All Forum Posts by: Oleg Shalumov

@Nathan Birkedal banks usually do not like to give money to LLC for residential properties. You did not specify if this Multifamily property is under 5 units or not. If it is a commercial property, then you should not have a problem forming an LLC and getting a commercial loan.

@Account Closed I would agree with majority here that second inspection  would good enough here. 

@Laurent Meyer narrow down to the area (state/city) where you want to buy, then try to locate all the commercial brokers in the area and start calling/emailing them. 

 I use Chase as I have Private Client privileges and they do not charge me any monthly fees. 

But you could use any bank that would not charge you any fees. Specially you would have one account with deposit only (which is probably under $1K). I would recommend any small local bank. 

Talking about security deposit ... many landlords nowadays do not take security deposits and charge un-refundable moving fee - It is less hassle.

@Sarina Drucker welcome to BP and congrats on making the next step on you RE career. 

There is a lot of info here on BP, but I would recommend you to read the book “Long Distance Real Estate Investing” by David Greene who specifically addresses the question of buy and managing out of state properties. 

@Derek Robinson you may consider investing in stock market (index fund), mutual fund to have truly passive investing (even that I think you still need to keep an eye on it).

Alternatively, we have investors who are truly passive when they invest into syndication with us - this maybe also something for you to take a look into.

@Tyler Mundy you can avoid forming this a syndication and spending extra thousands of dollars in fee - if the person providing private money loan can be an active investor. Active investor means a partner who have defined role in the new partnership. In this case this could be setup as JV (Join Venture), but you would need to make sure your attorney defines roles of each partner in the agreement.

Also most of the banks would at least ask for 25% (sometimes even 30%) down which more usual for commercial properties.

For 70+ units you also have other people in addition to property Managment you are paying for. For 25-50 unit you PM will do everything and that is why you pay 8-10%

@Jim Peckey Cozy is one of the best out there. For the account you would need at least 3: 

o Operating account

o Capital improvements account

o Security deposits 

@Mal K. I would recommend using “Line of Credit” on the 3 units instead of cash refinance as it is faster, cheaper and more convenient.