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Min ZhangBusiness Member

Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes

2y

Hello Craig. Consider adding Ohio to your list of potential markets for rental properties. Columbus, Ohio is particularly attractive due to its affordable home prices and high demand from renters. Additionally, major corporations such as JPMorgan Chase, Nationwide, Honda, L Brands, Huntington, and Amazon bring in thousands of job opportunities to the city.

I invest locally in Columbus Ohio. I can send you a list of contacts in Ohio to help you build your team, property manager. Let me know how I can help!

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Bradley BuxtonBusiness Member

Real Estate Agent · NV · Member since 2023 · 1k+ posts · 713 votes

2y

I have some contacts for Lawyers that can advise you how to setup an LLC. I like your list and your vision of what you want to do. You're off on the right foot!

#1: Reno, NV is a great market to get started with low property taxes, landlord friendly, close to CA, and huge tech job growth. There are still deals and strong appreciation signs.

#2: We have a references and vetted vendors that we recommend to our clients to build a team from lenders to lawyers to CPA's and contractors.

3#: We can help you work through different strategies and deal design depending the market changes and your vision of your portfolio.

4# This will happen with good vision and strategy. Never risk so much that it will take you out of the game.

Happy to connect and be a resource.

Craig I.Pro Member

OP

New to Real Estate · CA · Member since 2023 · 20 posts · 18 votes

2y

Quote from @Sean O'Keefe:

@Craig Imazumi there is a debate among real estate investors whether or not you need an LLC. CPA and Lawyers will always tell you to get one (and contrary to popular rumors this has nothing to do with getting more $ for filing fees). Not owning your rentals through an LLC exposes you to more risk, even if you have an insurance policy on rentals.

However, as a new investor, you may encounter some challenges and opportunities leveraging the LLC. Here are a few below:

Generally, buying through your personal name can reduce the interest rate - commercial rates on LLC mortgages are usually higher but you can research this
Most LLCs on incorporation don’t have any credit so it may be difficult to find. a lender
If you own the property in your personal name you are exposing yourself to more risk and will want to transfer the property into LLC as soon as you can
If you own property in your personal name and transfer to LLC the lender may not allow or can call the entire loan

LLC or personal ownership you need insurance.

If you search the forums for this topic using the magnifying glass feature in top right corner of your screen on BiggerPockets you will find a lot of discussion on "Quit Claim" "Buying through LLC", "LLC or not" etc.

.

*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

Appreciate this guidance! Thank you.

Craig I.Pro Member

OP

New to Real Estate · CA · Member since 2023 · 20 posts · 18 votes

2y

Quote from @Min Zhang:

Hello Craig. Consider adding Ohio to your list of potential markets for rental properties. Columbus, Ohio is particularly attractive due to its affordable home prices and high demand from renters. Additionally, major corporations such as JPMorgan Chase, Nationwide, Honda, L Brands, Huntington, and Amazon bring in thousands of job opportunities to the city.

I invest locally in Columbus Ohio. I can send you a list of contacts in Ohio to help you build your team, property manager. Let me know how I can help!

This would be huge. I'd love to connect and learn more about the Ohio opportunities.

2 Reply

Craig I.Pro Member

OP

New to Real Estate · CA · Member since 2023 · 20 posts · 18 votes

2y

Quote from @Bradley Buxton:

I have some contacts for Lawyers that can advise you how to setup an LLC. I like your list and your vision of what you want to do. You're off on the right foot!

#1: Reno, NV is a great market to get started with low property taxes, landlord friendly, close to CA, and huge tech job growth. There are still deals and strong appreciation signs.

#2: We have a references and vetted vendors that we recommend to our clients to build a team from lenders to lawyers to CPA's and contractors.

3#: We can help you work through different strategies and deal design depending the market changes and your vision of your portfolio.

4# This will happen with good vision and strategy. Never risk so much that it will take you out of the game.

Happy to connect and be a resource.

All options are open at this point. Would love to connect with you in regards to Reno, NV opportunities.

Sherry Patterson

Real Estate Broker · Fort Worth, TX · Member since 2015 · 221 posts · 125 votes

2y

Hi Craig! If you decide to add Texas to your list I have a team that can help you with any of your investment needs. I have a list of referrals. I am with @Sean O'Keefe at this time in your investment career I am not sure an LLC is advised. I am not an attorney but I think the cons outweigh the pros. An LLC provides so little protection it is not worth the other issues it causes such as lending. If it is protection you are looking for, then once you are an established investor you will want to look at putting your assets in a trust. If you want to reach out I will be more than happy to help you in any way that I can whether you are looking to invest in TX or not. Just let me know how I can be of service to help you accomplish your goals! Happy Investing!

Craig I.Pro Member

OP

New to Real Estate · CA · Member since 2023 · 20 posts · 18 votes

2y

Quote from @Sherry Patterson:

Hi Craig! If you decide to add Texas to your list I have a team that can help you with any of your investment needs. I have a list of referrals. I am with @Sean O'Keefe at this time in your investment career I am not sure an LLC is advised. I am not an attorney but I think the cons outweigh the pros. An LLC provides so little protection it is not worth the other issues it causes such as lending. If it is protection you are looking for, then once you are an established investor you will want to look at putting your assets in a trust. If you want to reach out I will be more than happy to help you in any way that I can whether you are looking to invest in TX or not. Just let me know how I can be of service to help you accomplish your goals! Happy Investing!

@Sherry Patterson thank you for your reply. I'm fully open to all deals throughout the US, so I'm happy to put TX into consideration. I also appreciate your thoughts on the LLC especially since I'm a small fish still. If your open to connect, I'd love to learn more about the TX opportunities and trends.

Sherry Patterson

Real Estate Broker · Fort Worth, TX · Member since 2015 · 221 posts · 125 votes

2y

Feel free to reach out anytime!

Nick Maugeri

Real Estate Broker · Modesto, CA · Member since 2023 · 192 posts · 77 votes

2y

Quote from @Craig I.:

Hi All,

I'm local to the SF Bay Area and I'm looking to aggressively start my real estate investment portfolio outside of CA. To ensure that I do this right, I have an immediate ask if anyone has recommendations or referrals for a real estate attorneys with clients in CA who heavily invest out of state. Presently I'm looking for legal advice on setting up a LLC.

I'd like to acknowledge I'm the noob to real estate investing, but I've been trying to soak up as much knowledge from BiggerPockets and other real estate investment knowledge sources. Any and all feedback, recommendations, tips/tricks are going to be greatly appreciated.

My real estate investment goals:

- Goal #1 Get my feet wet: Establish a minimum of 2 long term rentals out of state in 2024(hopefully in the next 3-6 months), location TBD but I've been looking at Missouri presently. Open to ALL locations.

- Goal #2 Building a Network/Team: Establish real connections with other like minded investors or professionals for advice, partnerships, and general support. Hoping to meet hungry and driven professionals that align with my ambitions.

- Goal #3 Evolve and Scale: Evolve and diversify my real estate investments strategies to help my portfolio grow and scale.

- Goal #4 Become an Real Estate Investment SME: This obviously won't happen over night and will most likely take a decade or two to achieve. But if I'm successful, I'd like to become a beacon on knowledge to help others in the community.

For those who read this far! I appreciate you and hope that we can connect :-)

I did this, sending a DM!

Nate MeekerBusiness Member

Real Estate CPA | California · Member since 2020 · 543 posts · 251 votes

2y

@Craig I. - be cautious of the extra LLC filing requirements and fees in CA! Don't let legal entities or complex tax planning get in the way of you investing in a deal first. If you are really concerned about legalities, you should get a living trust first and foremost.

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Craig I.Pro Member

OP

New to Real Estate · CA · Member since 2023 · 20 posts · 18 votes

2y

Quote from @Nate Meeker:

@Craig I. - be cautious of the extra LLC filing requirements and fees in CA! Don't let legal entities or complex tax planning get in the way of you investing in a deal first. If you are really concerned about legalities, you should get a living trust first and foremost.

@Nate Meeker Yea I'm slowly starting to agree on this...I understand the 'benefits' of an LLC but I don't also want to get stuck in analysis paralysis. Great points on the living trust.

I really appreciate these comments as it makes me want to just get my feet wet with the first deal. Thanks for your the insights!

Craig I.Pro Member

OP

New to Real Estate · CA · Member since 2023 · 20 posts · 18 votes

2y

@Account Closed I read your post and that was FIRE! Love it.

Thanks for your insights, your original post has gotten me all fired up and eager to learn more.

Michael SmytheBusiness Member

Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes

2y

One other challenge with LLC's is that you will have to pay annual filing fees in both the state you live in and the state where the properties are.

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Nicholas L.Pro Member

Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes

2y

https://www.biggerpockets.com/forums/48/topics/1159104-overl...

read this thread:

then at least consider investing in a local or closer market.

also strongly recommend house hacking.

Logan LaperriereBusiness Member

Real Estate Agent · Grand Rapids, MI · Member since 2023 · 333 posts · 124 votes

2y

Quote from @Craig I.:

Hi All,

I'm local to the SF Bay Area and I'm looking to aggressively start my real estate investment portfolio outside of CA. To ensure that I do this right, I have an immediate ask if anyone has recommendations or referrals for a real estate attorneys with clients in CA who heavily invest out of state. Presently I'm looking for legal advice on setting up a LLC.

I'd like to acknowledge I'm the noob to real estate investing, but I've been trying to soak up as much knowledge from BiggerPockets and other real estate investment knowledge sources. Any and all feedback, recommendations, tips/tricks are going to be greatly appreciated.

My real estate investment goals:

- Goal #1 Get my feet wet: Establish a minimum of 2 long term rentals out of state in 2024(hopefully in the next 3-6 months), location TBD but I've been looking at Missouri presently. Open to ALL locations.

- Goal #2 Building a Network/Team: Establish real connections with other like minded investors or professionals for advice, partnerships, and general support. Hoping to meet hungry and driven professionals that align with my ambitions.

- Goal #3 Evolve and Scale: Evolve and diversify my real estate investments strategies to help my portfolio grow and scale.

- Goal #4 Become an Real Estate Investment SME: This obviously won't happen over night and will most likely take a decade or two to achieve. But if I'm successful, I'd like to become a beacon on knowledge to help others in the community.

For those who read this far! I appreciate you and hope that we can connect :-)

Hi Craig,

Congrats on starting your real estate journey! I see that you are interested in investing out of state. Have you considered investing in Michigan? I have been investing here since 2014. We have some great markets that still exceed the 1% rule. I currently invest in Grand Rapids, Kalamazoo, and Metro Detroit. If you would ever like to chat about the local market feel free to reach out. I am always happy to help fellow investors.

Craig I.Pro Member

OP

New to Real Estate · CA · Member since 2023 · 20 posts · 18 votes

2y

Quote from @Nicholas L.:

https://www.biggerpockets.com/forums/48/topics/1159104-overl...

read this thread:

then at least consider investing in a local or closer market.

also strongly recommend house hacking.

Thanks for sharing this, it was insightful to see journey of another Bay Area investor.

I've also considered house hacking, but I'm in a unique situation where I'm living with family and per the arrangement I'm taking care of all bills. Otherwise, house hacking would be my go to strategy.

Craig I.Pro Member

OP

New to Real Estate · CA · Member since 2023 · 20 posts · 18 votes

2y

Quote from @Michael Smythe:

One other challenge with LLC's is that you will have to pay annual filing fees in both the state you live in and the state where the properties are.

Great point here. I'm definitely weighing the pros/cons of the LLC as this is my initial investment with real estate. I'm still considering myself as a small fish the grand scheme of everything.

Wale LawalBusiness Member

Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes

2y

[email protected]832-776-9582 Podcast Guest on Show #469

It's great that you have high expectations for your real estate investing endeavours. Reaching your goals will need thorough preparation, networking, and consulting professionals. Here are some pointers to get you going:

1. Begin Small and Grow Gradually: Set out to develop two long-term rentals as your first objective. You can investigate other tactics and more substantial investments when you have more expertise and self-assurance.

2. Ongoing Education: Make a commitment to ongoing education in the real estate industry. Keep up with changes in rules, market trends, and investing techniques.

3. Mentorship: Ask seasoned investors who have found success in the fields you're interested in for guidance. Gaining knowledge from their experiences can hasten your own development.

Remember, patience and persistence are key in real estate investing. Celebrate small victories along the way, and stay focused on your long-term goals.

Best of luck on your real estate investment journey!

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