All Forum Posts by: Sam Shah

Wow! Thank you all so much for all the feedback provided. This community is amazing and I really appreciate your response. 

It sounds like purchasing the property under my LLC from the get go makes the most sense and less risky.

I’m also going to shop around for better deals as 5.X definitely seems very high. We are talking about a $1.1M property here. My credit is excellent. We also have other 5 units properties we manage so all that should help us get better rate I’d think. 

Thanks again everyone! 

We have an 8 units (2 buildings with 4 units each) that we plan to purchase. Two options we are considering

1. buy them under personal name at interest rate of around 3.X

2. Buy them under LLC but then it will be considered commercial loan and interest rate bump up to 5.X

Question that I have is that for liability reason, I'd prefer getting the loan under LLC. I was told by one of the loan office that I could possible close under my personal name to take advantage of the lower rate and then move the deed over to my LLC later.

What I need help with is if someone can advise about this strategy. Would this work? Do you see any issues with this approach? Would you recommend doing this?

any downsides you see doing it this way?

I really appreciate any help someone can provide on this

Thanks

Saumil

@Matt Caven

I'm a local investor in Poughkeepsie area (as well as another state). I would be very interested in this interviews you're conducting. I would be interested in talking about various tax strategies when it comes to real estate as well as what are the most important value-add they look for when considering a property for investments. 

@Silvia Camponelli

Yes he's charging 10%. We literally just took over the property last month so I don't have too much info on this but I believe where we are, it's pretty safe neighborhood. Let's hope it stays that way :) (Fingers crossed). Maybe ask me 6 months later?

Thanks guys for your input. I do feel this is wrong but unfortunately it's in the contract and my PM says that laws are different in every state. We're in East Hartford, CT for this specific property and yes we're absentee owner. We live upstate NY.

He did say that collecting late rent payment fee should be an exception and not the norm and that they don't really enjoy collecting them. 

For now, I've told him that I guess we have no choice but to see what the trend is over the next few months and see how it goes. 

Thanks again for all your input. Really appreciate the BP community.

Hi Everyone,

I'm a new landlord who just bought few multi-family properties. One of them is in Hartford, CT. My PM is telling me that he just collected few late payments and charged $50/tenant for being late. Now, he's saying that he gets to keep the whole $50. Is this standard practice? 

I wasn't aware that PM company gets to keep the whole amount. But I could be wrong. Please let me know.

Thanks

I highly recommend Mike Farley at https://www.farleylaw.com/

Can someone clarify the difference between site surveys vs environmental survey? When are they required? I'm dealing with two types of properties. One that has two separate parcels (one of them is 3 units and the other is 2 units) and I have another property I'm looking at that's one parcel with 5 units. 

How do I know which is required for which property?

@David Flanders

I am working on something that will make this easy for you. Stay tuned :)

Thanks @Michael Noto. That's helpful. I'll discuss this with my attorney. It seems that the seller has already accepted another offer but this advise is still useful. 

Are you familiar with Hartford market? I'd love to get in touch and discuss more about the area.

Thanks again!