All Forum Posts by: Account Closed

Hello,

I'm looking for advice on the best way to inform the unlucky party they were not chosen. In this case, there are two lovely families and I feel bad one will not get selected. One family has a higher income and less risk, while the other has young children.

Both qualified financially and seemed to really like the property. Any advice on how to break the news?

0 Votes

Originally posted by @Account Closed:

Hello BP community

I'm curious if anyone else has come across this situation. I'm looking to purchase an investment property with my brother who lives in another state. We are looking at either AZ, FL or CA. I am seeking advice on the best entity to create to allow us to not screw up when the tax man comes. The plan is to be 50 50 partners. We have not decided whether it will be a long term hold or flip. Feel free to share best for either situation.

We already have financing figured out, so solely interested in the best type of legal entity to create.

Thanks!

Greg

HI all - we seem be getting a bit off topic. We've had a couple interesting responses, but wanted to point back to my original request. For those of use investing top markets that may require multiple investors, how do you handle entity creation?

Specifically, I am thinking about buying a property with my brother who lives in another state(FL). What I want to avoid is an issue with who pays taxes, double paying or any other issue that could arise. Would both states want their share of taxes? What are some ways to simplify this?

Thanks for your insight!

0 Votes

Hi Jacob - that's the exact calculation I use. I'm running slimmer margins 20% $500 on a piti of around $2500. Of course i'm being conservative, so it could be better. I'm also focusing on smaller lots, single story homes and newly updated roofs. It's all about proximity to work corridors out here.

For example, San Diego county has multiple, and they attract higher paying jobs, people adjust what areas they want to live in.

0 Votes

Well my friend, that is the beauty in the "knowing". There is gold in them hills, even in California. So far i've made a few offers, where rents would justify a healthy cash flow. I'll admit there's a higher downpayment than the MW, but there's also higher upside on the appreciation front. You just have to be aware of gentrifying neighborhoods.

Originally posted by @Jacob Sampson:

Originally posted by @Account Closed:

Hi Jacob,

Thanks for the advice. I'm not familiar with partnerships but I can do some research. I am looking into those markets, because I am most familiar with them. Invest in what you know :).

I have a pretty good idea of what rents I can generate, and I feel comfortable that markets like SoCal and Phx, etc will be desirable for renters going forward. I'm always open to the insight of others. Where do you invest and why?

Originally posted by @Jacob Sampson:

You could just do a partnership. No real need to get an LLC, though they are cheap so it really isn't a big deal. As a side question, why do you want to start investing in the 3 most inflated markets?

I agree 100% invest in/where you know. I live in the midwest so that is where I invest. My only issue is I only care about cash flow and I don't think you can find cash flow in inflated markets. We mid westerners generally wait every 10 years or so for those markets to break and then sneak in and buy a property or two then wait for the market to inflate again.

0 Votes

Hi Jacob,

0 Votes

Thanks Kevin - I will respond to your direct message.

Originally posted by @Kevin DeVargas:

@Account Closed,

A Limited Liability Partnership would fit you needs bases on the information given. But to give you a better response I you would have to give me more information on your future goals such as will you and your brother continue to purchase properties together?

0 Votes

Hello BP community

We already have financing figured out, so solely interested in the best type of legal entity to create.

Thanks!

Greg

1 Vote

@James Wise very good advice James. It seems we are well aligned on most of your points. I’m planning a trip to go and scope out neighborhoods I like.

1 Vote

Phoenix, Arizona

@Mike M. Thank you Mike! I’ll review what you sent over.

0 Votes

Phoenix, Arizona

Hi all,

This is my first post, I am excited to be part of the community.

A little about myself. I am an East Coast transplant living in San Diego, California. After purchasing my first home last year, my wife and I have started looking towards purchasing additional properties for long term cashflow. We are focusing on Phoenix due to the perceived strong fundamentals, diversified economy and relative affordability to purchase multiple assets over the next couple years. Hold period should be a minimum 10 years, unless capital appreciation justifies selling :). We will look to leverage a property manager once I have something under contract.

Here's what i'm hoping to learn.

1. Who should I be working with as a remote investor? ( I plan on traveling there once I have a plan in place) ( Local agents please feel free to PM me)

2. What submarkets make the most sense to research? ( i'd like to find something relatively turnkey, cashflow positive and under 350,000)

3. Is my budget reasonable? My goal is to put down 20% and go conventional route for financing.

Looking forward to hearing your replies!

1 Vote

Phoenix, Arizona

All Forum Posts by: Account Closed

Account Closed has started 3 posts and replied 10 times.

Post: choosing a tenant and informing unlucky parties

Post: seeking advice on creating an entity for investment property

Post: seeking advice on creating an entity for investment property

Post: seeking advice on creating an entity for investment property

Post: seeking advice on creating an entity for investment property

Post: seeking advice on creating an entity for investment property

Post: seeking advice on creating an entity for investment property

Post: Investing in Phoenix MSA remotely

Post: Investing in Phoenix MSA remotely

Post: Investing in Phoenix MSA remotely