All Forum Posts by: Trey McGovern

Let me also state that this would be the quickest path to ownership on this property for my particular situation, personal finances dont stack up well, but my business has had the good fortune of being in some great relationships with a couple banks and private investors. 

Money isnt the problem, in fact it will be easier for me to finance through the business side than my personal side. 

I am most interested in benefits pro or con. I am not as familiar with the benefits to owning the home as regular person. I know the good stuff from the business side though and those benefits seem enough to me to warrant doing it this way. 

PLUS it obviously builds my business up and accomplishes the same goals in wealth building. 

So can someone elaborate more on what a $200,000 property would like to the IRS in terms of personal vs business? Like Top 3 benefits for each side? 

For instance: Business Property

Depreciation

Mortgage Interest

Expense Write-offs

As far as the 121 exemption, I am unfamiliar? Care to divulge further detail?

Same things that you do on any rental property, depreciation, write-off expenses, mortgage interest write-offs, etc.......

Easier to incorporate into my portfolio since thats where its headed anyway? Why do the work twice if i know I want it as a rental unit in 2-3 years? 

What are the benefits from owning it outright personally compared against the benefits listed above? 

So I am in a weird situation. I have been actively investing in Real Estate for the last 6 months, but have had the idea for 3 years or so. 

Over the course of that time and during my research and thinking phase, I was toying with the idea of purchasing the current house I live in and using it as a rental, but I would be the tenant (short-term). 

So the situation stands where I am currently living in a great house that was purchased at the tail end of the 2008 market. Seller was desperate, so he decided to rent it out since the flip market was literally non-existent. I ended up in the house. 

Now, I want to purchase the property (I think its a great deal and in a great location for future appreciation), but I dont have any plans on living there for any more than 2-3 years from now. It is currently a rental property, I intend for it to be a rental, both by myself, and with future tenants. 

Can I legally purchase the house through my company, AND then create a lease between either myself or my wife to the holding company. This would be run totally like a business, all expenses handled through my company, rent checks made out to the company, etc.....

Is this something that is possible? Would I have to purchase as my Primary Residence and then resell to my company when I am ready to move and make the transformation? What would the obstacles be? 

The goal is to obtain those cards, but my questions hinge around the effect of mortgages on my business credit. 

Are they doing anything to improve it? Would more help? Does paying them off in 6 month to a year even look good on my credit profile? Do more secured mortgages help or hurt?

Im not worried about what to do with the cards or really how to get them, I am trying to find out if using mortgages, since thats what I currently have easy access to, will help build my business credit profile, quicker, better, and stronger? 

Does anyone know?  

Hey Guys,

So Im pretty new at investing and have some questions on building business credit. 

I have my company registered as an LLC (2 years)

I have my EIN (2 years)

I have my business bank account (6 months)

No D& B number or credit bureau profiles

I have 2 loans against 2 of my properties, and all of this was loaned as my business, but it is obviously personally guaranteed at the end of the day, even after equity securing the loans. 

My  questions are, how does this effect my ability to build business credit? Is there a specific way I need to hold these loans? Anything I should be doing differently? Are they even effecting my business credit profile? Is this better than the CD/Loan/Payoff method of building my business profile? Will more mortgages help? I can easily probably acquire 2 more based off of how I am doing it and the conversations I have had with the bank. 

I also have a very flexible private financier available, and I am wondering when to use them to pay off mortgages strategically to refinance and further boost my credit by paying off large lump sums relatively quickly and easily? (Some of my current loans are massively out of whack LTV wise and I can free up assets by refinancing in a few months) Does that even make sense and work? And if so, when does it look good to the bank? 6 months? 1 year? 2?

My problem is my personal credit stinks for now and I want to access Lowes Credit Cards and other business credit cards to quickly purchase materials, or finance repairs over a few months instead of all cash up front, etc. 

Any tips? 

It all depends on what exactly you are looking at Ken, and obviously the specific location. As I am sure you know, every area is fraught with its own little subtleties and nuances and the same can be applied right here to New Bern. 

Our town is quite charming and is an absolutely fantastic place to live, which is why I have chosen to remain here and continue to call New Bern my home. There is simply no other place I would rather be. 

Now, you mentioned that you are coming from DC and our properties here are 'silly cheap'. I would tend to agree with the sentiment that our homes are still reasonably priced and offer an excellent value for the dollar being spent. We also offer a much more peaceful atmosphere and nowhere near the congestion. So, with that being said, and from what I am hearing you say, I am guessing the type of property that would suit your needs would be something that fits the charming nature of the town and would be convenient for your Air B-N-B clientele? Would that be correct? 

I have a couple of properties already in mind that could fit your needs, just Private Message me if you would like to hear more about them.

Hey Timothy, 

I work (as an RE agent), live, and invest in the New Bern area myself. I can possibly assist you if you would like some access to our MLS listings and would consider looking further in the New Bern/Jones County area.

Shoot me a message if you would like to discuss some of this further, I would be happy to help and share some of my experiences in this area. 

Take care, 

Trey

 New Bern is where I live, which is a great place, but I like to play a lot at the beach too around Beaufort and Atlantic Beach

Hi Everyone, 

My name is Trey McGovern and I am a relatively new Real Estate Broker in Eastern North Carolina. I recently underwent a major career change and decided to become involved in buying and selling real estate. I had some minor experience watching my father buy and rent lower end houses and apartments the last few years and I saw the cash flow opportunity and thought that since I love houses and my local area so much that I should pursue a career in doing the things that interested me. 

I come from a background of family owned businesses and an environment of very entrepreneurial type people in my family. That trait has been passed on to me, and through that discovery I was able to open a beauty salon with my wife, an internet based collectibles business, and now beginning to invest in real estate while simultaneously working as an agent for Keller-Williams. 

I started the process of licensing last fall with weekend classes, started my career with KW on January 4th and have been immersed ever since. Throughout that process and trying to satiate my thirst for knowledge, I stumbled upon Bigger Pockets and really started to fill in the gaps for my personal business unrelated to the sales side. 

I already had an LLC formed from a couple years back as I had a twinkling in my eye back then, never realizing that it would manifest now. In fact, I had let it dissolve and was ready to just forget about it when everything started to come together.

In the subsequent few weeks since being hired and utilizing the ideas I learned here from BP (mainly the podcast for me), I was able to make a move to purchase the other half of a duplex apartment I owned and to actually have the property completely in my name. This allowed me to begin leveraging, and I just closed on my second property today, and signed my contract for a third to close within 3 weeks. 

I absolutely I do not believe that things would have come together this quickly for me if it wasnt for BP, and I just wanted to give a quick shout out and say thanks a million. The wealth of knowledge here is incredible. It took hearing things from here to realize that I already had most of the people in place to get me started, I just needed to be educated on how the process worked a bit more before I was confident enough to make the first move. 

It really does feel good to know you are moving in the right direction and have such a great support network behind you . 

Thanks again for all the knowledge guys, oh and 'Hey' by the way, since I dont think ive ever really posted an introduction. 

My name is Trey McGovern, I am 28 years old, and I am a house-a-holic