All Forum Posts by: Wesley W.

Thanks, Michael!

I'm not quite sure I follow. When I talked to an attorney, they said an LLC would take 6-8 weeks to set up. If I were purchasing a property the "traditional" way (via realtor, offer, negotiations, closing) I would have the time, but if were to buy a property at auction - let's say - then that's not enough time. Is there any harm is setting up the LLC ahead of time before "shopping"?

Also - who needs to know (and when) that the LLC is purchasing the property, not me?

In this instance, I assume, the fees/taxes for the two transactions was worth the calculated risk? I've always heard the banks are a bit laissez faire as long as the mortgage is being paid, but this being my first venture hopefully you can understand my worry about that happening.

Thanks for the quick reply - thus our dilemma. What do we do? Surely our situation cannot be unique..

Thanks again for any help!

Greetings All!

I’m brand new to the forums as well as being brand new to the business. I’m really looking forward learning from the collective wisdom from the members of BiggerPockets; someday I hope to be able to provide the same assistance to future newbies. As I am sure many of you can relate, I have (and will have) a number of questions as I approach my first deal.

My wife and I are looking at starting our foray into real estate investing by purchasing some rental property (single family or duplex, probably) and becoming landlords.

We'd like to set up an LLC. In talking to our CPA, our understanding is that a married couple is considered one entity, so we could set up the business as "multiple members" and "disregarded" which would give us the least headaches as far as tax returns and income reporting (we currently file our personal returns jointly).

I have few questions that I would really appreciate everyone’s help with:

First - would you recommend setting up the LLC before or after buying the property? Setting it up beforehand would avoid having to do two transactions and the commensurate fees/taxes (one to buy the property personally, another to transfer it to the LLC), but I'm afraid it would create issues with financing, i.e. the bank would consider it a "commercial loan" with all of the appropriate interest rate hikes and LTV restrictions.

We both have excellent credit, and would like to finance this first deal with the equity in our home (and take advantage of the extremely low rates right now), but we're not sure how to do this with the LLC. We want to be protected, but don't want to pay those exorbitant commercial rates when we have equity to use. What do you think?

I assume many of you out there have encountered a similar problem when first starting out, so I’m hopeful you have some suggestions and advice for someone following in your footsteps.

Thank you in advance for all of your input,

Wesley

Hello all - my name is Wesley and I am from the Albany/Schenectady/Troy area in upstate NY. My wife and I are looking into purchasing some rental properties (one, to start and get our feet wet!) and would like to learn from the collective experience on these forums. I've done a lot of reading/listening on real estate investing, and as we slowly compile our team and get ready for our first deal could really use some advice from the numerous questions we have and will have!

I'm looking forward to being part of the community and beginning a successful business.