All Forum Posts by: Brian Edwards
Brian Edwards has started 2 posts and replied 16 times.
@Basit Siddiqi
Thank you for the response Basit! I will be looking for a CPA this week and consulting to find the best path forward. I did not think of that from a personal vs business perspective, great insight!
@Suzanne Player Thank you so much for the response! I will start looking in my area for a professional to add to my team. I am excited to have the ball rolling and know that it is critical to set a solid foundation before scaling up.
Hi Everyone!
Hope this message finds you well.
I recently closed and moved into my 3 Bed/2.5 Bath SFR in Alpharetta, Ga (Northern Suburb of Atlanta). My goal is to house hack, aggressively save and live in it for 2-3 years before leveling up to a 4-8 unit.
I will be renting out the master bedroom and the other bedroom to get as close to the mortgage payment as possible ($1,650). I used a 3% down conventional loan.
I have 2 questions and would love some guidance:
1) Do I need an LLC to report rental income?
- You hear LLC all over the place and I know in some cases they aren't necessary. I own the house in my name and have insurance.
2) Dependent on #1, are there considerations if the income is not consistent in terms of structuring the leases. (Ex: Master is rented out for 9 out of 12 months of the year (some vacancy) and the other bedroom is rented all 12 months of the year. I've heard of the House Hacker (Me) renting the house from "Example LLC" and House Hacker (Me) subletting to the tenants.
I appreciate any and all input! I’ve been a BP Podcast junkie for years now and love the community.
TL;DR: Do you need an LLC for House Hacking? How do you report House Hacking Income?
Originally posted by @Account Closed:
I have an MBA and my recommendation to you would be to work for a company that offers assistance in getting an MBA. The company I worked for provided I think half of my tuition once I completed the semester, so half of my tuition was covered. Some companies do offer more. The catch is that you usually have to work for the company for a certain amount of years after you get your degree (I think two years is the norm). So while you would get a discount, or even potentially get it for free, you would be tied up for some period of time after graduation.
Do you plan on starting your real estate investing right after college without working? Or do you plan on working for a company in conjunction with starting your real estate investing? If you plan on working, I would try and do a part time program at night, which most schools seem to have one now. This will allow to work a corporate job, get your MBA, and get a discount on getting your MBA.
Also, there is no guarantee you will be six figures after graduating your MBA with no work experience. An MBA is most beneficial with some work experience, usually 2-5 years of work experience. I graduated with my MBA in 2014 and unfortunately could only find a job with a company that didn't really care if I had an MBA or not. So I didn't get any pay increase because of it. An MBA should help you move up the corporate ranks quicker than most people, but unless your going to a top 10 MBA, I don't see a six figure salary upon graduation.
Brian,
I have heard that most companies require you to work at least 2 years for them post-MBA if they sponsor it. I plan to work right out of college and start investing on the side. I believe house hacking could be a great starting point. That is a great insight. I would definitely work for at least 3 years before pursuing an MBA. I really appreciate your help and advice!
Best,
Brian Edwards
Originally posted by @Victor S.:
i'm in the camp of either don't do it at all or do it at a school that matters after you dip your toes in the real world. getting it straight out of undergrad without any real world experience is a mistake, imho. like Ola mentioned, big schools are all about networking and building those relationships that small/cheap schools won't afford you.
get out of school, find a job, buy your house hack, see how it goes, and then you can see if you still want that $70k piece of paper lol
Victor,
I would definitely be something I consider after 3 years or so of work experience. I am very eager to start REI. I have been listening to the podcast, reading about the subject, and talking to friends and mentors about it for a couple of years now. There's a part of me that thinks going to get an MBA will just further delay getting into REI. I really appreciate your advice as I am eager to graduate next month and get started.
Best,
Brian Edwards
Originally posted by @Frank Wong:
Originally posted by @Ola Dantis:
@Brian Edwards Hey Brain,
I was in your shoes about 5 years ago. I was prepping for the GMAT and visited Harvard and Wharton for their MBA programs.
Realistically, the MBA does carry some weight if you go to a top Ivy League as the network and friends you get are priceless, honestly. Remember, those same friends could potentially be your Passive Investors in your Real Estate deals in the future. Anyone who tells you otherwise hasn't been around long enough.
Now, getting your MBA from a pretty standard university might not be the best bang for your buck to be honest if you are already considering REI and you have no debt.
This is a tough one and you definitely need to do some critical thinking + soul searching.
Facts! Ola dropped some real knowledge here. MBA itself is becoming worthless as the demand for those jobs and income is shrinking. Unless you are going to a top flight Ivy League school it's not worth it. Even with those schools what you are paying for is "Access". Access to people you would not have known and access to the network.
Its all about work experience now.
Frank,
I appreciate your insight! That is good to know as I start my career. It will be interesting to see where the job market is going forward. I will definitely be cognisant of that down the road.
Best,
Brian Edwards
Originally posted by @Phillip Vera:
Just wanted to reiterate all of the same things said. I too am a graduate of the University of Georgia (Go Dawgs!) and got my MBA from a small local school. I truly believe you need 5-6 years+ of work experience. An MBA directly after undergrad is valuable, but you will get so much more out of it if you have work experience. Also, 5-6 years gives you plenty of time to even determine if you want/need one.
Also, this will set you up for the school and type of school you'll need to attend. I agree that the top tier MBA programs hold some weight. Nothing against Georgia Tech, but an MBA program from an Engineering/Technology school? That's fine if you're in that industry, but not sure it holds as much value in RE.
I am appreciative of the education I received and put it to use daily. However, I believe there is going to be (there already is) a huge educational shift in which undergrad and graduate degrees will become less and less important. I actually don't even believe my children will go to college as it may be irrelevant in 20 years. Who knows?
Good luck, feel free to reach out as a fellow Dawg!
Phillip,
It is great to see a UGA grad on BP, Go Dawgs! I just got allocated a student ticket for the SEC Championship.
I definitely plan to work at least 3 years before pursuing a program. That is a good point. I definitely need to do more research to make sure the type of school aligns with the path I want to go down.
I too think there is going to be a shift in the education system. That is another point I will need to consider later on if I decide to pursue an MBA.
I really appreciate your insight and advice! I am hoping to get out to Augusta sometime for the Masters. I went a couple years back and the atmosphere was amazing.
Best,
Brian Edwards
Originally posted by @Dane C Allen:
@Brian Edwards
Don’t pay for it yourself. Work for a few years once you’ve finished with your undergrad and you’ll likely find an employer that’ll pay for some, if not all, of the cost for your MBA.
Dane,
I would definitely look for ways to get it significantly subsidized. I really appreciate your advice!
Best,
Brian Edwards
Originally posted by @Account Closed:
Thoroughly research the reputation of the institution. (From the employer side too)
Kris,
Will do!
Best,
Brian Edwards
Originally posted by @Ola Dantis:
@Brian Edwards Hey Brain,
I was in your shoes about 5 years ago. I was prepping for the GMAT and visited Harvard and Wharton for their MBA programs.
Realistically, the MBA does carry some weight if you go to a top Ivy League as the network and friends you get are priceless, honestly. Remember, those same friends could potentially be your Passive Investors in your Real Estate deals in the future. Anyone who tells you otherwise hasn't been around long enough.
Now, getting your MBA from a pretty standard university might not be the best bang for your buck to be honest if you are already considering REI and you have no debt.
This is a tough one and you definitely need to do some critical thinking + soul searching.
Ola,
That is a great perspective. I have heard the network can be very valuable. Luckily, I have plenty of time to decide and figure out what path I want to venture down. I really appreciate your advice and the support of the BP community. Learning from those that have gone ahead of me has always helped me make informed decisions. I am eager to graduate next month and start putting my knowledge to work.
Best,
Brian Edwards