All Forum Posts by: Dorothy Wulf

Alex is right about PMI, but it can be worth a small price to pay to get your foot in the door for little money down.

Hi Joe,

I am a Realtor in Chicago and help many investors find properties to live in and/or flip.

I am working with a Hard Money lender as well private lenders.  Feel free to PM me.

Also, if you are looking to live in a property that you buy then I would recommend what Zach said and go with a multi unit.

I would recommend putting the new LLC into your current trust.

Lenders don't favor S Corps for buy and hold. An LLC will protect your personal assets so that is favorable. A trust is welcomed by lenders. A trust is the the most expensive.

Hi Edouard!

Property management companies can charge a lot, so are you looking for someone to help you collect rent checks? You mentioned you don't need anything done to the property. If you need housekeeping items done, such as shoveling the snow, cutting the grass and cleaning the common areas I would recommend offering to pay a tenant to maintain the property for a lot less then a property management company.

Hi Alexsander!

A HELOC shouldn't cost you money, but once you draw on it you will need to pay back the interest rate which is usually tied to Prime.

I would talk to someone at PNC Bank or First American Bank or any large of small bank. If you are using the HELOC for another investment then the interest rate shouldn't be that big of deal since it's calculated over 365 days.

Hi James,

Great to hear that your accountant gave you the same advice.  

Have you created a name for your LLC? Is your lawyer setting up your LLC or are you doing it yourself. If you are doing it yourself you will need to go to www.cyberdriveillinois.com and irs.gov to get the LLC set up. Through www.cyberdriveillinois.com it will ask you if you want to set up an LLC with an LLC series.  

As for banks, I would pick a local bank, not Chase, Wells Fargo, etc. I used to work for Chase and don't recommend it for businesses because building a business requires establishing relationships, and where better else then a local bank or smaller bank. I recommend First American Bank or Byline Bank. You will have a separate account for every tax id that you establish, but I would focus on the main one right now for your first investment.

S- corps have passive income restrictions. I would recommend an LLC and then form series of LLCs under your main LLC. Illinois is a state which allows it. This is the best option for buy and hold and the least expensive route then setting up individual LLC for each property

For flips the -Scorp will be your best alternarive.

Welcome Clarke!

Thanks David!!