All Forum Posts by: Samuel Turner

Yup, SXSW and ACL draw a lot of people every year. The music/food/film scenes in general draw people constantly. Plus, UT is a major institution. The city is a very forward-thinking community, for Texas at least. 

Master subleasing seems like an interesting idea. I see it as a potential part of a diversified real estate portfolio, especially here in south Texas. We get a lot of winter Texans during our "cold" months who may desire someone that can take over their vacant property or landlord/leasing obligations while they are away. Are you looking into it because of the apparent ease of entry? Looks like you wouldn't need a lot of start-up capital for this strategy. I saw in your profile that you were looking to raise money for deal(s). Have you looked into Brandon's book on buying property with no and low money down? 

Podcast: https://www.biggerpockets.com/renewsblog/2014/10/1...

Book link: http://get.biggerpockets.com/nomoneydown/

Personally I like the idea of owning the real estate. With the master subleasing, you seem to be tying one hand behind your back on your path to wealth. Without ownership in the property, you miss out on the tax advantages, the appreciation, the ability to borrow against your equity, etc. I think master subleasing could be a piece of the puzzle, but I personally wouldn't make it my focus. To each his or her own, though. If you plan on moving around a lot, it could be a great way to keep yourself liquid and cashflowing as you hop from city to city. Or maybe it's a way to start accruing cash for those deal(s) you're looking for. If it gets you some cash and experience, I say go for it @Tiffany Pasillas

@Tiffany Pasillas I'll be renting it out traditionally and managing myself. I have a pretty demanding 9 to 5 (more like 7:30 to 5:30), but I think I can handle it for now. I'm hoping to bring my girlfriend on board to help manage and show some of the rental properties when I can't get away from my desk job. The plan is to add a couple more houses this year. One house-hack via a traditional loan. The other I will purchase from my dad using seller-financing, though that one is still a bit up in the air. I haven't really looked into any management companies here in town since I only have to worry about the one rental property at the moment. If all goes to plan, I think I can manage the two or three on my own (with the help of my girlfriend). Hopefully, we'll be a good enough team to self-manage for quite a while. Are you managing yourself? 

I share your interest in Austin. My mom lives there for about 6 months out of the year, so I may look to buy her out of her house in the coming years. Check out Brandon's article on the BRRRR strategy, specifically the sub-section titled "How to make $100k Per Year with BRRRR" (after step 5). 

https://www.biggerpockets.com/renewsblog/2015/04/2...

It could be a pretty profitable option for the Austin market "before prices get too up there." Austin is definitely a popular place!

I'm not too familiar with master subleasing. Do you have any articles you can link to? I love learning about new stuff! 

@Tiffany Pasillas Mine is in the Bay Area...Pope Park area to be more precise. It took some patience, but I finally found a great deal. So many hours on Zillow and BP, but it was definitely worth it. I haven't been to any of the REIA meetups, but I may be interested. Are you interested in investing in town? Or are you partial to Calallen?

@Tiffany Pasillas Welcome to BP! Nice to see another Corpus local on here. I'm just starting out too...wrapping up my first BRRRR. I've been sort of stumbling through the process on my own (with the help of BP, of course). I don't have any real estate mentor to speak of, so I've mainly tried to pick up as much knowledge as possible from my real estate agent, my contractor, and the BP community in general. I'll be following your thread, as I am also interested in a local real estate mentor, long term buy/hold SFR and multi-family units, as well as fix and flips. Good luck and happy (deal) hunting!

Awesome stuff! Thanks again @Jeffrey H. 

Thanks for the additional info @Drew Shirley

Some more great info! Thanks very much @Jeffrey H.

Can you cite some of your favorite books on the "management LLC" topic? I'm very interested.

Great info @Drew Shirley Thanks for your input!

Can you elaborate as to why I'd want this property in an LLC rather than my own name. Since you are are an attorney, maybe you can focus on the liability side of things. A professor of mine in college used to encourage me to use thinly-capitalized LLCs to mitigate any loss from a lawsuit. Do you have any experience in such things?  

Hello all,

I'm a newbie at the rent/refinance stage of my first BRRRR in Corpus Christi, Texas, and I'm wondering what my best course of action is for the property. The house was bought with cash from a private lender, and the title is under my name. I'm still searching for tenants. I've been told by bankers/mortgage agencies that my cash-out refinance will have to come via an investment loan rather than an owner-occupied A6 cash-out, as I am not actually living in the property. My question is: should I create an LLC and transfer the property into the LLC before I refinance or after I refinance? I've heard Brandon talk about the due on sale clause written into loans and am thinking that I can avoid that by rolling the property into an LLC while I still have full ownership in my name. And ultimately if I'm already looking at an investment loan rather than an owner-occupied refinance, what are the advantages/disadvantages of leaving property in my name vs rolling into an LLC? My main concerns are tax benefits, ability to refinance/obtain a loan against the property, liability issues, etc.

Thanks in advance!

Sam

Thanks very much everybody. Feeling the love!