All Forum Posts by: Tim Robinson

Hi Everyone,

I'm a newer member here on Bigger Pockets and have a question that I'm asking somewhat retroactively hoping for some guidance on my next investment property purchase. My wife and I currently live in Europe and have 5 doors rented in the states, including a triplex in Baltimore that will be the topic of my question. The two homes we own in DC are financed conventionally on 30 year mortgages in our name. For the triplex we decided to incorporate an LLC under which to purchase the property to protect our own assets in the event of a lawsuit, etc.

In many ways I am regretting this decision as 1.) the rate I got on the commercial loan in order to finance the property was quite a bit higher than I would have been able to get on a conventional residential loan and 2.) the tax filing on this property was a bit of a nightmare this year (we just purchased the property last year). I did not realize that since both my wife and I are equal partners, the laws in MD require us to file a separate return on our "business" property. This led to incurring fees to help file for a separate tax filing, as well as a great deal on confusion about how to properly record income/expenses without a CPA over the coming year.

We are looking to potentially purchase a turnkey property in the next couple of months somewhere in the midwest while we are still living abroad, and I guess my question is, other than potential protection form lawsuits, has anyone found any other benefits to purchasing properties under an LLC? I have heard form people that once the property is paid off, it often makes sense to re-title it under your LLC. But are there any advantage I am missing to actually purchasing under and LLC?

Sorry for my long-winded first post but any guidance/experience is welcome.

Tim Robinson

Investment Info:

Single-family residence buy & hold investment in Washington.

Purchase price: $655,000
Cash invested: $7,000

This is our primary residence bet is currently rented to wonderful tenants for 18 months as my wife and I are serving a tour in Europe for the next couple of years

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $395,000
Cash invested: $59,000

My wife and I lived in this condo prior to moving to s single family home about 2 years ago. We decided to hold onto it as it is in a fantastic neighborhood. We also took out a HELOC on it to help us buy our SFR as it has appreciated tremendously since we bought it

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Baltimore.

Purchase price: $349,000
Cash invested: $50,000

This is a triplex that we bought under our LLC as a buy and hold. Units 2 and 3 were occupied, and unit 1 was a mess. We fully renovated Unit 1 and now how someone enjoying the space.

What made you interested in investing in this type of deal?

I am interested in small multifamily buildings in good neighborhoods. My main strategy is buy and hold and this property fit into my goals perfectly

How did you find this deal and how did you negotiate it?

I am a licensed real estate agent in MD and I worked with a couple of my agent partners to find the deal and negotiate with the seller. It was a in a neighborhood that I was interested in, and the fact that the first unit needed significant work made it the ideal opportunity to be my first BRRRR property.

How did you finance this deal?

I put in $50,000 cash and $50,000 from a HELOC that I have on one of my other properties in DC

How did you add value to the deal?

By renovating unit 1 that had been vacant for several years due to neglect/disinterest by the previous owner.

What was the outcome?

The building is now fully occupied, running smoothly, and I pan on keeping it indefinitely

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Andrew Pariser of Long and Foster was a wonderful help in assisting me to find the property and negotiate the deal