All Forum Posts by: Jared K.

I had an LLC in the past so I suggest when your getting started to just do it in your name. If you get to the point that your doing a ton of deals then yes get an LLC but for now it will only cut into your profits on taxes a little more by not having one. If you have a job then it will likely not show much difference on your return that you would normally get.

The reason I suggest this is b/c I have been there. You have to pay to start an LLC, which can be inexpensive if you do it yourself (mine was like $75) but costly if you pay a lawyer (about $300). Then if you have to pay a yearly tax on that LLC (mine $175), then if you ever decide to close that LLC it can be slightly costly as well. The reason it is costly to close one is because the LLC is filed with federal, state, and county so it cost to dissolve in all the offices, again...been there.

There are also two different ways to use an LLC for property:

1. The property becomes owned by the LLC and you sell that LLC when you sell the property. (could be a positive or a negative when you sell to your buyer)

2. The LLC buys the property and you keep the LLC to do business with but sell the property from your LLC to your buyer.

These are two big differences in the way the LLC operates/conducts business and would be taxed different as well so my advice to you is to consult with a good real estate attorney and a good real estate tax firm prior to making your decision.

Disclaimer: I am not a licensed attorney or licensed tax professional nor do I claim to be. The opinions stated herein is just that, my opinion, based on my own personal experiences in the state in which I live. Laws vary state to state so rely on your own due diligence, judgement, information and opinions from licensed professionals before you make any decisions regarding this matter. 

Sorry, had to throw that in there...lol.

@Jason Fox The best deals are not necessarily on the market. Look at for rent ads and call them to see if they want to sell b/c your looking to buy.

Hope this helps 

It will only pull your credit down short term b/c you got a loan and pulled your credit, most likely it really will have very little affect and will be higher after you have made several payments on the loan b/c you have maintained the payments. It will change your debt to income ratio reducing the amount you can borrow in the near future though. 

If your buying a rental then you can show income above your payment on the HELOC thus supporting more income than you currently have.

Cash is harder to come by so I try to use the banks money every chance I get. You should keep the cash for reserves, repairs, and add to it with your profits from your rental. 

With that being said it all boils down to whats best for you but that's what I would do. 

Yes, there are a lot of option when it comes to where to buy properties but it all depends on the deal at hand to say which one is best for that particular scenario. 

There is no perfect answer to your question because where ever you can find the best deal is where you buy, only makes sense. 

Dont get caught up in guru hyped programs promising you the next best thing, secret system, goldmine garbage. I will take a deal any way I can get it but I have never found a secret source golden key to unlocking promised fortunes yet with any of em.

Not enough information really. 

Did you just start at a 4yr college or have 1yr left? 

Do you have good enough financials to buy yourself or partner with your parents? Probably not best to partner with a local from my experience.

Maybe you could buy a duplex, if the #'s make sense, and live rent free while growing equity by renting the other side. Then sell when you leave college or have a rental management company handle it after you graduate.

Just a thought...

I feel your pain dealing with local investors b/c I have had the same problem. They dont want any competition so they dont offer any advice hoping you will not make a move and it's frustrating, I know. 

You could go in any direction but hopefully you have enough knowledge of real estate to keep you from making poor choices as to what a good deal is before you make your move. PLEASE take the the time to make sure you know how to evaluate properties before you make a purchase of any kind. 

I agree most of the above comments too, be careful what you do and who with! 

When you say access to 1M it really depends on if that means cash or loans to give you any guidance at all on this question. I would most likely own an apartment complex or many single families but have rental management handle either of them for me in your case.

I hope you find the guidance your looking for.

Great post! The same thing also works in reverse if you really want to do that to someone..lol. Just hit back after flagging an ad, open the ad again and hit flag. Do this several times in a row and presto...removed..lol!

The banks also look at your history of turning apartment buildings around with construction as you spoke of. Did you turn in a 5yr business projection plan including estimates and file for a construction loan? Did you include market rent data for newly rehabbed properties in the area with the same square footage to support your data?

There are may factors that come into play with this type of investment. Banks want a safe investment and if you can offer them safe data, say from brokers and contractors, then they might jump on board. 

Another thing to consider for you is that once renovated this building will likely be reassessed by the city/county and your tax's will be higher, therefore cutting into your profits. This rings true also with insurance b/c the bank will make you insure it at loan cost amount. 

The main thing that appears to be holding you back is the current rental income. I would tell the current owner why the bank is rejecting your loan. From there you can either negotiate the price down so the #'s work or see if he can put another tenant in there so that the vacancy rate is less and you can finalize the loan. If they want to sell they will help resolve the issue. You could also buy it owner financing, fill the vacancy, make minimal repairs and then take it to the bank and get your loan.

Hope this helps.

Since your dealing with a professional con artist I would hire an attorney immediately b/c every day they stay is another day of lost $$ and gained opportunity on their part.  My attorney files an eviction and a force-able detainer the same day. This way when the judge sees both the eviction and detainer it saves time and the judge can sign off on both. Most attorney's here give them 7 days to vacate and if they dont the force-able detainer gives me the right to have law enforcement set them off the property. If they are caught on the property again they will be arrested for trespassing.

Dont take the cheap route, hire a lawyer immediately that specializes in evictions and he will handle the rest.   You will make up the cost when you re-rent the property at a higher rate anyway.

@Bobby Valcin Thank you, you too can move past it but first thing is just getting started and its easy after that. Over time you will see the comfort zone as the most risky of all. You just have to get comfortable in the risky zone and move forward.