All Forum Posts by: Bo Goebel

Thank you @Luka Milicevic

Nashville Family,

I am currently working on a deal that I would like to reach out to some local lenders in the Nashville area for funding. I have never used anyone in Nashville, so who would you recommend I talk to. The deal I'm working will be north of $2.1 million. Who is an all-star lender/mortgage broker?

Thanks. 

Bo

@Brian Bandas

The single thing that will impact your out of area (state) investments is the team you have on ground in the investment area. PM is undoubtedly the most important, but having others that can help and/or check in on the PM is also important. 

I would also highly suggest making it a point to get up in the area as often as possible... especially early on. This makes an impression that you care and will hold people accountable.

@Doug Dattawalker

Any lender I've talked to requires commercial multifamily property (5+) to be established under an LLC. I agree with @Melinda Warren, there is not any property that I would buy without having an LLC established for it. Or an extra insurance policy. 

As for your case, I don't think there is real need to form one in California if you do not want to own property in the state of California. I would just form an LLC in the state you are buying property in (once you have gone through due diligence on the property).

@Frederick Wofford jr With no separate walls I'm at a loss how it's considered a duplex... so I would compare to other 2 bed 1 bath homes. Another more accurate way is to use a property management company to help you determine the market rate. Good luck!

Good for you, Michael @Michael Beeman! Both Rod Khlief and BiggerPockets are going to be huge reasons why I succeed in this field. Congratulations on the beautiful new home and more importantly a bright future! 

Best wishes.

@Bryan Clark
Congratulations on getting this far. Just looking at your numbers, I don't see any monthly expenses for vacancy, Capital Expenditures (you may have this wrapped up in repairs), or property management. You could have easily already accounted for these things, but if not that will definitely bite into your cashflow. 

In my humble opinion, I think that purchasing a property at 90% retail is in most cases a little to high to be renting it out. Negotiating the purchase price down to lets say $90,000 gives you a lot more exit options. You'll be taking on a lot of risk as a property owner/landlord, so make sure you have the spread that is worth it. 

Best of luck. 

Thanks @Bryan O. 
Tax incentives make Tennessee a great choice too. 

Jordan Page You’re thinking that 3 incomes is better than one is correct in theory. You will have a better chance of getting financing, distribute the inherent risk of real estate investing, and have multiple incomes to pay rent (lowering your contribution towards rent). However, you would be wise to have a in-depth discussion about this with any partner you take on. Do your goals align? (Are you all wanting to hold the property long-term even after moving out or sell?) What happens if one of you moves? If it becomes a rental, or you start renting to a non-owner, do you reinvest the earnings or distribute? Take a look at an operating agreement from an LLC (you can find in the files on here) that spells out these things in detail. Then tailor it to your situation. There are many questions like this you all need to discuss. Play the “what if” game for a while to understand where each of you stand on certain topics. Then make an informed decision. Business relationships have ended a whole lot of great friendships. Be wary. Lastly, be particular with the people you do business with. I know a few of my closet buddies I would not consider going into business with because of differences. There are too many people out there who would be excellent partners... don’t settle on people just because they are convenient. Perhaps you find an third party investor, you purchase the plex, and then rent the other units to your friends. But maybe your plan will work out great. Best of luck.

What state should I start my investment LLC in? Is there any issues with an investment company in "x" state can buy property in "y" state?

I have one investment property in Tennessee, live in Virginia, and just went under contract on a property in Indiana (where I am actively searching for more properties). I am active-duty military and my legal state of residence is TN.  

I'm not necessarily looking for specific legal advice, as I realize this is a specific question that needs to  but looking for conceptual information on the topic. Thanks all.