All Forum Posts by: Ryan Holland

@Gene Dru I didn't end up investing with ABC Capital. I've been working on establishing a team of vendors (contractors, property managers, wholesalers) in the areas i'm interested in.

I recently purchased a property using financing from a hard money lender. This was for a BRRRR deal. The renovations were completed this week and the hard money lender is no longer offering long-term loans. I've spoken with numerous hard money lenders at this point and it seems like all of them have suspended their refinance programs.

@Mark S. Have you received any income yet? I'm curious to hear how this has been working out for you.

Hi Hannah,

Welcome to bigger pockets. I am a real estate agent and investor in Palo Alto. I'd be happy to talk to you about East Palo Alto real estate if you are still looking for someone to answer your questions. 

@Steve Vaughan

I am hoping to (1) build a portfolio of rental properties (2) start a property development business. I intend to purchase the portfolio of rental properties first, but I want to make sure that I am able to secure business loans when I am ready to start a new business venture. My understanding is that most commercial lenders are going to look at an LLC's payment history, how long the company has been in business, assets, etc.

I am interested in the possibility of transferring a rental property into an LLC so that I have a better chance at securing a commercial loan by the time I am ready to take on a development or renovation project. It seems to me that it would be worth the $800/year to open an LLC if it helps me secure business loans 2-3 years down the road. Does this strategy make sense to you?

It sounds like the DST is a great way hold numerous rental properties due to its asset protection purposes. I would certainly be interested in opening a DST if I owned more properties, but it seems expensive for those who own fewer than 10 properties. @Scott Smith Can you comment on the process of securing business loans through a DST?

@Scott Smith

Thanks for the information about the DST. I need to do more research to determine if this is the right entity structure for me. I definitely plan to scale up and purchase more properties going forward. It would be great if I can avoid opening a new LLC every time I want to purchase a new property.

Do you have a ballpark estimate for the cost of opening a DST?

@Katie L.

Thank you for your input. It sounds like it will be easiest to open a CA LLC if i'd like to start building credit.

I am interested in opening an LLC in order to build credit for future real estate investments. I've read online about the benefits of opening LLCs in Wyoming but I still have several unanswered questions.

1. If I open a Wyoming LLC and transfer ownership of my Texas property to the LLC, will I have to register the business in Texas? The goal of transferring title to the LLC would be partially for asset protection, but mainly to establish payment history and credit for future investments.

2. If I incur business expenses in California will I have to register the LLC in California? California appears to charge $800 for the LLC annual fee so I want to make sure I wouldn't be required to pay that.

3. How does the state income tax work for those living outside Wyoming? Will I have to pay California state income tax since I live in California and Wyoming LLCs are pass through entities? Would it be possible to keep the LLCs earnings in the LLCs bank account until I move to another state with lower taxes?

Once again, the purpose of the LLC is mainly to build business credit, so any input on how to accomplish that with minimal expense would be appreciated. I figured I could begin this process by transferring my mortgage (hopefully they will allow the transfer if I personally guarantee the loan) to an LLC and making consistent payments.

@Keith Thompson thanks for opening this thread. I am curious to hear about your experience with the tax lien auctions. What interest rates were most properties being bid down to? Were you ever able to talk to an attorney about the tax lien process? It would be great if we should get this thread going again as there are several Colorado counties that will be holding their auctions in the next two weeks.

@Matthew Holland

@Michael Mostrel

Hey Peter,

All agents need a handyman to help their buyers and sellers. The inspection reports that are provided during the sale ALWAYS highlight issues in the house and buyers typically want to get those issues addressed as soon as they close escrow. 

What area are you located in?