyenne, Las Vegas, or Tacoma.  I have no affiliation with them, but i utilize their services.  I'm not a lawyer so i give no advice other than to consult with them.  They have a ton of videos on their website and on YouTube. 

I hope this helps. 

Joe

Hi, Rushda. Welcome! I would recommend against investing in New Jersey as renter-landlord laws tilt heavily in favor of the tenant. If you have a bad tenant, you could have a protracted expensive eviction. Pennsylvania is more landlord friendly. I just sold a duplex in Allentown because it had appreciated rather well in the past two years. I plan to put my profits to work investing in mortgage notes, instead of another rental property.  Let me know if you want details on note investing. 

If you still want a buy-and-hold rental property, I suggest finding an area where jobs are growing, as that generally means rent rates and appreciation are good. I would not bank on appreciation, however. I would make an investment based upon cash flow, as that is what allows you to make your monthly expenses.

Do you want to be a landlord or an investor? A landlord runs everything themselves, including collecting rents (and hearing sob stories as to why rent cannot be paid on time) and finding tenants. An investor hires a property manager. Yes, it cuts into cash flow, but it eliminates headaches.

Do some research on what to include in a lease. Put as much on your tenants as possible (clogged toilets, loose hinges, etc., all utilities including sewer). The more they are responsible, the better they will take care of your property.

Take that $100,000 and leverage it into $350,000 (yes you could leverage it into $400,000, but you don't want to be cash poor) and buy a multifamily with as many units as you can find, preferably a triplex at a minimum. Fewer roofs, sidewalks, lawns, etc. per tenant helps to keep expenses down.

Isolate your business life from your personal life. Go to YouTube and search for Anderson Advisors Asset Protection.  I have no affiliation with Anderson, I just utilize them.  If you ever get sued (likelihood is high), you will want to have your business in order, they can help you to set it up very well.

Email me if you have more questions.

I like this idea.  I'm still fairly new to BP and still exploring all it has to offer (and contributing where I can) for my business.  This is a great site.

I wish I could find a phone number. Thanks, Dave. 

Thank you, Andrew.  I have a lot of linkedin contacts, which I'll use. Scott has a private FB group that I also want to join, to network with other investors. 

Do you have any idea how I can either access my FB account or delete my account?  This is incredibly frustrating and I cannot find anything worthwhile online.  Thank you.