All Forum Posts by: David Tipton

What @Wayne Brooks said.  Also, if the unit is subject to rent control, such structuring may not be legal.  It really depends on your exact situation.

Welcome @Elizabeth Garcia.  It's good to start young. There are a ton of great free resources on this site that will help you get an education. Be wary of anyone trying to sell you something. There are no "secrets" and no one is going to do the work for you. 

I would recommend starting out with the podcasts. It's a great way to learn about the various strategies out there. It also is invaluable for learning core concepts and lingo. I'm in the education phase as well and can recommend some books I found helpful if you PM me. 

There are actually some really affordable markets near where you are.  Pick one (or a couple) that makes sense for you and learn it.  If you look around on Redfin/Zillow/Trulia etc. at both recent sales and current listings you will start to form an idea of what prices are like. Otherwise it's hard to separate a deal from something that is just cheap. 

Hey @Cooper Shelton. Welcome. What business are you in now?

I would recommend the podcasts as a great place to start on here. 

Hi @Christy Snoke.  It could, it all depends on how it's done and your jurisdiction and what your exact situation is. Keep in mind that the thread linked to by @Account Closed related to California, a community property state. I would recommend speaking with an attorney in your area who specializes in these types of things. 

An LLC is not a "magic bullet." It will not completely shield an individual from liability. A court can "pierce the corporate veil" for companies that are essentially alter egos. It depends on a lot of factors so you should definitely speak to an attorney before setting anything up.

You may also consider other options (short sale, loan mod, etc.) to dump the property without going to foreclosure (if that's the issue you're having). Hard to say without knowing your full situation and what exactly you're trying to protect yourself from. 

Welcome @Aaron Markle.  

Welcome @Paul Alvarez! You should check out the podcasts and listen to @Brandon Turner do a killer job of interviewing folks doing all different types of investing. A really great way to see what's out there. 

Welcome @Anthony Medina. Lots of good information here. Check out the Ultimate Beginners Guide if you haven't yet. 

Welcome @Sunny Dutta.

Welcome @Austin Li.  What led you to investing in Downey?

Hey @Anthony Johnson, welcome. I've found that duplexes in LA tend to be priced more like single family homes than income properties. You may have a bit more success looking at 3-4 units, but things are tough in this market. Rent control doesn't help.

Using gross rent multiplier can help you eliminate a lot of properties without wasting your time on the calculations. GRM is the purchase price divided by total yearly gross rent (before expenses). I use 15 times gross as a very very rough marker for what retail value should be in LA. If you find properties listed for less than 15x, it may be worth further analysis. If it's over, it probably won't work out. Some places are selling for over 20x gross in some areas, which seems totally insane. I'm not saying to rely on it as the be-all-end-all, but it's a good shortcut for the LA market as a whole. It may vary in certain pockets, but it's a good starting point IMO. If anyone else has a better metric is be interested in learning about it as well.