Newbie from Jaffrey, Monadnock Area in Southern NH

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Newbie from Jaffrey, Monadnock Area in Southern NH

Chris Luksha
Contractor · Jaffrey, NH · Member since 2016 · 102 posts · 14 votes

Hi All,

My name is Chris Luksha and I am the male in my profile pic. My beautiful wife Beth is there with me and we have been happily married with three children for some time now. Our 17th Anniversary is coming next week and we are taking our first Anniversary getaway in 16 years (Since the the first two of three kids.) All that to say - I have been working for the sake of working and would love to start investing my time in my family's long term future and not just next week.

In keeping with the suggested first post topics, you have already heard a little about my family. My experience in Real Estate Investing is solely the purchase of my first home. It was a bad experience and after 10 years I am only now starting to pay down the principal in any noticeable manner. That bothers me. I would like to understand more about REI and hope to spend many hours here and at other forums reading and learning.

My hopes for REI is to buy and hold rental properties for both mid term income sources and long term retirement. So I hope to learn TONS about the best business entity to create, the use of land trusts, the understanding of self directed retirement accounts and which to start using, how to find investors to help me create small income in order to build large investments.

Here are some of the goals I came up with to start my time here:

GOALS

Short Term:

Research and Create Investment Team 

Read up on REI for 1 hour a day minimum and take note of the highlights and inspirations.

By 8/15/16 Have a company entity defined and registered with the state. So far an LLC seems to be the most common and ‘safe' however you can establish an LLC as a corporation as well as a member or manager llc. ICK! Where to start! (I have already read some great articles in the forums and blogs - thanks all.

Mid Term:

6/15/17 Have one fully insured multi family rental property.

I am glad to be a new member of BiggerPockets. Thank you to NHREIA for the tip. I look forward to meeting many of you.

God Bless!

Chris

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  • Matt Lefebvre
    Real Estate Broker · Manchester, NH · Member since 2014 · 630 posts · 420 votes
    10y

    Welcome @Chris Luksha!  First off, congratulations on the soon-to-be getaway that you'll be having with your wife.  Well-deserved after 17 long years.  

    There is a ton of great information on this site and I encourage you to soak up as much as possible!  In addition, I'd definitely recommend checking out any of the local REIAs that happen here in NH.  Its a great opportunity to network with other investors who are either at the same point as you, or a bit more experienced so you can learn from them.  

    One piece of advice I'd give, is don't get too caught up in all of the details.  Its great to have a plan and know what you want, but make sure not to let all of the specifics prevent you from pulling the trigger.  A good deal can slip away very quickly in our market if you're not ready to make the decision.

    Otherwise, best of luck, and feel free to reach out if you'd ever like assistance!

    0Reply
  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Chris Luksha

    Welcome time to build the legacy.

    You might reach out to Amanda Han she is a real estate CPA active on BP and has written 2 books for BP. You can discuss legal entities with her.

    Paul

    0Reply
  • Chris Luksha
    OP
    Contractor · Jaffrey, NH · Member since 2016 · 102 posts · 14 votes
    10y

    Thank you @Paul Timmins. I will check out Amanda and look into her books. Thanks for seeing my first need and addressing it. 

    Chris

    0Reply
  • Thomas FranklinPro Member
    Real Estate Investor · Miami, FL · Member since 2010 · 939 posts · 739 votes
    10y

    @Chris Luksha Your post was not clear regarding if you are interested in Multifamily Residential Properties (MFRs) such as a Duplex, TriPlex, or a Four Plex, for Buy and Hold Acquisitions, or Commercial Multifamily Properties (5+ Units). I will write about MFRs and invite you, to please consider the following. Many Realtors will suggest purchasing a property using a FHALoan, to reduce your out of pocket money. If the property requires rehab, the Realtor and/ or Mortgage Broker will suggest applying, for a 203k Loan. A 203k Loan is where the purchase price and rehab costs are rolled into a single loan.

    Assuming you have a respectable FICO you can buy, with a FHA Loan (3-5% down, a 30 year amortization schedule, and a residential loan rate). Because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC. What happens if one of your tenants has a slip and fall, on your property, or something else happens to them? You are on the hook and can be personally sued, for everything you own. Some people will say, "Take out a quality Insurance Policy and you will be protected." Ambulance chasing attorneys know their way around and can legally navigate around Insurance Policies. Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC.

    If you want to close in the name of a LLC, Mortgage Lenders will offer you Commercial Loan Terms (25-30% down, a 15-25 year amortization, and a ballon due in 5-7 years). This is what I am encountering, in the current Mortgage Industry.

    If you think you will go FHA, Conventional, 203k, etc. and then Quit Claim the property, to a LLC, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days. These clauses are contained, in all Promissory Notes nowadays.

    Many Realtors and/ or Mortgage Brokers will not tell you this information. Many, but not ALL are only focused on the commissions he/ she will earn and not focused, on your best interests. You many be asking yourself what can I do? Locate a Motivated Seller that will consider Seller Financing. You may have to put more money down (10-15%), but you can close, in a LLC, with no worries about banks. I have a lengthy Legal Opinion, from my seasoned Legal Team regarding this matter.

    0Reply
  • Chris Luksha
    OP
    Contractor · Jaffrey, NH · Member since 2016 · 102 posts · 14 votes
    10y

    Thank you @Thomas Franklin  for the response.  At this point I know I am interested in Duplex, Triplex and Four Plex.  I would like to buy them and keep them for both retirement and cash flow. First for cash flow to help promote future purchases.

    The FHA Loan is certainly appealing on the surface - but I will have to do some more digging. I have spent this entire last week listening to past podcasts as well as watching a webinar on BP and reading a ton of blog posts. 

    I would love to put everything into an LLC for the sake of protection but again - more digging is needed as I know that will require different bank financing if I go that route.

    Thank you for the overview.  That was helpful to point me in some other directions to dig deeper as well.

    Blessings,

    Chris

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