All Forum Posts by: Bill C.

Hello BP

I have a question regarding the best way to pool funds from multiple investors.

I already own a moderate-sized portfolio and now I have multiple friends interested in investing with me in similar deals.

We are all accredited investors and have known each other many years.

They are interested in an equity position along with me.

My question to everyone is:

What is the best way to efficiently pool our funds so we can invest? Would you suggest creating a fund? Multi-member LLC?

And who is the best professional to help me get this set up? Would a lawyer or accountant be best?

Thanks to all!

Bill

@David Smith

Hello all,

I’m considering a 1031 in PA.

Our CPA recently advised us to just pay the taxes. His reasoning was:

1. Capital gains likely to go up so might as well lock in current rates

2. Depreciation calendar resets

What does everyone think about this?

I know your strategy will influence this decision was just curious what others’ approach is.

Thanks!

Hello BP,

I’m wondering about whether I should install a keyless system on one of our rentals. We have used them on STRs and they’ve worked great.

Wondering if they would be a good idea for a traditional rental and if so, which Brand/Model would you suggest?

Thanks in advance!

@Kayla Hosick

Hi Kayla,

This all depends on what areas you're looking into. Pro-Forma ROI can be deceiving in any city depending on the neighborhood

@Steve K.

This is poetic and so true

@Marky Suazo

Hi Marky,

Those three neighborhoods are solid. I agree that Penn Hills can be spotty and needs vetting. Some areas don’t have a good reputation etc...

Brookline is pretty nice, I don’t know too much about Observatory Hill but I’ve heard it’s solid.

Happy to connect any time if you have any questions.

@Collin Schwartz

Wow terrific post!

Sums up most of the crucial aspects of REI in one eloquent piece, awesome read, thank you!

@Sarah Msuya

Hi Sarah,

Good question,

First, love love Portland, ME... so excited to visit when this pandemic is over :)

In terms of insurance... yes most banks require replacement value to ensure that their loan doesn’t get wiped out. It’s also good for you so that if there is a fire, you don’t lose your investment.

But I think more importantly, is how you’re thinking about risk.

Insurance is all about evaluating and hedging risk. If you're trying to be a long term investor then you're trying to minimize risk to maximize risk-adjusted returns... what I'm trying to say is that the main things that can completely blow up an investment in rental properties are relatively limited if you've done good underwriting of the property. Catastrophic damage and liability are the major risks ( I guess maybe a pandemic lol). This is why IMHO paying an extra few hundred dollars annually extra for solid insurance along with high liability coverage and maybe an umbrella policy ( if the property is personally owned or expensive enough to be more than liability limits in LLC) is worth it.

Finally, I also think that a solid insurance agent ( while not as useful for primary residence) is very valuable for rental property... they can inform you about many various options and can offer access to coverage that can truly save you in a pinch such as cyberattack liability coverage.

Just food for thought.

Happy investing !

@Drew Sygit

Great thank you for the suggestions Drew!