All Forum Posts by: Stephen Karakitsios

Hi Lani, 

Your head is in the right spot. I'm a new investor as well. I am interested in investing in multifamily units but as I did my research, I decided to purchase a single family home instead. I suggest starting with a SFH or house hack so that you can keep costs low considering you're young. This will allow you to get some experience under your belt and decide which strategy is right for your goals.

Keep reading and learning from BP so you can gain the knowledge necessary to find profitable deals. Good luck!

@Jeff Brower hey Jeff, great deal and great breakdown of the deal. Congrats. Thank you for sharing. A couple questions for you: What would happen if you did not fulfill the 1 year residency requirement after purchasing the property? I have heard that sometimes the only way to get into some specific deals, you must say that you will reside in the property for 1 year. After the 1 year, you can then rent it out. What would happen if you had started renting it out a few months early? Would someone come knocking on your door? Secondly, are you going to incorporate your license into all of your future deals? I am interested in getting my license as well. Two of the main benefits of having the license you leveraged: market research/MLS access and a key point in your negotiations.

@Joe P. Hey Joe. I recently purchased a property in Gloucester City as well. I know someone who rents in the area and they said they have inspectors come once a year (they didn't know what it was for but I'm assuming they're inspecting for CO). 

I am still getting my property ready for the CO inspection, I have about 3 weeks left before the 60 day deadline. If you hear anything more, please reach out and I'll do the same. I think the inspection costs between $50 - $75.

I am not aware of the registration or other fees we may have to pay.

I'm also in the area every weekend and most week nights after business hours. It would be awesome if we could grab a bite or a coffee whenever you are free. 

Hope that helps.

Hey Nick, So I am in the process of purchasing my first rental property but the only loan I can get is from a small bank. This bank will not allow me to be the primary borrower on the mortgage because I have not started my full time job yet. My Dad will be taking out the mortgage and I will be a co-borrower. We will be refinancing into a new mortgage after 6 months so that my name is the only one on the mortgage, title and deed. Do you know how much this refinance will cost? I live in NJ.

Hi BP Community,

I am a new RE investor and I am finally ready to make my first purchase. I have the funding, I found a property - now it's time to make an offer.

I plan on using the BRRRR strategy for this property but I do not think that the ARV will be high enough for me to pull out all of 20% down payment after I refinance (I'm also content with leaving a few thousand in). This isn't a huge issue for me because I will be making great cash flow from rent every month after a quick and minor rehab (that I will be doing myself).

Has anyone been in this situation before or can anyone offer some advice?

Thank you!

Originally posted by @Russ Draper:

Most first time buyers are surprised to learn that banks won't usually lend to a LLC/S-Corp/etc with no history. You'll likely have to get the mortgage in your name anyway and then quitclaim it into the LLC. Most people do this. So I would say there is no rush, do it in the first month after you purchase the property.

I hired a local attorney to draft the quitclaim for my first property, but legalzoom or similar sites can do it also.

 Thanks a lot Russ! 

I will probably end up hiring an attorney for my first property as well. 

Hey BP Community,

I am a new member to the site and this will be my first discussion starter - so take it easy on me.  

So, I am a senior in college and have been in the real estate game for a couple of years. I have not yet done a deal on my own but I am looking to purchase my first property within the next couple of months.

So my question is, if I am planning to purchase properties, rent them out and collect cash flow for the long term, would it be more beneficial for me to form an LLC and then purchase my first property or purchase the property as an individual then transfer the property to an LLC down the road? And if anyone suggests on purchasing the property first, how long after after should I form the LLC?

I know that I would be using a QuitClaim Deed to transfer the property to the LLC but I'm not too familiar with that process.

Could anyone share some knowledge in this space? Any feedback would be greatly appreciated. 

Thanks!