All Forum Posts by: Boris Alayev

I may need to start a new thread on this but putting the question out there....

Seems there are debates on if an LLC is required. Some say the costs associated with an LLC are not worth the benefits it provides because an umbrella policy for some $25-$30 a month can do the same. I am learning that conventional lenders will NOT mortgage a house under an LLC (not sure why) even if the LLC is a pass through vehicle with one member.

I have great credit and would prefer to leverage that and finance the investment homes. How are some of the seasoned investors getting conventional loans? Is the umbrella policy the way to go and just use my SSN/Name for all properties as a sole proprietorship type of operation? I want to be ready with financing so I can more quickly on a few deals. 

If I use my name on all properties do I still get all the TAX benefits? 

Thanks. 

@Michael Gansberg thanks for the insight. I am actually looking at Cleveland, but I would not be managing the properties myself, so I would imagine any emergencies etc can be handled by the agent. 

 Thanks for the insight Craig. I will reach out. 

@Sean Brodarick

I found the group on meet and signed up for the August 19th event, see you there, and thanks for sharing. 

 Sean, that sounds great. I will try to find some info on the club in Suffolk and try to join. Do you have to be a member to attend? 

@Joel S. thanks for all the advice.

 Yea it is not very realistic to begin buying investments where the properties are 400k-700k and taxes in excess of 20k. 

@Alina Trigub, when you mention the time needed to spend on the strategy is that even if I chose to have the property managed? I understand that even with the management firm there is some time you need to invest, but I hope to invest that time in finding more deals and building the portfolio and let the management firm deal with the day to day. 

Hello BiggerPockets community. I stumbled on to some BP podcasts and was hooked. I always liked the idea of real estate but never stopped to think about how it could be turned into a investment opportunity. I read the BP  beginners guide and "7 years to 7 Figures" by Brandon Turner and so far I like what I am seeing. I have talked to the people in my circles and it seems many are interesting in investing and many have skills/values they bring to the table (ie RE Attorney, Funding etc). 

Luckily I do not need supplemental income so all the proceeds would be going towards further investments. I think I like the buy and hold strategy and it seems single family and smaller multifamily (duplex) units are the easiest to work with when first starting off. 

I had a few questions:

1.) I would prefer to have a partner for at least some of the deals at the beginning, what are some recommendation of how to structure the LLC or some of the difficult points that are better to discuss/review/understand before partnering with someone?

2.) Investing in Long Island NY, which would be natural for me due to my location is not as easy as it requires more startup capital. Brandon Turner underlines that if you can't stick to the strict numbers in your region, branch out.  I have been told Cleveland Ohio may be a good investment opportunity. What are the cons/pros from those who know first hand.  And what circles should I get involved in to get more information?

3.) What are some other regions worth exploring? I prefer to stretch 20k-40k of my initial investments to be able to purchase as many properties as that would allow (down-payments) as I have excellent credit and would be perusing conventional funding from banks. 

Thanks in advance.