All Forum Posts by: Pathik P.

@Stanley Bronstein In that case would escrowing taxes and insurance only apply if you didn't have 20% down payment? Like PMI. For traditional/conventional loan situations, as a buyer, do I have to find the title company and escrow company or is that an obligation of the seller? (Assume we both have to agree upon the company) is there a responsible party for finding the company?

@Namit Salwan go for the multi units. BRRRR it. Buy one that is undervalued. Put some rehab work into it to raise its value. Rent it out. Appraise and Refinance it to get 70% ARV back, and still get your monthly cash flow. Then repeat!

@Brent Coombs, 4 years late here, but your response is related to my exact situation right now. I'm setting the strategic groundwork for my MMLLC to expand quickly in REI. I know we're limited to only getting commercial loans from a bank/credit union since we're an LLC. I know there are options out there like HML, Private Money Lenders, Portfolio Lenders, and the least favorable big banks.

I really want to make sure I kick off our BRRRR process properly. We don't have the cash to buy our first property out right. Conventional won't work in our case because of the mentioned LLC. Can this BRRRR still work with a commercial loan? Would it all come down to making sure we find a proper deal with great rise in appraisal after rehabbing? I think this is the last thing I'm stuck on before I can hit the ground running and get out of planning phase.

Hi @Chris Connery look like a lot of your answers actually are in line with what I'm searching about. I recently formed an LLC with 2 other members for REI buy and hold. We're just starting out and trying to find a lender we can build a long term relationship with as we grow and accumulate more properties. For now we're starting off with SFH, but want to eventually get into multiplexes and commercial properties at some point.

I saw some of your recommendations, was curious if you had a go-to lender for starting off. We're in Middlesex County.

Hi @Stephanie P. I'll jump in on this. I've created an LLC for rental properties and am setting the groundwork for financing to get the ball rolling. The members and I are looking for a lender that would a lender that we can build a long term relationship with as we continue to acquire more properties. Our first property is going to be a SFH, but we would like to expand to multi units and possibly commercial properties at some point.

Would you happen to know any in NJ that we can reach out to? We're doing our due diligence as well in reaching out to all options (traditional banks, community banks, credit unions, online options, etc). I'm aware that typical commercial loans (since we can only get that type as an LLC) are usually 25% downpayment and 20 yr.

I appreciate any help and insight. 

Hey all, I'm fairly new to BP and getting into REI in Middlesex County. I'm working along with my brother and brother-in-law to kick off a buy and hold strategy. Does anyone have recommendations for:

- Lenders (Commercial, Portfolio, Private Money)
- General Contractors for sporadic work
- CPA and attorney

Just laying the groundwork for ourselves. 

@Lawrence Rutkowski asking out of curiosity. Isn't the move to go to S-Corp status simply for the purpose of reducing the self-employment taxes (which we wouldn't pay anyway with passive income from rental property)?

I've been trying to ready up and study up on this myself lately and am still trying to get a clear cut delineation of LLC and S-Corp. Pros, Cons, etc.