Real Estate Investing With Friends
Hi all,
New to the group, but happy to be here!
Hoping for some advice - I'm trying to buy some real estate property out of state with 2 other friends (3 in total) and we're having a hard time figuring out the exact order to get going.
1. Should we create an LLC to start? If so, does it matter if it's in the state we're trying to buy property in?
2. If we do create an LLC, it looks like we get worse rates than if we buy through a personal loan. This would ruin any of our chances to take advantage of a 'first-time home buyer' program, correct?
3. Any other general advice is greatly appreciated!
Thanks in advance,
JK
Most Popular Reply
Welcome to Bigger Pockets Jon Kim!
Bigger Pockets is a great place to learn and connect with fellow investors.
To answer your questions...
1. I wouldn't create an LLC when just starting out. I would focus on securing a deal, figuring out what type of financing you want to use, then go forward from there. Buying with an LLC limits your financing options when you're starting out.
2. This is correct.
3. If you’re looking to invest long distance, I definitely recommend building your core-4 team. This team consists of an Investor Focused Agent, Lender, Contractor, and PM.
Read this article on the "core 4". It explains the team that you should develop to have a strong foundation under you while investing remotely.
https://www.biggerpockets.com/blog/core-four-real-estate-team
What market are you looking to invest in?
- Samuel Diouf
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