All Forum Posts by: Jefferey Chheuy

I’ve heard a couple things but just curious about what other people thought.

I have 3 properties, 2 with mortgages and around 215k owed but valued around 360k total. Should I have these 3 into an llc or under my personal name is still ok?  since I was decently leveraged before I decided to have it under my personal name but now it’s starting to have a little more value than I’m comfortable with under my name. 

What you you all think is it time to create an llc? And how much do you think it should cost in lawyer fees to do that (writing up new deeds is - quit claim should be ok? And creating the llc)

Thanks Cameron and Zach took your advice and will hold off for the next one. My realtor and pm also didn’t think 75k would be appraised, so I think I made the right choice.

Hey Zach thanks for the quick response! I’m going to try that now!

Hey everyone I have a offer of 25000 that was accepted and it’s not in the greatest area the few houses around it seem fine but after you go down the next block it doesn’t feel so safe. The rent is around 600-650, there are no recent comps for what it will be worth but a house down the street has a zestimate (I know it’s not accurate) or 75k and that’s what the wholesaler thinks it’d be worth after repairs. I think it will cost about 25k to complete project (I’ve never done one before but that’s what I estimated using a repair calc I made.) I’d be all in for about 50k and I think it’ll take 2-3 months to finish repairs since it’ll be my first time working with a gc. I’m unsure about the and the location arv so was wondering what y’all thought about this deal. it’s in Spartanburg sc. 

@Sean Morrison thanks for those topics I’ll definitely bring it up on Wednesday.

@Jay Dimacali it’s our first deal together but not my first property. we actually bought it cash and will have contractors working on it so my thought was to have it in llc just since there’s more liability with people working on the house since it’s and older one and we’re both pretty high paid w2 workers. Would those be good reason to have it in llc or do you think we should still hold off?

Thanks for all the tips and advice everyone! So I guess it seems like it shouldn't be too difficult but might still consider lawyer since my brother is married and not sure how that's going to work and we're unsure of the best way to set it up for tax reasons. And yes he is in California, what would be the downfall of having 2 single member llc's if he lived in California?

Also are there better tax benefits from setting it up one way or another? My accountant just told me it was easier to set it up as a single LLC and referred me to a lawyer :/ wasn't very helpful.

@Will C. Thanks for the advice bud. It's unfortunately negative by 130/month after all expenses. It was one of my first homes, I got too excited, and it doesn't cash flow positively. I didn't know numbers very well so I wanted to try to fixing the problem with a refi, learned a lot at least lol. 

Property is rented but I think I have it under market rent so will raise it next year; goal was to at least have positive or even cash flow so I can work on other projects without having it drain my cash flow.

I'm not so great at finding deals or rehabbing yet so creating a deal is hard right now. But, I did just get an offer accepted on a fixer upper to learn the rehabbing process and will be trying to buy some wholesale deals. Going to attempt driving for dollars in in a couple weeks also. Hopefully I'll get better moving forward.

@Zachary Bohn thanks for the response bud, our plan is to brrrr the properties and buy cash initially. We are doing equal money, using property manager, and we’re trying to split up work 50/50. In that case you think we should just try to set up llc ourselves? 

@Nicholas Covington yes I was going for conventional. I checked with a couple other banks and a mortgage broker but no luck yet finding a better deal. I'll keep looking!