All Forum Posts by: Rob Krin

@Josh Pass I'm taking a very similar path as you.  Heard Clayton on a podcast, peaked my interest and got the fire under me.  Good luck with your journey just keep your eye on the prize.  I haven't pulled the trigger yet but expecting to real soon.  I'm real interested to hear about your continued progress.

awesome work. #jealous

 Many thanks for taking the time to review.  I made the changes and the #s look better but not great. High interest and points really throw it all out of whack.  I'll keep digging through.  

@Philip Pape makes sense.  Thank you.  Those are the types of # I've been trying to understand.  Hopefully If I'm cashflowing the right amount (+potential appreciation), it will make up for those costs long term.  So, how do I feature that in the BRRRR calculator? I've attached a deal (you'll need to zoom in to read) I was thinking about with those same assumptions.  These #s dont seem to work - am I doing something incorrectly?

Hi All

Hopefully you can follow along with me on my journey here.

I'm feeling the analysis paralysis creep upon me now.  I've now changed my mind on my approach and pivoted my strategy several times so I'm getting worried I might be over analyzing.  Or am I taking the right steps?

Regardless, I'm looking at some financing options for my first buy and hold.  First I thought cheap properties so no problem with me financing them myself.

Then I thought there is no long term sustainability in cheaper properties.

Then I looked at more expensive markets and started evaluating turnkey providers.  This is working out well, just trying to make my #s work.

Then on sidebar, I thought about corporate structure for the corporation.... I don't have yet. After speaking with my accountant and several investors, I got that nailed for the short term. LLC then figure the rest out later.

Now, all that behind me I'm trying to figure out where to find the money to fund my project. I can use my money, take a loan against my 401k, or HELOC against my house or against my only investment property. I need to find the balance my family is comfortable with.

Now, long story short I started thinking about hard money lenders.  Thinking if I borrow 70% for property and rehab then refinance after 6-9 months, I can pay back the loan with equity instantly built.  What fees do I need to know about? How is interest calculated?  Would it be loan x 12% (eg 100k loan + 12% = $112k back to lender?).

Any insights, advice, direction, comments, thoughts, feedback, wisdom, perceptions or sagaciousness would be greatly appreciated.

Regards, 

Rob

@David Dachtera - any assistance would be appreciated.  thank you!

@David Dachtera - this makes a lot of sense.  I'll need to talk to an accountant - not sure if I'll be using the one that gave me the initial advice even though his practice has been helping my family for over 30 years.  Thanks for the advice.

@Jerry Padilla - I'm very interested in hearing more about the types of financing available with an LLC. Feel free to PM me.

Thanks

Rob

@Gerald Demers- thank you for all the insight.  I think I definitely need to do some more investigation.  

@Steven Hamilton II - very good advice and thanks for looking out.

@Dan Schwartz - I will research this now.

So should I have everything set up correctly now or wait until I have the first rental under my belt?

Many thanks to you all for taking the time to answer my question that is causing some confusion for me,

Hi BP Community

Rob from Central NJ here.

So I'm wondering if this question is a bit pre-mature considering I haven't bought my first proper investment property yet. I own 1 rental in a 55+ but it is occupied by my wife's family so therefore I have virtually no cashflow. (I should get credit for this BTW).

My accountant highly recommended we set up an S-Corp and have 1 S-Corp per rental property we own (when we own them). I understand why he is saying 1 per property to reduce liability, protect all my assets, take advantage of the tax benefits etc. however this led me to so many more questions that I'm hoping I can find answers to:

- Why S-corp over LLC - when I run my #s, I find it hard to make them work with additional S-corp registration and filing fees. Most of what I'm reading recommends an LLC for rental properties. I'm not sure I'm clear on what the benefits are of one vs the other.

- I'm planning to finance my deals through bank loans should they make sense. I'm assuming I can't take out a conventional loan under a corporation and it must be in my personal name. If so, how do I move the personal loan in to the corporation so I am protected by the corporation?

- What is best practice for setting up a buy and hold real estate business?

- Do I need to think about this now or wait until I have a few properties under my belt?

I look forward to hearing some ideas, strategies, feedback and input from the community. Thanks in advance for your help!

Rob