I’ve been thinking about real estate investing for several years now and didn’t expect to be so confused when trying to make my first purchase. 

I took a big 4 day road trip through some cities to look around these past few days and am very interested in purchasing a property to AirBNB. 

Investing in New Builds: Considerations and ProcessNew Build Investment Options:Build and Sell (Fix and Flip):Pros: Potential for high profits with modern appeal.Cons: Requires significant upfront investment and market risks.Build and Hold (Long-term Rental):Pros: Attracts quality tenants, potential for higher rental income.Cons: High initial costs, market fluctuations.Process Overview:Market Research: Identify high-demand areas.Land Acquisition: Purchase suitable land.Design and Planning: Work with architects and obtain permits.Construction: Oversee build quality and manage costs.Marketing (Fix and Flip): Highlight new features to attract buyers.Tenant Management (Rental): Implement thorough screening processes.Advice:Educate Yourself: Understand local regulations and market dynamics.Risk Management: Prepare for potential delays and cost overruns.If you have any other questions/just want to discuss feel free to reach out to me directly!

These conditions typically protect the buyer and ensure certain requirements are met before finalizing the sale.Contingencies to Consider:- Financing Contingency: Specify that the purchase is subject to the buyer obtaining satisfactory financing.

We use a YTD paystub and last year’s W-2(s) to calculate income several different ways:Hourly or salary income calculated to a monthly amountYTD income divided by number of YTD monthsYTD + W-2(s) income divided by the corresponding number of monthsIf these numbers vary too much, then we investigate and require an acceptable Letter of Explanation.Employment StabilityUnless an applicant has exceptional credit, we strive to determine their stability of employment to make sure they’ll always be able to pay the rent on time.

Are you looking to purchase or refi?

We purchased the land that we are bringing into the deal. 

My goal is to determine if I can still use this LLC as a holding company while maintaining liability protection.

Please let me know if I can provide more specifics or numbers.I have an opportunity to purchase a fixer upper in a relatively great location.

It is perfectly fine for it to purchase a property with another entity as tenants in common.