Starting Out - SOme Questions
First off, there is a lot of great information on this website. I have really enjoyed my short time here since finding it a few days ago.
I have some questions and would like some advice. I am currently researching how to get started with:
I have a group of 5 individuals who want to partner together and buy real estate for investment. We would like to concentrate on duplexs/town homes (not big multi-family apartments, etc). We would like to each invest 5k to start, for a total of 25k.
1) Do we setup a LLC? Or a Trust?
2) For loan purposes, do we just go through a personal mortgage lender?
3) When, if ever, would we have to secure a loan from a commercial lender?
Our intention is to start small, build properties, capital and credit. Perhaps in 5-10 years we might be looking at larger multi-family complexes.
I appreciate any help you can provide.
Best Regards,
Atna1
You need an LLC. You will need a good operating agreement that spells out how decisions are made. A trust is a good tool to hold title, but it doesn't protect you from personal liability.
Isnt this site awsome. Im fairly new ( to investing) also, but have been in the lending business for three years.
Q1: I not totaly sure but, i believe the documents for these can be had online, or some other self help legal business, and then filed at the appropriate office.
however, i would consult a repritable RE attorney. If you have not already.
Q2:For loan purposes, do we just go through a personal mortgage lender?
Yes.
Q3:When, if ever, would we have to secure a loan from a commercial lender?
when the units you want to buy are 5 or more units. 1-4=residential, 5+=commecial
Best of luck to you and your partners
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