All Forum Posts by: Joe Luciano

Colin - Thanks for the encouragement! We just finished an addition on our home. We still are paying that off. I have a wife and 3 kids and don’t want to risk too much because it has the potential to affect them as well.

I too want to reach financial independence and even want to bring in my daughter (9 y/o) eventually as this may be a good fit for her. She’s borderline special needs and may not end up going to college and I think this would be great for her.

From what I’ve read at BP it’s all about finding the right deal. I really want to take the plunge. The question you posed is exactly what I’m trying to figure out. How do you repeat the process? I want to figure out how to keep the progress going and be able to move on to the next deal instead of sitting around. Hope that makes sense :)

This is a great question and I’m interested in seeing some experienced members give advice on this. I have not taken the plunge yet and quite easily could be in the same position after my first deal.

It sounds like going forward, as a new real estate investor, I would keep everything in my name. I don't need to form an LLC, but it is recommended to have a liability insurance policy. Once I hit 10 properties, then I'll have to get commercial loans in order to purchase my 11th property and up. But at 10 properties, is there a need to form an LLC? Also, why must I get commercial loans after 10 properties? Thank you for all the replies!

I'm trying to understand whether or not it is recommended to create a LLC or S Corp from the start. I plan to buy and hold multi-family homes and create a passive income. Do I wait until I have 5 - 6 properties and then form an LLC or S Corp? If I make an LLC or S Corp, how do I pay myself without having the income be viewed by the IRS as "Earned Income"?

Yes, I definately value buying smart over saving a few buckx.

I am trying to figure out what a "Buyer Broker" is. Are they like a real estate agent with less perks? The main reason I'm asking is because it sounds like you can share the commission on the purchase of a home and put it towards the closing costs for example. How do I find a buyer broker? If I find a home I'd like to purchase, can I just call up a "buyer broker" I know and will he/she expect to split the commission? What are peoples experience with buyer brokers? I just want to make sure I am purchasing in a smart way. Thank you in advance.

OK... You guys are fast. Excellent suggestions!

I am trying to find a good resource for learning what other properties are renting for in my area. This way I can have an idea of what would be a fair rent to ask for on a property. Then I could look at the asking price of a property and know if it's in the ballpark to allow a cash flow. Does anyone have a good strategy or resource?

Wow! Excellent responses! Thank you everyone. I now better understand this. It didn't click that you would only pay those taxes if you SOLD years down the road. I don't have to sell years down the road, I can just hold the property until I meet my demise. ~Shudder~ Thanks guys!

What happens when you decide to stop buying properties? Won't you have built up and built up an incredible amount of taxes you will need to pay? Is it better to pay as you go? You'll need to pay eventually, right?