I am working in Iraq and making a big salary that I want to leverage. My plan is to buy 10 to 20 units over the new 1-2 years in the western Pa area. I am looking at mainly duplexes and small apartments. Here are some questions I have.
1. Should I start an "S" corp and buy through a company instead of as an individule?
2. Is an attorney a good way to begin the prosses?
3. What is a good way to network with other investers?
4. What is the best options for getting finance? Morgage co, Bank, Others
1. Most recommend an LLC, not an S corp. I personally own 11 units and have neither, rather, we use an umbrella insurance policy.
2. I can't imagine that it would be. The only time I've involved an attorney in my real estate dealings was when I did my first eviction. What are you anticipating needing an attorney for to purchase property?
3. Join a local real estate/landlord's association. The networking you get from those organizations is invaluable. You will meet other local investors who know about the local market, have recommendations for experts whose help you might need, and have experience dealing with local laws.
4. I have a mortgage broker who helps us locate the best deals. Some have relationships with local banks and if you're one of those, that's definitely a plus as a local bank where you know people will give you a great deal more flexibility than a big bank that you just walk into without having any relationships there. Some also recommend credit unions as they have generally favorable rates.
Although, one question... isn't there double taxation issues?
No double taxation issues with either LLC or S corp (I assume you're referring to the question #1). There would be with a C corp but I rarely if ever see those used for real estate deals. Occasionally you see the limited partnership as well, but again, no double taxation there.
Thanks... that's an old issue that I had with a deal that I was looking to broker for someone a few years ago... they had it in a C corp I believe, and they never transferred it out... think that 86 was a year for it...
Anyway, taxation and entity holding has never been one of my strong areas.