Newbie With Issues
I'm new to real estate investing (no properties...still trying to figure out where to start). I read the Rich Dad real estate book by DeRoos, Summey and Dawson's "The Weekend Millionaire....", and currently reading Rich Dad's "Own Your Own Coorporation." I have two main questions.
First, I'm in the military and want to accumulate properties in the area I plan to retire in vs. properties in my current duty area. Is it a bad idea to invest in an area that I don't currently live in?
Second, I would like to accumulate and rent properties under a seperate entity, possibly an LLC. Should I accumulate properties first, then start an LLC or vice-versa? Any advice would be appreciated.
Thanks :-?
I purchase many homes from folks in the military as they are not able to keep up the payments on their home when they get transfered or deployed.
I would advise you to consider your situation but if you do feel you can give the time and effort it takes to invest, then I give you encouragement to do so!
I do not invest where I do not live. I manage my properties myself so it would be essential to find someone to manage your properties while you are away.
I would definatly set up an LLC before aquiring property. An LLC serves as asset protection.
You may be forced to purchase property in your own name first and then transfer it into your LLC. Although this violates the due on sale clause, you probably have read that as long as the payments are made the bank does not care.
GOOD LUCK and Welcome!
Thanks for the advice Myfrogger. I will looking into setting up my LLC. While I'm doing that I plan to hook up with a local real estate investment club to get to start networking.
Thanks again,
ew
First, let me say GO ARMY. Been there and done that. Secondly, I would invest where your at right now. It will be difficult to invest somewhere else if your not there. Good idea on the LLC and the club. Good luck.