All Forum Posts by: Tom Murphy

@Daniel Murphy

The 400k is in a taxable account. The retirement account has 335k in a 401k and 100k in a roth.

I feel like I’ve done well and have made few mistakes. You described exactly how I feel. “Meh”. Nothing is really jumping out at me. That being said I have this internal drive to constantly do better.

I know I don’t want to take on large projects like I did with my first 3 rentals again. It takes a lot of time away from my family and that’s the opposite of why I started investing.

I have been leaning towards a turn key property. I’ve looked at companies such as Memphis turn key. I have concerns with turnkey companies. From the small amount of research I’ve done it appears that the houses are at a mark up to the surrounding area. I understand that these houses have been vetted and most of the issues should have been resolved already, but I see this as starting in the hole already.

I have never worked with a property management company before. I’m concerned that I’m just another property to them. I would also take issue if I felt like I was being nickeled and dimed.

I also have concerns about buying property in a less than desirable area. I’ve never been to Memphis but the research I’ve done it doesn’t seem inviting.

As for syndication, it is an investment that I am not very familiar with. I do understand the basic premise but there are lots of the details that are a mystery to me. I suppose each one is different depending on the role I choose. This is something I would like to learn more about.

I appreciate the feed back from everyone.

Hello,

I am seeking advice on the next best possible move for my investment portfolio.

I currently own four properties, one of which is my own personal residence, and three income producing rentals (2 multifamily and one single family). I hold a significant amount of equity in all four properties, approximately $900,000.

I don’t enjoy the renovation and labor it takes to upkeep these houses, and I don’t currently have a reliable handy-man or contractor, which means all of the work falls on myself. I do enjoy the leverage the equity affords me in refinancing to purchase other properties. I don't wish to buy another property that will require me to renovate and manage the day to day.

In my professional career outside of property investing, I make a good W2 income. I max out my retirement accounts, and I hold zero debt except for the mortgages and 2 automobile loans. I have 6 months of savings and $400,000 in stocks.

I am considering the following options:

• Buying an out-of-state property through a Turnkey company in hopes to expand my portfolio with limited stress of managing and kick-starting a new property from scratch
• Buy an out-of-state property without a Turnkey Company’s help and hire a property management firm on my own; however I am nervous to pull the trigger on this one with limited knowledge of the markets and details on how out-of-state investment is done
• Purchasing a vacation rental in a high demand, large market like Florida, with the hopes to utilize it for personal use later on in life or during non-peak rental times
• Or investing in REITs or other stock market investments.

Are there any other ideas I should be considering, or do any one of these stand out amongst the others as the best possible move? Appreciate any thoughts.

Hey guys,

Just looking for some knowledge from someone with experience in this arena. I have an llc in which I have been purchasing properties through already, however the banks usually charge 20-25% down payment when the loan is under an llc.

Has anyone had any experience with purchasing a property under their own personal name to receive the advantageous terms of a personal loan (5% down and lower interest rate and 30 year amortization) and then transferring ownership to the llc?

If so, what are the ramifications of this?

What is the process and who do I contact to transfer owernship?

Is it easier for someone to come after me and my personal assets or will it continue to keep my personal and llc affairs separate?

Thank you,

Tom

@Carlos Zapata, Thank you for the response. I'm new to this. I've done a small amount of research but not enough to know about private lending. 

A loss on the property had not been discussed but now that it's a thought of mine I would probably have that outlined in the separate agreement with the property management company. 

Are there any other obvious details I should be considering. 

Hi all,

I'm looking for opinions and advice.

I was recently approached about becoming an investor in some properties. I have never owned a home or participated in any real estate ventures. I am a W-2 employee who makes a healthy Salary. I have no interest in being a hands on landlord.

The deal that was presented to me is that I would provide the down payments on the properties and responsibility for the mortgage. (approximately 30-60k down payments per property, the value of the properties between 130-160k) I would be the sole owner of the LLC that would be formed. I would also be the only one on the deed for the house.

A contractual agreement would be formed between myself and the property management group outside of the LLC. I would receive free property management. I will receive 2/3 of profits until my initial costs are recouped. (Down payment, closing costs etc) After that the profits will be split 50/50. With exception to the initial down payments all costs for the properties will be split 50/50.

I'm trying to determine if this deal is advantageous for me or would it be better to pay the 10% property management fees plus 50% of first months rents on new leases and possible other fees. (I have not seen the property management agreement yet.)