Hello Everyone! My name is Holly Saxby and I am a newbie at real estate investing. I was a CPA and am working to get my license reinstated after 10 years of staying home with my kids( I have to catch up on my cpe). During this time at home, I learned a ton about rehabbing our house and generally have a confidence about repairing/replacing most things. I am currently volunteering with my church's repair and maintenance ministry and learning more skills. I would like to make my 1st Buy and Hold property in 2016 using equity from our current house. I am here to gain knowledge and with that...the confidence to take the plunge in the next 3-4 months. I am hoping to finish my business plan in the next 2 weeks and set up an LLC to be ready to move. I would love any advice that would help!
Welcome to Biggerpockets @Holly Saxby !
hi @Holly Saxby Welcome to BP. Feel free to post any questions . Also there is Atlanta specific BP not very active but its there .
Hi Holly, Welcome!!
Out of curiosity, why are you setting up an LLC?
Hi Holly and welcome, I'm not to far from you in Gainesville GA, Forsyth is hot right now so maybe you can land a deal there. Maybe we will meet sometime at REIA or another meetup, good luck and best wishes
Welcome to the Bigger Pockets community. It is a great place to learn about real estate.
I thought an LLC was the the normal structure most investors used for the liability protection? As I said though, I'm in the education part of this adventure and haven't got to the early setup...working my education from the backend of where I want to go toward the start. But, I know as an accountant, that I need to make sure the setup is right before proceeding. What is the norm for investors if not an LLC?
Hey Holly, I think if you ask 10 people you will get 10 different answers. I don't think there is a "normal". Everyone has their own personal reasons for why and how they invest. I was just courious if you felt strongly about an LLC over a corporation or owning in your own name. I own my rentals in my own name because of the easy access to financing. Not many lenders will lend to an LLC. However for tax reasons my flips are through an LLC that is taxed as an S Corp. it's what works for me. Some of my mistakes have taught me to ask "why" before I make a decision. I recommend that to everyone starting out.
Best of Luck!!
I wasn't aware of the possible problems with getting financing because of the LLC. I guess that makes sense because banks will want access to all funds possible if you default.
So, do you get the financing for the flips through the LLC? or do you get them personally and then transfer them somehow to the LLC after the flip?
Hard money lenders are an option for flips but it is very expensive money and short term. They lend only to LLC's. The last two I did with cash. Next year I will be working with partners.
An LLC is not a bad option, after a couple years banks will lend once they see the business is standing on its own. It might be worth your time to talk to some small local banks close to you. You can get a good feel for how they will lend based on your goals. I found that helped me put detail in my business plan. That applies to the other experts you'll need as well. Try to spend some time with a real estate attorney as well as a realtor in your area.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you