All Forum Posts by: Rikard Lorén

When buying a property and the exit is to refinance over and over, what is the best balance to have when it comes to cashflow and using the NOI to improve the property to grab more money at the refinance ?

And does the cash for improving the property and increase the value comes from investors when buying the property or is it from the NOI ?

From my understanding it comes from the NOI but I guess you could bring in extra in the beginning to speed up the process?

Cheers!

Hi James.

Yeah, it would take time to get it up and running, added risk and risk of not the same/higher income.

I don't dislike my job, it's just boring, the business would be the same type of work but more of a niche with my personal service.
I will think it over, thank you for the input, cheers! 

Hi Bram.

Thanks for your opinion.

I can agree that it's personal considering that I have too choose between a day job with limited salary ( safe/safier )
or take a risk with potential upside. *From my understanding, the "safe" job I guess will get me the loans while a firm will be more of a challenge...I mean, I like stable but you also have to risk some in life, yeah? Calculated risk of course....

*W2= regular day job I presume ?

So, my question is pretty simple: If you had the choice to continue working at your day-job with fixed salary OR quit your day-job to work and build your own firm as a sole proprietorship with more earning potential, all this while you invest in Real estate on the side so you eventually can quit working and only focus on real estate later on 3-5 years, what would you choose and why ?

Jonathan Twombly, thank you so much for your opinion.

I do get the limitation for protection with having each and everyone in 1 LLC each, that's my plan.

These "personal expenses" would be work expenses or is it not seen as a work expense? it's to envole the business after all...

Allright, I don't know if it works exactly the same here in sweden but I guess it's a bigger % chance that it is the same.



Okay, let us assume I go forward with this plan, for each deal I create a new LLC that is alone only for the property and not linked to anything else.

Do i get another LLC that I can channel the cashflow to ? 

*Driving car around for properties/meetings, office etc ?

what I mean is: In Tom Wheelwrights book "Tax-Free Wealth", he wrote about being a super tax-payer and for example make your expenses a business one. 

Example: The purpose of the meal must  must be business, this means you have to have a conversation with your dining partner before, during or after the meal or traveling away from home on business.

If you are a investor, what kind of business do you have to write off business meals when talking to partners about business to increase the wealth of the business? Or do I go on business meals private and write it off private and not writing it off from my business ? Don't I get a business as a investor ? Do I only create LLCs for real estate deals ? 

Is it his CPA firm that he's talking about in his case ?

Feel free to enlighten me!

Alright, thanks for your opinion Alex Deacon !

Hello everyone, I have been asking this question before but I felt that I didn't get a good answer.

So, I'm wondering how you guys have your buisness setup for Real Estate.

Goal: Buy multifamily buildings and keep going.

So, I will set up a LLC for each and every deal that I will do, but in what way?

Do you guys create a LLC for every property that you are buying, and take the cashflow from them directly into your pocket and take the tax consequences that they bring?

Or do you have a Mother Company where the cashflow from your properties is flowing and take the cashflow out from the mother company instead thru dividends ?

Or how do you have your company set up ?

Best Regards, Rikard Lorén