All Forum Posts by: Bo Goebel

@Jennifer Story If you're prepared to reinvest the money into something that will give you a higher ROI, then sell. If you are selling one SFH to purchase another SFH, I'd say you're back a square one. I'd say most often, holding the property that is cash flowing is a better idea.

It's mostly about if you are familiar with another market/submarket and if that market makes sense. 

Regardless, make your decision out of prudent analysis and not fear (of what markets will or won't do). 

@Thomas W.
1. Banks lend to LLCs all the time, it is just a different style of banking. Banking under LLCs= commercial banking. If you talk to an ordinary lender asking to purchase under an LLC, they will tell you they don't do that. You must talk to the commercial division in that bank.

2. You can transfer a property into an LLC after purchase by simply working with the title company. Your lender will find out at some point, and has the right to call the loan due (make you pay off the loan).  There are people out there who have done this and as long as your paying your bills, you have no issues.

@Michael Bacile

There are several successful investors that worked 60 hrs a week and still managed their first property, so it's definitely possible. Property management is really important, though, so I would start getting educated on the intricacies prior to trying it out. Even if you hire a PM, you need to know what to expect. @Brandon Turner's book on property management is excellent.

A great option, IMO, is to find a PM that will do "a la carte" style management. The actual management of the property does not take up a significant amount of time (depending on the quality of tenant and property- I would suggest both being good to great) but leasing the property does take special skills that are better "contracted out." I have paid a PM $300 to act as a leasing agent, and would do that time and time again. (just make sure you have final say on tenant selection)

Crushing it, @Sam Rust. I'm sure your investors appreciate the simple (and incentivizing) structure of your LLC. Way to go!

@Shaune L Clark II 

Hey man! Congrats on the first investment property. 

Are you a part of the Evansville unit? 

@Reid Knight Most "student armies" @Brian Burke is speaking about is where instructors will hold seminars or provide coaching to a group of lesser experienced investors (students) promising to help them with their first deal once the student finds it. The student then brings a deal to the coach and forms a joint venture, and the percentages of the GP are divided up by the different duties and tasks assigned to each member of the GP. Typically, these percentages can range from 10%-90% (of the GP shares, not the entire entity).

For example, if a student does nothing but finds a great deal and presents it to the coach, they receive about 10% of the GP.

If that same student brings that same deal, and wants to do everything but simply have an experienced syndicator walk them through the process, the student could retain as much as 90% of the GP.

@Theo Hicks Good luck with your own first deal. I'm sure you'll get the ball rolling soon. Great job on the new book by the way.

@Darius Boockholdt

Are you talking to commercial lenders? If so, adjustable rates are the norm. If not, you should be able to obtain a 30-year fixed conventional investment loan from nearly any lender. It just has to be in your personal name, not an LLC.

Try searching for non-owner occupied conventional rates. ETFCU is a great local bank, and talking to Jared Ziliak would be a great start, although he is on the commercial side of things.

@Paul Hurtubise Talk to Brandon Czoer at Goebel Realty. They are great property managers in Evansville. 

Also, Mary Moll at Evansville Homes for Rent is a great resource as well. 

Thanks for posting @William Kyle Walker.

Where are you in your syndication experience? I'm asking because I associate a fund with a fairly seasoned syndicator. 

@Ashley Wolfe

Also, buy "The book on managing rental properties" by Brandon Turner. It will give you access to forms and walk you through the more active side of managing rentals.