Ken Fenner
Active member
Are you buying properties through an LLC? Do you use a seperate LLC for each property?
Does anybody out there use a personal holdings company?
Does anybody out there use a personal holdings company?
Don, I've been advised to start a new LLC for each property purchased so that someone cannot go after all the assets of a larger corporation. I can understand that, especially in today's world. Are there tax or other advantages to putting them all under one umbrella?
The market is sweet right now. There are some good buys out there. I bought my first property in October an am getting it ready for section 8 rental. I really like the duplex and triplex real estate model. Every property I have looked at has positive cash flow at today's money rate and property value. I know many of you have other business vestments outside of pressure washing so any input or guidance is welcome.
Great dialogue.
Tim, the bank will give me a 75% LTV at 5.5% no pts. I haven't started shopping yet, thats the deal from the bank I have used for awhile.
Guys, look into "subject 2" investing. We buy houses w/ no loans, $10 out of pocket, and you can buy hundreds if you want to. I know it sounds like an infomercial, but thats how we do it. My mentor owns in excess of 170 homes, buys an additional 6-8 per month and sells 3-4 per month. Like I said we bought 10, and currently hold 2 but will go on a buying frenzy when I get home. Also, we only buy 5 years or newer so no repairs, and we get better renters.
AWESOME THREAD!!
Scott---do you have some recommended reading for all of this?
Also, how do you locate these needy sellers, or how do they locate you?
Scott (and others) how do you judge whether a proeprty is investment grade?
Do you use a GRM factor?
What is an acceptable cap rate for investors when money is cheap like it is now?
Most of the properties, including the one I am looking at now come in at a GRM of 9 and a cap rate of 9 also (give or take a couple tenths). Green light?