All Forum Posts by: Lisa Lavie

@Lisa Lavie The midwest really is the cashflow king for now. @Derrick Craig Gave a good list of cities. I'd add Cincinnati, Oh to that list also.

Sub 30k-40k properties have great cashflow, however there is a tradeoff to consider. Lower priced properties increase the potential for "drama" and proportionally increase the maintenance costs compared to the purchase price. Keep those factors in mind.

An LLC is your final line of defense. #1 Operate right, #2 Insurance, #3 LLC. Multiple LLCs can be helpful to segregate risk, to protect equity, and to shield personal assets. How your structure your business for asset protection depends on your personal situation.

To find pre market and off market deals requires you to do a lot of the legwork. Posting signs, sending letters, etc. Doing your own marketing and working with wholesalers and investor/agents will yield plenty of good deals to choose from.

Small mortgages are doable, but as you stated, banks are little more reluctant to do them, although I have not run into any that will say "no" out right. Smaller community banks are a good source, although some are reluctant to work with out-of-state owners.

It looks like Realtor.com is starting to put all the MLS listings out there, but a good local investor/agent is your best resource for the MLS.

For every property, you should be doing a title search, and buying owners title insurance. Especially for foreclosures.

I'm currently looking into opening up an LLC. Trying to figure out if I have to open one up in the state that I live in or if I could open one up in any state. Certain states are really pricey.

Becoming good friends with a realtor.. Yes haha! That's the next step!!! 
THANKS!

Originally posted by @Derrick Craig:

Hi @Lisa Lavie 

Welcome to BP!! We are glad that you joined I am going to take a stab at answering your questions, but by all means don't just take my word for it continue doing your research and asking questions here on the forums..

I've been reading that the midwest is the best area to purchase sub 30k-40k properties. Is there anywhere in particular that you'd recommend?  There are lots of places in the Midwest to purchase properties in the sub 30-40k just to name a few, Dayton OH, Cleveland OH, Indianapolis IN, Chicago IL. and the list goes on and on each has great Buy and Hold, plus solid Cash Flowing properties. 

Should I open up an LLC for investment properties? Multiple LLC's? What's the upside? I opened an LLC after I purchased several (7) properties under my belt. Starting off with 1-3 properties you will be fine unless you just want to open up an LLC to get that part out the way. In my opinion I would only open one LLC but others may differ for different reasons. The upside of having a LLC is it shields the owners, who are called members, from being personally liable for  actions of the LLC. LLCs also provide flexibility in management and offer the  benefit of pass-through taxation which means that the profits and losses of the  business pass through to its owners, who report them on their personal tax  returns. Pass-through taxation is among the reasons why LLCs are significantly  easier to run compared to a corporation

What's the best way to find pre market deals? RE Agents, Your local REI group, Craigslist, BP, look in your local newspaper for bank foreclosures and date they will be auctioned off on county court steps, wholesalers, yellow letters, just to name a few there are several more strategies to find pre-market deals. 

Could I get a mortgage for 30K or less or does it have to be a minimum amount for it to be worth the banks time? Yes, you can get a mortgage for $30k or less Citi is actually doing one right now he closed in less than a month for a BP member on one of my homes. Or you can always work on other creative methods like owner financing and or Private lending.

Is there a way to get to all of the MLS listings without being a realtor? Yes, there is you have to be really good friends with one LOL!!!

On foreclosures, would I have to go to the county court & get the title of the property to make sure it's clean? You can get a title search done and get title insurance from a title company when you close on the property it covers you if any liens were to come up after you purchase the property 

Good Luck and Happy Investing!!!

Derrick Craig