First Property in Escrow! Now what?!?

2 Replies

Hello! 

So I have my first property in escrow which is a SFH, it's cash flowing about $154 a month.

No HOAs so no surprises :-) 

So once this property closes my friend/client says he will PM for me. ( he flips houses in the area) ( I am an out of state investor ) 

He drives to california every week to workout with me.  

Should I have him look over my property and then down the road look over multiple properties or just hire a PM company ( he would charge me less and I know he would be on top of the stuff)

My goal is to get into two properties this year before me and my fiancee get married. Is it best to put the properties in a trust even with one property or wait for more? I love my fiancée very much and she is an amazing person but since I will be the sole purchaser of these properties, I want to protect them or if I were to ever get sued. 

A simple trust is ok. Its affordable and easy enough to set up. Skip the LLC. Until you have a business partner just operate as a Sole Proprietor. Make sure you have a good liability policy and with multiple properties and assets maybe an umbrella policy. The liability protection of an LLC is greatly overstated and misunderstood. There are very few times when an LLC is appropriate and you aren't there. They involve employees and other factors. Stick w your friend as a PM so long as you can separate friendship from business. Once you have a few properties you could look into a PM if between you and your friend it becomes too much work.

thanks for the info! 

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