All Forum Posts by: Patrick Padovano
Patrick Padovano has started 2 posts and replied 6 times.
Post: Building investment prop, what account should I make draws from?
- Posts 6
- Votes 2
Quote from @Benjamin Weinhart:
Piggy-backing off of Zach a little, it's very useful to have a business checking account for organizational purposes. I'd suggest looking for one with low-no fees as you're getting started out. You may also find it useful to get a business credit card as well for the same reason.
Post: Building investment prop, what account should I make draws from?
- Posts 6
- Votes 2
Quote from @Account Closed:
Quote from @Patrick Padovano:
I’m building my first rental property on a piece of raw land I recently bought under my name. I plan to eventually transfer it into an llc I created once it is rented, and refinanced. Would it still make sense to open a business account through my llc to make the draws for the build, or does it really matter. I may also need to take out a small loan/line of credit to complete the house, depending on how far my money stretches. Any advice or information is much appreciated! Thanks
Having a business bank account allows for clear separation of business and personal expenses. I would strongly recommend creating one to ensure everything is neatly organized and you don't get flagged by accidently writing off personal expenses.
As for the line of credit, that being in your name is OK. In the beginning its common place to take debt under their name to start off.
Post: Building first rental property. Any advice welcomed
- Posts 6
- Votes 2
Quote from @Nathan Gesner:
Quote from @Patrick Padovano:
Since your father is helping you build, I assume you can build the home cheaper than if you hired an outsider, which means it may cash flow nicely. Here's a guide that describes what good cash flow looks like and how to analyze a property.
https://www.biggerpockets.com/blog/rental-property-cash-flow...
Post: Building first rental property. Any advice welcomed
- Posts 6
- Votes 2
Quote from @Tim Ryan:
Good luck building your new rental. Every time I've looked into building to rent the numbers did not make sense. I would sell the new build, but to hold as a rental, just didn't make sense. Buying existing rentals and improving it is another story.
Post: Building investment prop, what account should I make draws from?
- Posts 6
- Votes 2
I’m building my first rental property on a piece of raw land I recently bought under my name. I plan to eventually transfer it into an llc I created once it is rented, and refinanced. Would it still make sense to open a business account through my llc to make the draws for the build, or does it really matter. I may also need to take out a small loan/line of credit to complete the house, depending on how far my money stretches. Any advice or information is much appreciated! Thanks
Post: Building first rental property. Any advice welcomed
- Posts 6
- Votes 2
I currently own my primary residence and recently decided to buy a piece of raw land where my father’s construction company is, and with his help, build a single family home on it which will become a long term rental when completed. I originally created an llc to purchase the land, however decided after to buy it in my name and transfer into the llc after the house is built, rented, and refinanced. I may or may not need to take out a small construction loan along the way, depending on how expensive things get. I’m very new to all of this so any advice on things would be greatly appreciated. Thanks everyone!