Updated over 3 years ago on . Most recent reply
New real estate investors and random questions
We are new investors looking targeting 3 long term rental properties this year. We currently have one LLC but are going to potentially apply for two more once we get up and running. We have about 60k capital that we are willing to start investing with.
The LLC structure the first would be acquisition, second would be a holding company and the third would be the property management company.
Question- thoughts on how many LLCs are needed? when we should look to open up the other LLCs? Do we actually need the other LLCs?
Method of financing we have looked into RNC capital and LendingOne for lenders that deal strictly with LLCs. We are target properties they provide a ROI of at least 15% and primarily looking into smaller single family homes to start.
Question-Is 15% a good target? For new Investors what are the best methods to finance? Thoughts on Heloc, crowd sourcing, or personal capital to finance the first few set of homes.
Most Popular Reply
It may be worth spending some time getting good advice on the right amount of asset protection for your specific situation. It is also worth noting that "more LLCs" is usually not the optimal answer. Every entity must be properly documented and maintained, and failure to do so, makes the LLCs useless.
Unless you are already very wealthy and a target for lawsuits, I wouldn't spend my first efforts on creating LLCs. It is far more important to learn how to find, acquire, and run property. You should also be aware of the many downsides, particularly for financing, that LLCs bring.