All Forum Posts by: Todd Wheatley

Hi Claire,

It sounds like you and Matt are off to a great start and have a fantastic plan laid out for the next few years. Very impressive!

@Sabrina Sanchez and @ian hogan are colleagues and friends of mine. They know the Worcester area incredibly well and would be a great resources to connect with. Best of luck to you and Matt!

Happy Investing!

Sure, here a few that I frequent. I'm sure others will chime in with their favorites too. Also check the "Events" page here on BP and Meetup.com for others.

Pints & Properties New England - https://www.facebook.com/Pints...

New Hampshire REIA - https://www.facebook.com/New-H...

Haverhill Real Estate Guild - https://www.meetup.com/Haverhi...

Hope to see you at one soon!

-Todd

Hi @Nicholas Mastalerz!

Congrats on getting a jump on your investment journey, it's a fun ride! I love the energy around a new meetup, it's always great connecting with other investors and folks in the real estate game. I would encourage you to also check out some of the awesome meetups and REIA meetings that are already underway!

-Todd

@Brendon Kerrigan - I’ve had very positive experience with Lifeproof by Home Depot. I’m sure other products are quite good as well but I find the price, durability, and aesthetic of Lifeproof very good and therefore have no reason to try anything else.

Good luck with your project!

Hi @Austin Negron. Why not list these on MLS? If they have strong rent rolls as you suggest, there are plenty of buyers looking for stable, income-generating assets. With a massive shortage of multi-family inventory I find it difficult to believe stable 3-family properties in Dorchester wouldn't be under contract in a matter of days. Best of luck with whatever you elect to do with them!

-Todd

@Brit Sharon welcome to the wonderful world of self-employment and trying six ways to Sunday to get a loan haha. I'm sure some of the lending experts will chime in on the thread offering excellent advice.

As someone who just transitioned from strong W2 employment history to self-employment which lacks 2 years of tax returns I can say it's going to be difficult for a bit. Portfolio, commercial, and private lenders will be your best bets. I would encourage you to ask around and see whom is well regarded in your area and then start getting on the phones early and often. I spend one day a week dedicated to calling and emailing my local lenders simply to build and maintain a relationship.

Lack of access to traditional lending is one of the more significant downsides to leaving W2 employment but on the flip side it can be a forcing mechanism to educate yourself and execute some of the more creative financing options available to us real estate investors. These can be extremely valuable tools to have in our tool belt in the long run. 

Keep up with the outreach and don't let it stop you from achieving your goals!

Happy Investing!

-Todd

@Lien Vuong is right, this can be another great approach as the current provider has already underwritten the property and is incentives to keep the business.

@Thomas J. Budka

Another vote for Prime Insurance here. My wife and I also hold homeowners and landlord policies with Travelers with very good rates. Good luck!

-Todd

Hi @Cecilia Cave, congratulations on getting your first three properties this year, that’s great!

Your question about using an LLC, or not, is a common one, so don't worry you're not alone. I would encourage you to search the forums as there's arguably more content on this topic than any other!

You should certainly consult an attorney and CPA for your specific circumstance.

Some things to consider if you begin acquiring properties in an LLC:

-you will almost certainly need to use a commercial or portfolio lender. Goodbye long term, fixed rate residential loans.

-property insurance using an LLC is considerably more expensive than individual/personal homeowners or landlord policy

-you will likely want a separate liability or umbrella insurance policy that covers your business entity and one that covers you as an individual.

-you will incur costs to setup and maintain an LLC. This will vary by state.

This is not to say there's no place for an LLC in a small portfolio but you should be intentional about what the intended benefits are vs the additional costs you will incur. Avoid the urge to create an LLC because it somehow "legitimizes" your business. The savvy business person may realize these additional, and possibly unnecessary costs, are eating away at business profits that could be used to reinvest in the business and buy more properties!

Good luck either way you choose to go.

Happy Investing!

-Todd

@Account Closed welcome to the real estate fray! It's an amazing journey and I'm excited for you.

@Philip Ganz hit the nail on the head. The FHA + 203K renovation loan can be an incredible way to get into your first multi-family property with very little down. In my opinion, it's important to be working with an experienced lender and investor-focused agent to pull off an FHA/203K purchase due to some of the details involved.

There are some really awesome local folks here on the forums. I would encourage you to connect with as many as possible!

Happy Investing!

-Todd