All Forum Posts by: Nicholas Mahon

William Howley , thanks so much for the update. I've seen many of the points you've made in my research. Especially the simplicity and benefit of just getting an umbrella policy for someone just starting out. Closing on our first place (condo) in a month so excited to start down the property owner path! Thanks again for the info!

@Brett Goldsmith, that is such good advice. Seems like I should have thought of that. I'll give it a go!

Hi there BP Carebears,

I'm a first time homebuyer looking to buy in the Brooklyn/NYC area. Obviously the possible deep discounts offered by short sales are appealing in such an expensive market. Though I have read allot about the headaches of this path and maybe this isn't the best for a first time homebuyer. But I am curious about it.

One challenge is that it seems like most real estate agents don't deal with short sales or foreclosures. Does anyone know of any good agents in BK that work on these? 

Thanks in advance for your thoughts!

Nicholas

Thanks so much for the thoughts @William Howley and @Jerry Padilla. Interesting perspective on the topic. Even @Jeffrey S. Breglio who seems to be an advocate for LLC was suggesting not going that route if I'm using one of the units as my primary residence.

Thanks for taking the time guys!

Hi BP Carebears!

I've asked a few questions on BP gearing up to buying my first owner occupied rental property and everyone has been very helpful. I'm hoping to purchase in Jersey City, NJ and am looking for recommendations for the following:

- RE Tax advisor: ensure I'm doing everything I can to maximize my tax situation regarding the purchase and operation.

- RE attorney: discuss whether or not forming a series LLC is right for me.

- Financial Planner: Again, just want to make sure I'm doing everything right.

I'd appreciate any recommendations you may have for people you've worked with that you like and who understand the specifics of RE investing. A couple people have already suggested an attorney to me, but more names the better!

Thanks in advance everyone,

Nicholas

Thanks so much @Brian C., @Matthew Fullam and @Kevin K.  I really appreciate the tips. 

Kevin, this is an interesting thought. Part of the reason for me wanting to talk to a lawyer is not just to set up the LLC but also to get a consultation on if this is right for me and what kind would be right. One BP pod episode talked about setting up a series LLC and separate sub-entities for acquisitions, flips and operations. I wondered if there were advantages to making my wife a 1% partner in the LLC. If there is a benefit to this regarding asset protection or anything else. I've done a little bit of research on this but I'm wanting an experienced pro to look at my specific situation to advise.

I'm also looking to figure out how I can maximize the situation regarding taxes. I have a tax prep guy that I like but doesn't look like he's a CPA. Is a CPA who I should talk to regarding the tax aspect? Or would it be a tax consultant? Or a financial planner?

Hi BP Carebears!

Does anyone in N Jersey (jersey city, Hoboken) know of any good RE attorneys? I'm lining up my ducks to get into my first purchase and wanted advice on series LLC formation.

Thanks!

Nicholas

Thanks @Paul C.. It's a good question about Bergen Lafayette. I'm drawn to it because of the combination of a decent inventory of nice brick homes for low prices as well as appreciation. Journal Square is a hot area and a good investment, but homes are pricier and there's allot of back architecture, crappy vinyl. I'm aware Berg is rougher, but it's getting better. However I haven't spent a ton of time there so am a self-admitted novice and am curious about your experiences with the area. What area do you live in?

Thanks for your thoughts everyone! Still not sure if I'll go this route, just trying to find a way to make this work and get creative. I've also read articles that tout the advantage of paying off the principle asap to increase cashflow. But I don't imagine keeping these properties for the full length of the mortgage. And trying to pay off the mortgage sooner with these properties would likely cost me money every month, which is not an option for me.

Hi BP Carebears!

I'm looking at purchasing my first multi-fam rental property to create cashflow. The area is the Jersey City, which has pretty low prices considering its proximity to NYC and values will be climbing significantly in the next 5-10 years. However, when I put these homes through the handy-dandy BP Cashflow Calculator, the cashflow seems to range from -$100 to +$100, with cap rates very low. Here are the reasons I think this is happening:

- I'm trying to only do 3.5% down (FHA), which elevates my monthly expenses.

- Although prices are low, rents in the Bergen-Lafayette neighborhood are also still low.

- High property taxes in NJ

The first time homebuyers assistance program that I'm considering working with, MAHNY Management, is able to get 40 year loans to help people lower their monthly. When I redo the cashflow calc with a 40 year mortgage, it really helps the numbers.

My question to you guys is, what are your thoughts/experience with 40 year loans? I know you spend allot more in interest, but I'm not planning on keeping this home that long. Maybe selling in 5-10. This seems like a good way to go, but I'm pretty unexperienced and need the input of smarty pants.

Thanks in advance everyone for taking the time.

Best,

Nicholas