All Forum Posts by: Jeffrey Holst

Im in Hixson.  Best of luck and welcome.  Let me know if I can help at all.

I got mine primary to do brrr and have not regret it. It allows you to capture a little extra money on each transaction and also gives you easy access to deals and information.

For her the best bet might be to form her own LLC and have the two llcs take the property has tenants in common. You could also form a joint LLC that is owned by her and your LLC 50/50. Either would likely work about the same.

Originally posted by @Amit P.:

Greetings BP!

Starting my journey into REI. I'm ultimately looking for passive income and continue with my (non real estate) career. I do not plan to spend a lot of time on it (compared to day job) therefore it looks like buy and hold is the way I need to go? A lot of material I've read says 'money is made at the buy'. I've seen a few Turnkey companies (Memphis, TN, Birmingham, AL & Atlanta, GA) which seem compelling based on my situation but from what I have seen there isn't money to be made at the buy given the markup the providers make. I'm in East TN so property prices are not too bad in this area but a lot of properties I have seen struggle to hit the '1%' mark.

House hacking isn't really as option, we're not wanting to move :). So curious if anyone has advice and suggestions that may have been in a similar situation. Any TK providers in East TN? I have spoken to a realtor in the area but that was a fail, I don't think they had the investment mentality.

I'm open to partnering upon deals but really not sure how to find those people look.  Curious on feedback on TK based on my scenario, am I missing something? Or should I be doing something differently?

Also there still are 1% deals to be had on MLS and elsewhere in Chatt they just go fast.

Chattanooga meet up is great.  I'd be remiss though if I didn't mention the reia meeting which can be hit it miss.  It's monthly on the first Thursday and it happens to be this week so if you want to jump in that might be a good place to start meeting people. I'll probably be there and I'd be happy to meet someone who's in the area and looking to sort out a plan.

Best of luck

It can be good if the deal makes sense.  My suggestion is to analyze it like any other deal look at all the numbers and do your due diligence on each property.  Some times bundles are cheaper but many times they package price is more than the individual properties would sell for and if thats the case its always a bad deal IMO

I think if you are going to have a partnership you should definetly have outside legal advice on the structure. Typically what I have seen is people come in with a list of the key partnership points and then have an attorney draft the agreement for them. Id consider an LLC or some corporate form as well. A decent attorney should be able to advise you on the same.

Id still carry an umbrella on the LLC holdings, Some insurance companies aren't able to write for LLCs though so you definitely need to have this conversation with your agent. You may need to cancel policys and reissue at the very least when you transfer the property.

I think a personal umbrella is only slightly less necessary when holding in LLC. Piercing is rare but people often find other ways around it. For example they say you individually were negligent. Now if you never met your tenant and had a outside property management company and never personally inspected the property you would likely have a perfect defense to that claim but even then they could sue you and you would have legal fees etc to defend it.

Best of luck

Its still possible to find value add but they are getting harder to find.  There really aren't brokers who do only multifamily in Chattanooga the volume is too low for that.  There are several that have somewhat regular listings but it's not like the big cities where there are whole firms dedicated to multis.  

If there is anything I can do to help you in your search let me know.

I am a big fan of the market here in Chattanooga.  The economy is growing unemployment is less than 4% state wide in Tennessee and there have been a number of new companies moving to Chattanooga over last several years.  Amazon and Volkswagen are the big one but there have been dozens of others moving in as well.

Like all cities there are some areas that arent great and others that are much better.  I have been doing well on my multis in Chattanooga and the surrounding areas.