Hello NH BP'ers,
I've searched the forums and surprisingly haven't found much relating to this topic for our state New Hampshire. I'd like to know how you've structured your business (or haven't), and why? Also what strategies are you using within ie: flip, wholesale, hold ect
I have my properties in an LLC to provide a little separation between my business assets and personal assets. Plus my CPA said with the new tax law there are some advantages to that structure without over complicating our filing. I'd recommend talking to your cpa or lawyer before making a decision.
Having it out of our names also seems to help with managing tenants. Everything goes out in the businesses name and not ours which feels more professional and pushed us to make the right decisions. We’re doing buy and hold of large Multi-families in the white mountains area but Were thinking about trying vacation rentals If we can find the right properties.
Thank you very much for responding. I'd like to dive a little deeper into this if you don't mind. How are you financing your purchases, and are you putting them into a revocable trust upon said purchase?
We purchased them with commercial financing with a local credit that we had an existing relationship with. It was a 20/80 loan but we negotiated large $$ back at closing and ended up putting less than 10% down on the properties we bought. We have 24 units (5/7/12) all managed by a professional property manager that lives in the area which was important since we live 2+ hours away in northern MA (lowell). We did not assign them to Trust or anything like that, were just keeping them in the LLC and running them as an extension of our personal finances. Does that answer your questions?
Feel free to PM me and I’ll send you my cell so we can talk in more detail or answer additional questions you may have.