Diversity In RE Portfolio
Do most investors find a niche and stick to it or do yo find yourselves doing all facets of real estate investing. For example, are rehabbers only doing rehabs to flip or are you also doing leases and tax leins, etc...?
I suspect most investors concentrate on a single niche technique and get quite good at it. They may have an occasional foray into another niche, but will likely say close to what they do best.
I have been feeling stuck in a niche lately- I rehab and rent and it is good, but I have been considering sticking a toe into some other waters lately and seeing how they feel. One tends to do what they know works, but you can get bored with it, too.
Chris
That was kind of what I thought. I want to do more on investing, but not sure which way to go. I work full time + and do not have alot of extra time available to me. I like the idea of rehabbing, but would want to do alot of teh labor myself. It would be pretty difficult with my schedule though.
So how successful in REI are folks who work full time?
There are lenders out there that will lend to an LLC. I know Luxury Mortgage used to.
Thanks so much or the information. Now at least I have some options of what I can do. I like that idea about the email. If anybody else has any advice or other mortgage companies that will lend to an LLC, I sure would appreciate it. I would hate to be forced over to the commercial side and not be able to utilize a 30 yr mort since this is only a duplex. Thanks again.
You can expect a 25 year amortization with a 3 - 5 year balloon with a rate between 6.5 and 7 from a smaller local bank.
Your lender is correct and almost all mortgage lenders I know of follow the same policy. Unless you are looking to pay higher commercial rates, the cheapest way to finance is to put in your name and then quit-claim your interest back to the LLC if you so choose.
Holding it in an LLC is going to change little. If your worried that a tenant is going to slip and fall and sue you personally... Well they are going to do that even if the property is in the name of a LLC. Ask an attorney and they will reaffirm.
Thanks a lot for the info.
it depends on many factors including how risk adversed you are, cash flow or appreciation, do you want to be a landlord (e.g. apts), etc.
On the conservative side, you might look for a commercial building w/ a NNN lease and a credit tenant.
On the aggressive side, you could be a equity and or debt JV player in some opportunistic development/redevelopment play.
just 2 possible positions.