All Forum Posts by: John B Clark

There are definitely people with more experience than I have, but from what I understand, Proper insurance (and probably other companies) will cover like a commercial policy, as well as a personal property for your own personal use. At least that's how the policy we got works for our STR. I defer to the others with more experience than I, though.

I’m by far the rookie here, but it seems like what others are saying is good advice. I read the two books that BP has on tax strategies, and they don’t necessary talk about paying no taxes - they primarily talk about minimizing your tax liability based on certain tax code allowances available to RE investors and your individual situation. These other folks know way more than I do, though!  

Congrats on the positive cash flow.  Keep up the good work!

This is amazing advice and perspective for us rookies!  Thank you for sharing!

One strategy I've heard of is, like Brandon wrote, one LLC per so much in equity or property value. So, maybe 3-5 in an LLC until they reach your threshold, then start another LLC, etc. And it's important these LLCs are in the same state as your properties. Then, have a limited partnership own the LLCs and make that your operating company. You pay all bills and take your personal distributions from the LP. This still allows you to have one tax return because everything will ultimately flow through to your personal tax return, but provides for better asset protection.

As you know, LLC means "limited liability company" (limited liability is in the name) and most of the time they are disregarded entities for tax purposes. However, this can (not necessarily based on how it was set up, but could) result in limited protection. The same thing that gets accountants excited makes lawyers nervous, which is why I believe you need both in your corner working together.

Check out the Asset Protection Counsel. Depending on your net worth and other assets, they could be well worth your time. I'm not affiliated with them, but I was a practicing attorney in another life, so I do understand what they're talking about, and the limits to protection and LLC provides, and how some here might rely on the LLC a bit too much. It's just important to understand the benefits and potential limits to anything you do.

In addition to the research and due diligence others are suggesting, you can also look them up right here on BP.  There truly are really good turnkey providers, and the great ones will have reviews here on BP from actual investors.  BP is a great place to start your research.  

 Welcome to the BP community!  As an encouragement to you, I’ve recently heard a couple of BP podcasts where moms (I know at least one was a single mom!) got into investing and eventually replaced their incomes and found financial freedom. For inspiration, listen to shows 331 and 340. There is also a show on the BP rookie podcast where they interviewed a mom (married, but sounds like she did all the work) who started with turnkey, eventually got into all types of other deals and now owns a crazy number of properties.  All that to say, you can do this!

Hi Andre, you mentioned defining your crystal clear criteria…just as an fyi in case you haven’t read it - Brandon Turner’s first book on multifamily investing has a few chapters that are great guides to help you define your crystal clear criteria and why it’s so important. Even if you don’t buy multifamily, as a rookie, I found the concepts super helpful.  It helped me think through and define not only my criteria, but even a plan to get there.

Hi Ashley, I know this thread is a couple years old now, but I just wanted to say that my wife and I are just now getting into real estate hoping to make a legacy for our 4 kids.  I've been listening to every BP podcast I can get my hands on, and came across yours.  All I have to say is WOW!  Your story is incredibly inspiring, and encourages me that maybe my wife and I really can do this too!  Thank you for being vulnerable and sharing your story in such an open format, and keep up the great work!  

There are also a bunch of free materials, including free excel calculators for deal analysis, rehab costs, etc.  I don’t remember how I found the materials, but it should be in the same section as audio and other stuff for Pro members.  Pro is a great benefit, especially for us newbies!  Welcome!

Hi Chad, thank you for the response! We have, but thought the time commitment is too high and the property is about 1-1.25 hours away depending on traffic. We are hiring a PM that will post everything under an account listed in our name so we can take over if we ever feel we can. Would love to hear more of your thoughts on time commitment, etc.!