-I'm 30 years old and own my home
-I'm am looking into investment property (duplex, townhome, or flat) between $145 K - $180K
-I would like to invest for either 7 or 10 years using an interest only loan
-I will use the property as rental property
-Should I become a LLC to protect my home?
Suggestions?
Thanks
Fri Sep 09, 2005 12:23 pm
sayyes Preferred Member
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If I were you I would establish the LLC. It only costs a couple hundred dollars and will give you better night's sleep for years to come.
i know about this everyone has different question when they invest money in real estate market. at this time best property website that will help you to find the best property and provide the each detail of the property that ensure you to buy the property....
Fannie Mae and Freddie Mac require 20% DP on a SFH and 25% DP on multiplexes when investing in Real Estate, so unless you use hard money or a loan from someone else I don't see that being possible.
Risk comes from not knowing what you're doing. (Warren Buffet)
Fri Feb 27, 2015 4:33 pm
selina9 Contributing Member
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Facebook.com/earnmoneyonline.a2z
Thu May 19, 2016 7:30 am
jessaragen New Member
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Short term rentals promise you decent returns - about 5-7% yields. Hiring a management company helps to avoid problems with finding new tenants. Its service costs 20−25% of the total rental revenue but the expenses will be rewarded with higher occupancy rates. The best option is a one-bedroom apartment somewhere in the city center popular with tourists. Barcelona might be a good option https://tranio.com/spain/catalonia/barcelona/ (it is a top-notch destination for the British)
Wed Sep 07, 2016 8:59 am
Dixie New Member
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The moment you deal with people and/or situations where there could be a legal law suit you need to have some sort of protection. An LLC is not the only way to go, and although I am not a lawyer and I am NOT giving you any form of legal advice, it is my personal (strong) opinion you should go for an LLC.
You can google the pro's and cons, but you will come to find it is not worth the risk not being protected!
Last edited by Dixie on Sun Dec 11, 2016 7:03 pm; edited 1 time in total
Sat Dec 10, 2016 3:22 pm
oldguy Senior Member
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quote: I would like to invest for either 7 or 10 years using an interest only loan
I was a landlord for 40 yrs. 4 single-family houses. I used IO loans when they were available (as a way to retain the use of my own capital for more investments). The ones that I negotiated were IO for about 10 yrs followed by 20 yrs of amortization. If rates were favorable at that point, I refi'd into a 30 yr FR.
But you'll find that lender will not loan money to an LLC, especially on highly leveraged property. And as soon as you use personal money to make a down payment, the window between you and your LLC opens - and litigation flows thru to your personal wealth. A better method might be to use an umbrella policy to protect you against lawsuits.
Sat Dec 10, 2016 4:10 pm
oldguy Senior Member
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Whoops - I just realized that this post is 11 years old - I guess that he made his decision long ago and the outcome is now history.
Sat Dec 10, 2016 4:15 pm
Hoelet Preferred Member
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Hi there, guys! What do you think about real estate in Europe? Is it profitable currently?
Mon Oct 09, 2017 12:57 pm
Butl Preferred Member
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I think it is very interesting. I would recommend you to take a look at the blog from https://www.glamourapartments.com/services-for-sellers/ It covers some basics of real estate business in Paris, France. I think it is one of the most prospective countries for investment currently and you will find it interesting to you. What do you think?
There are different ways to increase the value of real estate. For example, paint the walls and add something comfortable to the interior. For example, I recently decided to make my garden more comfortable for family outdoors evenings, so I decided to buy and install Vinyl Pavilions. It seems to me that it’s really cool to look and it’s easy to install without spending a lot of time on it, isn't so? I think you need to take care of how your property will look. This sometimes brings more stable profits than risking the purchase of an inexpensive apartment in an unsafe area.
