All Forum Posts by: Charles Xia

Hi Michael,

From the top of my head this is what I know. I am not a lawyer and dont follow everything I say to heart. Your lawyer is correct. I also assume you have a mortgage on the property.

First thing is im not sure how you are purchasing the home, owner occupy/investment property. But what that comes down to is the type of loan you get. Owner occupies get better loan rates because youre living in the property etc. If you were to buy it under an LLC you would HAVE to get a commercial loan which has higher interest rates and higher down payments. Lenders give better rates to people buying a home to live in because they care more about paying for the property if things go south.

Second, people do in fact deed their property into an LLC and yes a lot of investors do it for protection. If you got a mortgage loan lenders typically have the "due on sale" clause as they talk about on the podcasts a lot. What this means is when you deed the property into an LLC youre technically selling it to a company and the lender can say you have to pay the the full amount of money borrowed because you sold the property.

Third, You can pay rent to a separate management llc that doesn’t own the property.

I hope this helps.

Happy Investing,

Charles

Hey Guys! I'm from Queens, also looking for cash flow properties. Interested in Out of State Investment Properties because a lot of NYC places aren't worth it. Would love to connect!

Hello! My name is Charles and i'm beginning my real estate adventure. I've listened to a little over 150 podcasts episodes and in everyone of those episodes Josh and Brandon tell you to say Hi on biggerpockets so that's what i'm doing. Got my education going... Rich Dad, poor dad, e-myth, millionaire real estate investor, you name it.

A little background on me

I went to NYU for engineering. Work full-time in engineering and I really want to get into real estate. I live in Queens, NY. Very good with numbers and I have a little bit of capital saved up. Also very handy because I worked and studied in manfuacturing.

What i'm Here For

I'm looking to open myself up to opportunities. I've been scanning real estate in NYC for a while now and everything has a pretty hefty down payment and doesn't cash flow very well for beginner investors. I would like to know if anyone else on BP is in my situation. I don't plan on leaving NYC so I am beginning to look for out of state investments. I am also wondering how you overcome not being in the area (property management, etc.)