I am 49 my goal is to get my first duplex or triplex My accountant and realtor said to get an llc but those in BP says i dont need one at first. Buy and hold is goal. Do I need and LLC i am fearful because I am new that it would be difficult to find a lender. Please help to clarify the best approach and how to protect myself without an LLC entity.
Rental Property Investor · Virginia Beach, VA · Member since 2018 · 19 posts · 6 votes
6y
I wouldn't worry about an LLC until you start to aquire multiple properties. You can just file a Schedule E at the end of the year when you do your taxes. It's pretty simple. Best of Luck!
Are you trying to live in the property or just buying solely as an investment? I talked to a handful of local lenders and they wouldn't let me put the property in an LLC; maybe your lenders will be more lenient!
Rental Property Investor · Virginia Beach, VA · Member since 2018 · 19 posts · 6 votes
6y
I wouldn't worry about an LLC until you start to aquire multiple properties. You can just file a Schedule E at the end of the year when you do your taxes. It's pretty simple. Best of Luck!
Hi Adam thank you for your response I agree. Just have to find and manage protection via insurance umbrella of some sort. I definitely think an entity will hurt me in the beginning.
No I wasnt gonna live in the property. Just would be my first rental. My wife and I have a house for the past 22 years. Our house is in her name so technically i am a first time buyer. I am in Manchester Ct buy the way
No I wasnt gonna live in the property. Just would be my first rental. My wife and I have a house for the past 22 years. Our house is in her name so technically i am a first time buyer. I am in Manchester Ct buy the way
Hi Bruce, buying a house with a LLC at this point is probably just going to complicate things more than needs to be complicated. Keep it simple and buy it in your name, with the proper insurance in place. Feel free to reach out with any questions, I am in Windsor Locks.
i really appreciate your input. I asked my accountant and a real estate agent buddy of mine and the first thing they both said was get an llc. Since ive been listening to lota of pod casts and webinars on BP it hust didnt feel right this early in the game. I am in the education mode now and have a goal of a duplex end of the this year or at the very latest with the first quarter of 2021. With all that is going on it looks like more towards 2021. I know i want to buy and hold and definitely looking to use a property manager. Hopefully i will have more questions for you in the future . Glad to know your right in my backyard:)
Hi Bruce, I am an investor in The Tampa Bay, Florida area. If you are using a HUD backed loan(FHA), they will not allow you to purchase with an LLC. With that said...It depends on your rental strategy. If you are wanting to eventually BRRRR you will want use Hard Money Loans to acquire the property. They require you use an LLC or Land Trust(Not all allow it, but look into it). Remember, you can only have one FHA loan at a time. Your second purchase will have to go conventional. Lenders only like to see 4 mortgages at a time. So you will have to get creative when you start buying more...Good Luck!!!
i really appreciate your input. I asked my accountant and a real estate agent buddy of mine and the first thing they both said was get an llc. Since ive been listening to lota of pod casts and webinars on BP it hust didnt feel right this early in the game. I am in the education mode now and have a goal of a duplex end of the this year or at the very latest with the first quarter of 2021. With all that is going on it looks like more towards 2021. I know i want to buy and hold and definitely looking to use a property manager. Hopefully i will have more questions for you in the future . Glad to know your right in my backyard:)
Like many people said above an LLC isn't necessary, I see many investors not worry about it until they have a few. When you do get an LLC you can just transfer the property to that after close. You don't have to buy in an LLC. You mentioned lending issues and with conventional lending, it would be a problem to buy in an LLC name, but not to transfer to one! You also mentioned waiting until Covid passes to buy, but you might be passing up some good deals in that time. Are you buying locally or looking to a market that will make you better returns?