All Forum Posts by: Samuel S.

Hey BP Folks,

So I'm in the process of setting up a syndication deal, where 6 investors and I would all be putting in $15K ($105K total).  The investors' funds will come from either their SDIRA's or cash.    

The plan is to buy a duplex all cash, utilize the cash out refinance strategy (probably via the delayed financing exemption) and then rinse and repeat until we cannot acquire anymore loans, at which point we would look to bring on partners.

My question is, would this be the most cost effective option when pooling funds? Or would it be a better idea to try and get 3-4 conventional loans (25% down on each)?  In my mind, the cash out refi strategy seems quicker, and you could also bypass a significant amount of closing costs.

Would greatly appreciate any input!!

Hey BP folks,

Was hoping I could get some advice on what the main difference is between a subject-to, and a land contract?  If a motivated seller has a property that's been on the market for awhile, what would entice them to agree to a subject-to? To my understanding, I would be taking over their existing mortgage, but how would they receive the cash payout from selling the home?  Would greatly appreciate any input!! 

Thanks guys! Again I so appreciate your help!

I do have one more question (I apologize if this seems redundant): Say I were to go conventional instead of FHA, where I would be renting out all units. Would my best option be to get landlord insurance with a umbrella policy? Being that I wouldn't need homeowners since I would not be living there?

Thanks Michaelina!

So I would really only need the homeowners and umbrella policy then?  Since if the renters were to sue due to theft, loss, etc, I would have an umbrella policy in place for that?  I am just curious on why I hear a lot about renters insurance and why its necessary to have.. 

Thanks Josh!! Really appreciate the input, definitely clarified things for me.

I agree that an LLC would be much too cumbersome in a house hacking situation.

Just seems that either way the insurance portion will be somewhat complex, in the event that I would need to get homeowners, rental, AND umbrella insurance. 

Hey BP Folks,

So I am in the process of acquiring my first rental property, and was hoping to get some input on the below questions. I will be using an FHA loan to purchase a 3 unit property, where I will be living in one of the units (until FHA requirements are met, then rent out). The other 2 units are currently rented out.

My questions are:

• Will I need to get renters insurance AND homeowners insurance?
• Will I have the ability to transfer the title into an LLC, once the property purchased? If not, would it make sense to just get an umbrella policy? But if I got an umbrella policy, would I still need to have renters and/or homeowners insurance?

Would greatly appreciate any advise!!

Thanks for your response Dan!

Doesn't Buildium have an accounting function though? If it does, I am assuming it would be much less comprehensive than QB?

Hi BP folks,

Just looking for input on whether Buildium (or any other PM software) can/should be synced with QuickBooks ?  I've been reading a lot of threads on here pertaining to which property management software works best, but so far my understanding is that both of the above offer unique aspects that the other doesn't provide;  Would it make sense to use both?

Rob,

It has nothing to do with my "lack of knowledge" in WHAT to do with his money, but trying to figure out which is the best legal structure to invest his money with.  One that allows him the tax benefits of keeping it in his retirement, but also allowing myself to manage it and receive compensation.   

Thanks so much for your input Jonathan!

So if I were to structure this as a partnership (no dealing with SEC), can my investor still invest through his retirement funds? So it would essentially be my LLC partnering with his retirement account, and in which case we would need to spell out what his "active" roll would be in the operating agreement?

Or would you advise to just start an LLC together? I want to try and stay away from the SEC in general because of the fees/regulations etc, but want for him to be able to fund the entire investment with his retirement funds, without having to take out cash and dealing with the tax implications...