All Forum Posts by: Max McQueen

Quote from @Max McQueen:

Hey BP Family, I'd love your insight on this.

I'm currently weighing two intriguing options: house-hacking a 4-plex or venturing into the realm of MTR with a single-family home or duplex, particularly for renting to travel nurses. While the former presents a classic investment opportunity, the latter has caught my eye for its unique and potentially lucrative approach.

As someone relatively new to this field, I'm aware that there might be aspects I haven't consid or opportunities  overlooking. Your insights, advice, and recommendations would be invaluable to me in this decision-making process.

Thanks!

 We own a duplex, 3/1.5 and 2/1. They were both on LT rentals. Last year we reno'd the 3/1.5 and listed it as a 30+day rental. It's been a very successful transition. We intend to do the same with the 2/1 at the end of its current lease. 

Something to consider..going after travel nurses is only 1 demographic to consider. Ours has been full with people moving to the area looking to buy. Supply is so tight, they need temp space that will give them time find and close on their purchase. All of our guests so far are in this category. Corporate travel, divorce, etc. are other potential tenants.

If costs in your market allow, I would encourage a duplex purchase vs SF...potentially 2 income streams vs 1 would help offset the extra cost of a duplex.  Good luck

I have my properties in an LLC, but keep in mind when purchasing a property in an LLC you cannot use conventional financing, as Alecia said. So if you wanted to purchase a rental property using an FHA or VA loan, you'd need to put that in your name. If you want a bank loan for a property that will be in an LLC, it will be a commercial loan.

@Max McQueen

I would start a banking relationship with an institution that also lends on my target properties. Call around and see who lends on the properties you want to purchase, and open an account there.

@Max McQueen Figure out what types of properties you want to buy then find a bank that will lend money in those to an LLC.

I've done all sorts of loans with my smaller local bank from SFH to 8 unit deals to many In between but in my personal name. They won't lend to LLC with conventional financing.

Quote from @Alecia Loveless:

@Max McQueen Figure out what types of properties you want to buy then find a bank that will lend money in those to an LLC.

I've done all sorts of loans with my smaller local bank from SFH to 8 unit deals to many In between but in my personal name. They won't lend to LLC with conventional financing.

Interesing, I have some properties held the same way but only because when we bought them they were for personal interest not investment. What is your strategy fro protecting yourself if something were to happen? Im just a newbie soaking up information.

I would recommend starting out with a local bank you are close to. Some like to pick local bank/credit unions where they will be investing. Having your account at the same bank you will be looking to get money from can have advantages as well. Building a relationship and the banks trust in you can help out some when getting mortgages.  

Quote from @Max McQueen:

Hello BiggerPockets Community,

I'm kicking off the new year with an exciting venture: I've just established my own real estate investment LLC!

I'm currently exploring banking options that align well with this specific niche. The choices are overwhelming: should I opt for a local bank, a smaller institution, a major bank, or perhaps an online bank? My business strategy is geared towards scaling a large portfolio with a focus on buy-and-hold investments.

Any recommendations or advice from your experiences would be immensely appreciated. Thank you!

 Align well with this specific niche? What niche would that be?

@Max McQueen

Its just a bank account.  Don't go crazy as I'm seen some investors.  If you can, just use whatever bank with which you currently have a banking relationship.  This will let you manage everything from one app/online account.  You can move funds as necessary (do it correctly to protect your corporate veil) very easily.