All Forum Posts by: Nareth Y.

Peter,

Thank you for bringing this up because I actually have several questions and hope you or any other BP members could help clarify this.

The reason why I wanted to use my personal name is because I didn't think an LLC would be able to qualify for a mortgage because its new entity and without established working business history, I wasn't sure they would lend to the new entity.

So my approach would have been to buy with personal loan and quitclaim it to the LLC. However, if I could purchase with a commercial loan under the LLC and put 20-30% down wouldn't be a problem but not sure how the qualification would work?

Would they want a personal guarantee and request my 2 year work experience because (embarrassingly) I don't have 2 years of solid reported income, after I graduated I worked as a leasing agent and after a year as I went to apply for jobs, the job market tanked and economy sucked. But real estate is what I want to do anyways.

Anyways, having funds of 20-30% to qualify for a commercial loan wouldn't be a problem as I would be able to get that as I am now starting to close some deals and be able to raise investments for it as well.

My questions are: Would I need someone to co-sign the loan? If so, could I have them be the credit investor but I be the capital investor and put that under the LLC? How would a new entity qualify for a commercial loan? Is there a limit on the number of commercial loans I can get? Also, if I were to be able to quitclaim several free and clear properties into the LLC as well as a cashflow multi family (6 units) into the LLC would that help the entity at all in getting a commercial loan?

Thank you for viewing and the BP members who offered suggestions, advice, and guidance.

thank you all for your warm welcome....

Blake, thanks for all the helpful suggestions and tips, very much appreciated.

I would like to buy rental properties and be a landlord as there are plenty of great deals out there but in a pro tenant state like MA and having a few bad experiences with tenants and warnings from lawyers with horror stories, I am hesitant to go through. Some horror stories included tenants not paying rent and staying up to a year before being removed. Tenants would not pay rent, when you go through with the eviction process, they would call the city inspector, and the inspector would cite any and every small detail, no property is perfect but they’ll always find something as minor as it is to write you up. Tenants are allowed in MA to withhold the rent until repairs are made. Once you make repairs, they’ll mess it up and call the inspector again. And you can’t evict them because it would be retaliatory.

“If the landlord tries to raise the rent, terminate or otherwise change your tenancy within six months of when you contact the Board of Health, join a tenants’ organization, or exercise other legal rights, the landlord’s action will be considered retaliation against you, unless the landlord can prove otherwise. The landlord will have the burden to prove that your tenancy was changed for reasons other than your having exercised your rights (M.G.L. c. 186, § 18).â€

“The Massachusetts Supreme Judicial Court ruled that when a landlord fails to maintain a dwelling in habitable condition, a tenant may properly withhold a portion of the rent from the date the landlord has notice of this breach of warrant of habit-ability. Rent withholding can be a useful tool to force repairs, but it is a serious step and should be dealt with carefully. You may want to get legal advice before withholding your rent since the landlord may try to evict you for non-payment of rent.â€

Renting in low income housing makes sense as properties are cheap and could be profitable as long as you collect rent, the problem is finding employed tenants who pays rent. I don’t mind Section 8, don’t mind making repairs as long as they are reasonable but has anyone have experience renting in low income neighborhoods and has been successful? Anyone who have done it in a pro tenant state like MA? Any suggestions, tips, advice etc? Can you be successful in the rental business without losing your shirt?

hello BP world, My name is Nareth, 25 yeras old, began in real estate at 21 managing family real estate portfolio 16 units while in college when my dad passed, had to step up. But there is so much to learn but I feel that its my time to branch off, take some risk, and work on establishing my own portfolio. I would like to buy, fix, and hold. I am licensed real estate agent and newly licensed loan originator.

I'm interested in incorporating into an LLC, buy properties in my personal name with co-borrower (considering I do not have 2 years of established work history) and transfer to LLC, and build off on it. I would have about $50k to start off with. Are there any suggestion, tips, advice, word of wisdom you experienced professionals have for me?