All Forum Posts by: Kory Thaut

@Richard V. Credit to the company (your LLC) is based on the company's credit worthiness. When you start a company, you generally need to begin to establish credit if you want to originate loans in the LLC.

Where the individual members credit comes into play is when you begin getting financing as individuals with the intent to "contribute" those properties to the business (e.g. deed them over, but the loans are still in individual names which is common when your LLC doesn't have credit or assets to get funding directly but still want the asset production)

@Taylor Pariseau@Phillip Burns 

My favorite book on this topic is The Loopholes of Real Estate Investing by Garrett Sutton. I've listened to this book on audible at least a half dozen times.  He walks through great detail that provides a wealth of knowledge which forces you to ask yourself, attorneys, CPAs, great questions.  For example, why quitclaim deed transfers aren't necessarily the best way to make property transfers (voids title insurance whereas warranty deed doesn't)

I setup my first LLC by myself after reading a few books, blogs, sites, etc... but it wasn't until I came across this book that I felt like I had the right knowledge on the topic of entity structure. I now work closely with a good attorney and have the knowledge to speak the same language, making the whole process move a lot faster.

@Akialah Ansar I think those are both great ideas for getting going.  When I first stared in the work force, I really wish I'd house hacked by buying a duplex, living in one side and then renting out the other.  I also like the idea of a house hack to buy a property, fix it up while living in it then rent it out as you move on to the next one.  

One thing to keep in mind as you determine which strategy to use is how you're going to fund your "next" deal.  If you want to get conventional lending on another property, most lenders are going to require 2+ years of rental experience before they'll off set the debt to income ratio with rents.  This can make it a little trickier getting money within those first 2 years, even if you have amazing cash flow on the rental.  

Using an agent to help you is a personal preference but you don't necessarily need one for what you've described above. Either way, I'd still spend some time talking to local agents. 

@Hector Chavez On the buy and hold front, I think it's the long-term maintenance factor that most people leave out.  As homes age, they naturally are going to require more funds to maintain.  

I've tried many tools, including the BP tool here, which is good.  But I am stuck on using  my spreadsheets that I've evolved over time for analysis.  

@Taylor Pariseau I wish I'd know more about house hacking when I first started out in the work force, pre REI. Really wish I'd bought a duplex, lived in one side and rented the other.

When I got into investing, I wish I'd known what Section 8 was before I tried to manage my own SFR properties. Jumped into the application process without doing a little more research.

@Shelli Neal I've had a good experience with Jones and Roth for managing my real estate related tax items.  I only do SFRs right now with LLCs so my situation may be less complex.

@Kami Carlson Was just talking to a colleague about Medford/Ashland just this morning.  I have a few questions, I'll be in touch.

@James Messa Is that the right tax value?  I'd be curious what the assessed value is.  I've spent some time up in the Humble area and didn't think the taxes were that high, but maybe I am missing something in the Katy area.

@Mark Creason That's correct, she would be on her own for that responsibility or pay for a 3rd party service.  Just like setting the entity up initially, she could choose to do things herself or get help.  Personal choice 

@Courtney Jones Here in Oregon, the filing is $100 plus any additional paperwork you want to do beyond the minimum.  The state automatically creates a generic operating agreement that you can use for the basics such as getting a business checking account.  I don't suggest this as it leaves way too many gaps and "gray/grey" areas if your goal is asset protection.  You're going to want more decisions documented.  I went down this route myself several years ago but have since had that business corrected and use the attorney for all entity related items.      

$5k is way too much.  You should't be over $1k for the first and then if you use that same attorney and setup future, like entities, each subsequent should be a lot cheaper.  The law office I us is also my registered agent service, which or course, you don't get when you do it yourself, you're on your own.