All Forum Posts by: Kent Julian

I'm a buy and hold investor and currently have 3 rental properties... all are doing well and cash flowing nicely.

In the past, I've used conventional loans to purchase and would get pre-approved for these loans. Now, however, I would like to use my HELOC for the next purchase. Once I purchase the property, I'd like to get a more conventional loan on the property and pay off the HELOC... then do it all over again.

Any suggestions about best practices and/or best banks in Gwinnett County, Georgia would be appreciated. Feel free to point me to relevant posts as well.

Thanks!

My pleasure Stacey and Yasmine.

Please let Platinum Property Management know I referred you. They have become good friends over the past few years.

Kent 

 Platinum Property Management. They're great!

It's close to the 1% rule. For instance, most recent purchase was $140k and the rent is $1,310. But my strategy is different than others. I put at least 50% down so they cash flow instantly. I'm also buying in solid neighborhoods with the best schools. I'm definitely a buy and hold for years kind of guy. I own my own business and love the work I do, so I'm not looking to be a full-time real estate investor. For me, it's about taking profit from my full-time business and creating tons of passive cash flow with that profit.

I use a great property management company. Takes away all the headaches and saves money in the long run. My homes have never been empty for more than 7 days.

I'm about to purchase my 3rd home. Have one in Suwanee, one in Buford, and looking for another in Sugar Hill, Buford, Suwanee areas. They cash flow well, but better yet, tenets stay a LONG time. We're going on 5 years with one tenet and 3 years with another.

Thanks @RobBeland. It really made sense early on. 

BTW, I do have an outside management company management my properties. They are great. The LLCs I have are:

* Holding LLCs - to own and hold the properties / that's it

* Another LLC to oversee all the business and finances.

Probably will just go back to holding LLCs only.

@brandonhall and @robbeland - I think both my CPA and Real Estate Attorney have my best interest in mind, but I agree I'm really confused.

@Brandonhall - both LLCs have EIN, contracts, and Operating Agreements. My management LLC has a bank account...the holding LLC does not. Also, the holding LLC are contracting with the management LLC. The holding LLC owns the properties.

I currently have 3 rental properties. I worked with an attorney to set up two LLCs. 

The first LLC is a "holding" LLC. This LLC owns the properties. I plan to place 4-5 properties into this LLC and will then create other holding LLCs for each additional set of 4-5 properties I purchase.

The second LLC is a "management" LLC. I use a professional Property Management Company to manage our properties (which I love), so my management LLC exists to simply handle all business and funds. I set this up primarily so that I didn't need to set up separate bank accounts in the future for each holding LLC I create. I want to be able to run all my rental property business through one bank account.

However, my lawyer and CPA are not in agreement as to which LLC should sign the W-9 with the professional Property Management Company that I work with. My CPA thinks the holding LLC should sign the W-9 and my lawyer thinks the management LLC should sign the W-9.

I wanted this to be simple. Now I'm really confused. Help!