All Forum Posts by: Steve H.

@Brian Eastman and others: For someone investing between $50-100k from an SDIRA to purchase notes, does it still make sense from a cost perspective to set up an LLC for the IRA right from the start vs a custodian-held IRA?

I am looking at the fee schedule for a custodian-held IRA and I see a annual fee and a percentage holding fee. But for a LLC you would have to pay annual LLC tax plus attorney fees to establish the LLC. Where is the breakeven point when it makes sense to go from one structure to the other?

@Joseph Watson I have been pondering the same thing too, just starting out myself. Many of the posts on BP seem to say that it's not worth forming an LLC to start with. However I just attended my first local REI meetup where the professional advice there was that it was strongly recommended to purchase rentals under an LLC. They pointed out that even though you won't be able to take out a residential loan, there are more commercial loan options and it's not as hard to get a commercial loan as you might think. Sorry, I think I'm contributing to your analysis paralysis.

@Bart H. If I already own and live in my own home, as probably most RE investors probably do, then don't they already have assets they need to protect even when purchasing their first investment property?

Thanks to everyone who replied, especially @Tim Sharkey the point about focusing on a micro-market. What is the 1% rule - can someone direct me to where I can learn about that and other rule of thumb measurements I should be familiar with?

I am just starting out in REI and starting to practice looking and evaluating properties for sale on realtor.com. I know I won't find the best deals there, but without any experience doing this before, I think that is a good place to start looking?

Are there are any experienced buy/hold investors in this region who would be willing to offer some advice to the following two questions:

1. I live in West Chester PA and want to start local. I travel frequently to Newark, Delaware for work though, so my initial search area is the area west of I-476 in PA to Newark, DE. Southeast PA is much more expensive than Delaware. Am I better off concentrating on looking for my first purchase in Delaware due to affordability, or should I save more funds first to be able to afford a more expensive purchase in southeast PA?

2. I see that there is both a REIA in PA (DIG) and also one in DE (DelREIA). Both require memberships to participate in their meetings. For those who have participated in these groups, is one (DelCo or Chester DIG subgroup or New Castle DelREI) better suited for or more welcoming to a buy/hold newbie? I assume I should start with the REIA associated with the area I choose to invest in, which goes back to question 1?

Thanks!

Carl,

Thanks, if you have any groups/meetups you think would be good for someone just getting started, please PM me the info!

 If true, then it sounds like the Boro is trying to control which houses may be rented out and prevent the spread of students across town. If you can only buy a property that already has a rental permit and new houses cannot apply for one, doesn't that guarantee high rents as there is a barrier preventing competition to enter?

Rich,

Thanks for the tip!

That's what i'm hoping for. To start, I think it makes the most sense to find a property that is close by to where I live.

 I certainly wouldn't rule that out. However I always assumed that houses that college students would consider renting (close to the University) would be too expensive to make renting out worth it?

Hi All,

I'm completely new to real estate investing and trying to figure out how to get started in the Philly region. I am interested in buy and hold, preferably with houses near where I live in West Chester. I am an IT consultant (networks, VoIP, VPN, Linux) and have been running my own web hosting business for 15 years. However web hosting by a small business is longer as profitable as it once was and I am looking for a new business opportunity with a stable monthly income.

The only experience I have with real estate is with the purchase, refinancing, and sale of my own home. I don't have any professional construction/renovation experience, although I am handy and do my own minor house repairs.

I don't have enough cash to purchase a property, but I do have home equity and have self-employed income which I could use to apply for financing. 

I am just starting to read through Bigger Pockets (discovered it today!), and hope to find people who are willing to help me get started on this journey of identifying and purchasing my first (hopefully successful) investment property.

At this point, everything is still new to me and it is not clear how to get started, and in what order. I recognize that I still have a lot of reading to do prior to taking any action, and welcome the guidance of any members here willing to offer their assistance.

-Steve