All Forum Posts by: Tyler Anderson

My partner and I will be in a similar situation soon, with hundreds of thousands of dollars of available cash and then opportunities for financing on top of that. Its fun to think of the possibilities (we are looking at short term rentals for now).  Seems like we want to try and use the cash for as many down payments as possible so that we can use low interest rate loans to expand our portfolio much more than if we just payed cash for 1 or 2 places. 

I'm nearby in York County and we are excited to be getting in the game right now. Don't overextend yourself, make sure you have a good emergency fund already established, and then take the plunge IMO. 

In order to get access to more properties sooner, we've decided to partner with a family member who is also very keen on getting into real estate investing. Basically he has access to more cash in the short term and I have access to easier financing (I'm a physician). The puzzle I'm trying to solve is how to structure this partnership. Seems like forming an LLC makes sense, but then new LLCs can't get financing very easily so I'd have to finance in my own name anyways. And transferring to our LLC could trigger due-on-sale. Going to keep reading and hopefully find a good CPA and attorney that can help us get our ducks in a row before getting started.

this sums up what I have read elsewhere: Having an LLC protect you from liability (it's in the name!), but if you are using financing your new LLC will have a very difficult time getting a loan. It sounds like you can do the deal with cash so you don't have that issue. For me, I'm wondering how to eventually make the transition from getting loans under my own name to getting loans through my LLC. Will I just have to wait until I can buy with cash? I'd rather use financing as much as possible, at least while the interest rates are low.

I'm just getting started too. Lots of recommendations here and elsewhere that it makes sense to get started in an area that is nearby or in which you already have a lot of connections and know well.  I'm certain it doesn't need to be done that way, but with all the things I am learning it sure helps not having to learn it all from far away.