All Forum Posts by: Tony Blanco

Hello @Jared Chenel

I like your enthusiasm, but you definitely have an aggressive goal. I think one of your big obstacles is going to be getting your loans. Banks want to know you are able to pay in good times and bad. Most of properties my are in LLC's but I still have to personally guarantee the loan. I make really good W2 income and my rentals all have positive cash flow but It can still be a struggle to get a new loan. Keep in mind, rentals don't show profit at first. So a banks not going to keep dishing out loans.

Regarding LLC's, I would definitely use them for asset protection and tax savings. They're only $100 per LLC in NH if you set it up yourself. You will also need to write up an operating agreement for each LLC and follow the legal process to keep them in good order. I also have a business and a personal umbrella. That's what you end up with when your friends with a State Farm rep! Regarding taxes, NH does not have income taxes, but if I make over a certain amount in a particular entity you may be taxed. My accountant says it's best to have multiple entities. I would contact a good NH CPA for more information.

Lastly, I guess this goes without saying, but make sure you enjoy it. Real estate can sound glamorous but it can also be stressful and difficult at times too. Not everyone enjoys the calls for a septic system backing up into the basement, tenants that can't afford to pay the rent or even when your best tenants are buying a house and you need to find new tenants. 

I purchased my first property in 2011 and now I own 11 investment homes. Mostly single family town homes. I don't know if I would be able to handle twice as many while working full time. That might be too much, for me anyway. 

That being said, I still enjoy landlording and rentals. My advice would be to start off by buying your first property and when 1 at a time after that. You will learn as you go. You don't need LLC's but for $100 why not?

Best of luck

Tony

Hello Greg 

I have an awesome drywaller that has worked on all of my flips and rentals.  He works on residential, commercial, new construction and rehabs.  He does a great job and we have become good friends over the years.  His name is Sean Gallagher and he lives in Derry but travels all over.  Please give him a call at (603)339-9743.  Unfortunately Rochester is a little to far for my painters. Good luck with your new investment!

Tony

I agree, once we select a tenant I write the lease and have them sign it right away. Then I collect the full security deposit at the lease signing. I have had some tenants struggle with the full security deposit if they are moving from one rental to another and they have a security deposit with someone else.  I have accepted as little as half upfront and the other half at the move in if I am very comfortable with them.  

I agree with everyone's posts, however, I think the only thing missing it the fact that even if you create an LLC, the property is still in your name. Your property will need to be moved from your name to the LLC. This may be part of the lawyers fees.

I don't see how the LLC will strengthen your case, but it might be something to look into for asset protection.

I would speak with a title / closing company about the costs to change the name and see if it's worth it to you.  

I would try talking to the person occupying the home. You can offer them cash to leave peacefully. I look at it as a win/win. I've never had to evict anyone so I can't help you there. 

Good luck

Tony 

Thank you Myron Cummings

Hello 

I have been using Erentpayment to transfer rental payments into my account for a year now without any issues. Last month 3 payments that were made have not been deposited into my account. This was several weeks ago. To make it worse when I call to inquire, a recording stating that communication must go through email at this time. I usually always speak to someone in person. I have emailed and opened a ticket but I have not received any response. Does anyone have any idea what is going on. 

Thank you

Tony 

My wife, who is an agent, will not agree with me, but I don't think you always need a buyers agent. The buyers agent is getting a portion of the money from the deal. Will that money end up going to the seller agent?? Probably, but it's my opinion that the seller agent would what the deal to go to you. I would only do this it's a home I really wanted and I knew there was competition.

That being said, You are going to have to do all the due diligence and  know your numbers. The seller agent is not going to look out for you. I would not recommend this until your comfortable with the process. 

I see your in Brookline, I've used Tim Morgan in Nashua for a several deals. He's an investor/agent

Good luck

I have used Kelly Cohen from Cohen closing and title in bedford NH and Frasca & Frasca in Nashua for many of our MLS deals and refi's. We also use Meghan Grugnale from Phenix Title in MA when we get a hand money loan with Ann Bellamy at Buy Now Hard Money. She is further away but may have more experience with unique situations.

Hi Dean

It wasn't clear to me if you planned on living in this home or not. Some people may not agree with me, but I think it makes a big difference. I run the numbers very well on my investment properties and make sure there is cash flow. I didn't do this on my primary residence. My home is a liability that cost me money every month and may not have any return in the long run. Just like my pool and boat. But I enjoy all of them and that's what I want. Yes I could pay a lot less if I lived in a duplex or multifamily, but that's not what my family and I want. 

Just make sure you do your due diligence to find all the faults of the home and know the repair values. It sounds like you have this under control. Work with the owners to come up with a price you both agree on. Then find a good closing company to assist you. They will help with the legal prep or point you in the right direction. 

Good luck