All Forum Posts by: Rodney Lorenzo

Hi Corey,

I'm a newbie and have set up an LLC because I'm aiming for commercial investments. You may not need them at first with smaller investments.

Like Ken Aim said, the more layers between your assets and lawsuits, the better. Multi layered asset protection is key to preventing the piercing of the veil. Especially when you set up the controlling entity in states that legally do not have to reveal the owner's identity, such as Delaware or Wyoming. 

Think of an LLC as a box and that you're putting each separate asset into its own box. Worst comes to worst and you'll lose one asset as opposed to all of them.

Hi Dustin,

I'm hoping to invest commercially as well, but by what I understand, commercial units can take longer to turn over. If the cafe and boutique have been there for a long time and have an established clientele, you could get away with it. The plus for you is that you have a vacant apt that you could fix up and charge market rate. 

Interested in 6 or more units, all residential. I'll consider mixed use depending on the circumstances. From Hartford going West and South. Interested to see what are interest rates for these properties. 

I was the most surprised in thinking that having enough for a down payment and a credit score above 700 would land me my first deal with no problem. WRONG. It's challenging as it is for a newbie, but in a sellers market, you're competing with more experienced buyers that beat you out with no contingency offers. I also didn't expect lenders to change terms after going into contract, wiping out my cash reserves and closing costs, thus killing the deal. In this market, lenders don't seem interested in your first time business hoping to make you a repeat customer. I was also flabbergasted at thinking RE agents do more than just sign you up to get leads from the MLS and sit back letting you bring them deals. How many times did I have to reach out to the listing agents for financials because by the time the agents got them, an offer was already accepted. Some take on too many clients, making you feel like a number. Educate yourself by networking, reading books, listening to podcasts, etc, because no one will do it for you. Will this deter me from investing in RE? Not by a long shot

Hi Joey, 

It depends too on how wide of a region you're looking in. Some agents are limited to a certain area, so if you're looking across an entire state like I am, I have to use more than one agent

Hi folks, I've seen some posts that talk about business cards being made up once you acquire a property, to hand to your tenants. Some landlords prefer to engage more with their tenants, some even on a first name basis. Others prefer more distance and will not disclose their true identity to their tenants. If they go in person to the property, they'll say they're the property manager. I know we live in a very litigious society, so what are your thoughts on how close you get to your tenants? With a PM of course.

You can set it up yourself, but because I wanted professionals involved in the set up with all that legaleze they understand better than I, I consulted with Pratt/LeFevre. They set up my corporation and LLC's, giving me multi-layered asset protection

Looking forward to the meetup!

Hi Jason,

I've met other investors that have done it alone by starting small and it worked out for them. Unless you don't know how to run the numbers, screen your tenants well or put money aside from expenses, then I think taking the risk to do it alone should be fine. And if you fail, oh well. One learns by their mistakes. It's bad enough that we already live in a discriminatory society that judges you based on how much experience you have, how much money you have or which zip code you live in. I can't let that stop me from pursuing my goals

Hi Taylor L, 

Well if bringing on inexperienced passive investors is not something most experienced ones do, then I really don't see how we even have a chance and pretty much tells me to go it alone, as the other posters on here have done and have preferred. In the time it takes to build relationships with other investors (and that's if they give you the time of day), I will have bought 2 or 3 properties by now. I'm going to take time to get to know these people and won't just make an offer to someone I met one time at a networking event. But that's just me.