All Forum Posts by: Thomas Veal

Thank you @Walt Payne . I appreciate you advice and guidance. The separate LLC for the flips I assume would be a generic name for the property? ie....white Ivey LLC. Etc?

David,

Thank you also. That was the initial allure that made me want to research the LLC further, the protection of assets that it can afford. I guess I just wanted to hear others experiences with them and any pitfalls they have had to contend with, if any.

Thank you Brett for your reply. You are so right about the 2 different camps regarding whether or not to become a LLC. I have been doing a lot of research and reading up on the matter on the forums here. That's kind of why I wanted to get some more input from others that have done it and what their experience has been. I have a friend that is an investor and is a firm believer in establishing "trusts" in lieu of an LLC. So that is a whole other possibility I suppose. But I have not done much research on them

Good Afternoon,

After moving along at a snails pace, I am finally going to start buying some properties. My initial plan is flipping, with rentals also part of the equation at some point. My question is setting up an LLC. I have been advised by several people that setting up an LLC would be a good idea as a "safety net". I have also heard about a series LLC since I want to be able to purchase several properties and keep them under the same umbrella. Has anyone done this or have any thoughts? Thank you

Hello Cara,
Welcome to this gold mine of a website. I am new as well, and there is so much information on here that it can be daunting. But in my experience so far, the people that you interact with on this website are very willing to help. You asked some great questions! I am curious to see what answers you get as well. So welcome again!

Jon,
Thank you for your reply, and once again I apologize for the confusion. It is very possible that I am completely misunderstanding the whole "note" concept as I am trying to get a grasp on all apsects of real estate investing. Talking to another investor, he had mentioned that he purchased a property with cash and held the note on the property. He then would hold the note to the property, in essence becoming the bank, and would negotiate a deal where he sold the property while maintaining ownership of the note. In that way, as I understand it, if the people who "purchased" the property defaulted, he would foreclose the property, and then turn around and sell it to someone else. Now I may be completely misunderstanding the details surrounding the process, but that was the main idea. In regards to the idea of getting a conventional mortgage here is where I stand and I would love your input. I currently own a home that I still owe on and have a HEL attached to. I have a very stable job that pays well and I have a very good credit score. My wife also has a very stable and well paying job and between the two of us we bring home decent income. Aside from going the private investor route, my thought was to qualify for an amount and buy properties that are close to being turnkey properties, and then rent them out. Can I not borrow against the first rental property to come up with the down payment towards additional rentals? In your experience is this a good idea? Thank you for your input, I greatly appreciate it.

Brandon,
Thanks for the reply. And I apologize for the confusion. Yes, my thought to get things going was to buy a property using a traditional mortgage in order to rent. As far as holding the note, that is an option once I get things going on the rental side of things. I apologize for making it confusing. My biggest hurdle right now is how to actually "start". From my research on the website and talking to others....I think that the best thing for a new investor such as myself is to start out with rentals, rather than wholesales or flips. Once I get the first rental, my thought was to borrow from the first rental to purchase the next...and so on. Good idea? Whats your thoughts?

Hello all,
Wanted to ask some advice about funding your first property. My plan is to get my first property as a rental by getting a conventional mortgage where I hold the note and then rent accordingly. I would then borrow against my 1st rental property to fund an additional property and so on. Is this a good way of going about property acquisitions? Or is it better to take the private lending route to flip a property, take the profits whtaever they may be to give the lender their percentage, and then use those profits to put towards a rental property? There are several homes in my area that I would love to jump on...its just a matter of taking that first step and ensuring that the correct funding is in place. Any advice would be greatly appreciated. Thank you.

Bob- sounds like you have things pretty well covered. I always suggest that people get smoke detectors that do not rely on a hardwired electrical source. Granted all smoke detectors have a battery backup. However, have the detectors hard wired that are required by local codes, but then supplement with battery powered detectors. The detectors that have a 10 year battery are great...set it and forget it. Here in Florida, the majority of our house fires are caused by lightning strikes which cause fires in the attic that go un-noticed until it is too late. I personally have smoke detectors in my attic. Just a thought...

This is a topic that I can hopefully shed some light on. I am a Lieutenant for a local large fire department in Florida and I can tell you that although it may seem like a complete overkill...it is best to have a detector in each bedroom, in the hallways, and yes..even one in the kitchen. If you get the right kind, they will not go off all of the time for no reason. It all boils down to safety. For your own home..would you rather be bothered by more smoke detectors, or bothered by your family perishing in a fire. I have unfortunately seen families perish in fires that they could have survived if they had functioning smoke detectors. You can also get detectors now that have a 10 year battery. I will be happy to share with you what the National Fire Protection Agency which is the Federal Governing body when it comes to fire standards says about the number of smoke detectors that are "ideal". If anyone is interested, email me and I will share with you.