All Forum Posts by: Patrick I.

@Brennon Wright Welcome Brennon.

I have started my journey not so long ago but I could share some key point with you:

1. Education is the first thing that can make or break you. You have to keep educating yourself, not only on how to buy and run a rental but also on taxes and strategies.

2. Network is the second thing that can make you or break you. Be sure to surround yourself with people that have your best interest (realtor, contractor, mortgage officer, etc.). They will look out for you and you will do the same for them.

Your first purchase is going to be special both emotionally and financially and you will learn a lot from it.

Good Luck and Thank you for your service (hope I got that right)

@Reed Gallagher Welcome. One way to have some directions about what you need to accomplish to be financially ready is to talk with a mortgage lender. They will tell you all you need to be and have in order to qualify for a mortgage (using a mortgage for a first property is the route most investors take). There are many programs for low money down to help you get started. Be sure to talk to at least 2 to 3 different persons in different banks (small and large). I am sure the community has more to share with you. Good Luck

@Bryan Williamson A disclaimer first: I am no attorney or financial expert/consultant, so please don't take my response as legal advice or indication that you should act in one way or the other.

Now to answer your question: this question have been debated a loooooooooottttttt in BP. In choosing which options is best, you may want to look at what is feasible and what is not. You could hold the properties under your name and get some good liability and umbrella coverage. That is what most starter in REI do. That is what I do because it is easier and simpler for now and I am not worth millions, so attorneys may not have any incentive to drag me into court if there is any issue. You could also hold the property in a LLC, which would require you to transfer to deed to the LLC, which could trigger the due on sale close on the loan you took from the bank (you could ask permission from the bank to do the transfer and may be fine with it).

The best way to go about this depends on the person. So you will have to review all the pros and cons and decide what is best for your case.

Good Luck

@Femi Ibrahim I understand you are worrying about the maximum number of loans you can have and you are thinking about solutions. That is great. But I have to tell you that it is something that you should not worry about. Just get started, get your first properties(s) and educate yourself and you will realize that there are many ways to go around this limitation. As you educate yourself, you will learn of financing options that do not require a bank at all. Just get started and keep educating yourself and have no worry about the limit. Good Luck

@Darren Cusanelli I hope you like reading (460 and some pages) because I would suggest you get the NOLO "Every Landlord's Tax Deduction Guide". The book gives you a wealth of information spanning from the time you get ready to go in business, to when you are in business and also gives you some strategies.  I read the BP " tax strategies for the savvy real estate investor" but found that I could not use most of the strategies yet. But they are definitely great strategies. Good Luck

@Scott Von Niederhausern Maybe sharing the location of the property will help the community who have better knowledge of that market help you. Selling price information will be nice to have too. Do you have experience with fixer upper? The more information you give, the better the community can help. Good Luck

@Ivan Ponce de León I may not be the right person to help you, but It would be nice if you could provide more information about the property so that the people that are best suited can help. For example, in which state and area is the property? Is it a house, condo, multifamily? How many rooms/bath?.... 

@Leticia Ellis Welcome. You have made a great decision. I am sure you will find plenty of help on this forum. Good Luck

@Suly B. Congrats on your move

@Jordan White That is a good idea and I do the same for my tenants, assuming they are all paying rents and keep the units in good shape. Just be aware that some may try to take advantage of your kindness afterwards. Remember to be firm, follow the law and your policies. Also, I believe you are able to deduct up to $20 or $25 dollar off your taxes. Good Luck