All Forum Posts by: Account Closed

Real estate is a smart option, especially for your current situation. I myself, am a single person with a higher income bracket than my colleagues who are 25. The properties should help with your gross income. A lot of improvements, and tax write offs help. I got into real estate, hoping to replace my day to day job. It's also another "security" as this day in age, who knows when someone will be laid off or fired. Good luck!

welcome! Hope to get to know you more on the site and learn from each other!

Rich,

I've also am very interested in these auctions. In PA, we have Judicial Sales that state they are "free and clear". I still have to review the process in detail, but it sounds very exciting. Any tips is greatly appreciated!

I recently had to scurry to meet this deadline. I had to scrape and sand my MFU before closing for FHA requirements before April 22. After that date, I can take my time to paint. However, I think if you have a rental property that is before 1978, I think you can get a lead base paint test to show that it is negative?

"Rich Dad, Poor Dad", it is NOT a book about how to really acquire real estate properties step by step, but it was one of my first books to help change my financial mind. It makes you look at life, education, jobs and other things you used to look at differently.

I am about to close on my first rental property. I am planning to create an S corp from the advice of a CPA. My question is, I've been searching for 5 tradelines for my new corp to get Paydex credit. However, I think the recent credit crunch, a lot of companies now require personal guarantee if the business is less than 2 years of operation. I've searched this forum, and there are old posts, most of them lists companies and stores, however when I look their business accounts up they want a personal guarantee for under 2 years. Can anyone get me a list of tradlines that are recent that has worked?

Also....
So, if you create this corporation and some day hope to take a business loan in the corporation's name without a personal guarantee. Even if you have a good business credit score, how do you show the bank that it has income coming in when you have a mortgage that is in your name? Some say refinance, transfer, and put it in the corporation, however I hear that some banks can call in the loan, plus Pennsylvania has a 2% transfer tax. :cry:

My accountant talked briefly about "capital gains"? Can I just put my own personal money into my corporation's bank account?

Thanks!

I'm looking to buy a multi family unit (MFU) with 4 units in PA with FHA. The seller indicated that the attic also could be made into two additional units to make it into 6 total units. Buying the currently MFU with 4 units will qualify it to 6. The local borough says I have to go through a zoning permit for the 6 units if I decide to renovate the attic. Does this mean I have to meet commercial property requirements? Does changing from 4 units with a FHA change my terms when it goes to 6 units (I'm having my realtor check this out with my lender)?

There's a 4 unit multifamily unit near my work in PA. There are also about 20 buildings that are very similar that are 4 units in the same area. In the past, the government built all of these units for shipyard workers and now they're being rented out to civilians. The 4 unit's number looks good, it is going for $185k, total rental income is $2310, which they are all currently being rented out. All units have separate heat gas, hot water, and electric. The area isn't too bad. Technically, I have to live in one unit to qualify for the tax credit, so that'll bring my rental income to about $1750. The thing is that behind these other properties that are being sold is another private invester bought out about 20 buildings and plans to renovate all of them to 1-3 bedroom units from bottom up. I'm guessing this will increase value in this property? Also, will I have to "raise the par" as in cosmetics, services, lower rent to compete with these newer apartments? Buying this property around other property in this community, will there be a lot of competition for tenants? Thanks!

Thank you all, I greatly appreciate all responses from everyone. Yes, in my case I am buying a 4 unit multi family unit. Yes, I am worried about let's say tenants suing and things going wrong and it hits me personally. I guess that's where I should decide about personal umbrella insurance and/or (which one or both) landlord's insurance. The transfer of title might be out of question because Pennsylvania has a 2% transfer tax on the house. Any other advice is greatly appreciated!

So is it impossible to have the mortgage in a LLC in this day of age? That's what the mortgage broker told me.