EPISODE 014:
Understanding Organizational and Financial Contracts

Categories:
Strategy & Tips, Investor Interview
Description & Show Notes:
In this episode, we talk about buying in your name vs buying in an LLC, and some advice on partnerships and other types of "corporate" organizational structures.  If you are just buying 1 house as 1 person, you have plenty of options available.  But if you are joining forces with another investor or moving up to commercial property, then there are organizational contracts that are better then just buying in your name, and sometimes the bank will require something called a "single purpose LLC", so we'll talk about that a little bit, as well as how these things affect your taxes and even ways to do some wealth/estate planning for your family too.  As you may have already picked up on, I think that having a good Real Estate attorney is important to give you guidance but also peace of mind.

Then we look at the financial side of things, starting with a bank or mortgage company, and moving on from there.  What are the 2 main parts of a mortgage - and why is that important?  Well, sometimes you may need - or want - borrow from someone you know, either for the down payment or a rehab or just for a large unexpected expense.  And if you understand how that is done, then you can do it without the bank as well.  We'll talk about using IRA's, both yours and other people's, as a source of funds as well, and that can be Roth IRA's and Traditional IRA's.  Another option would be a margin loan on stocks, and you have to know what the pros, cons, and consequences are to using all of these more "exotic" money sources.  Lastly, we circle back to refinancing, and we talk about how you might use it to get a better rate, of course, but also to shorten or extend your payoff period, depending on your goals. 

In the Tips and Takeaways section, I'll compare investing in Real Estate to playing LEGOs, and how the real fun begins once you've got some experience under your belt and you can create the deals you want instead of just buying off the shelf.  I'll also tell you how, why, and when we used different LLC's over the years, how we named them, which ones are still around today, and I'll introduce an inexpensive tool to help ease the fears of your private investors if you are out there trying to raise money.  


Links from this episode:​​
Hosted by:
Chris Kearns
- Investor, Broker
- 2x Auburn Grad
Sponsored By:
Auburn Investment Properties  | 852 N. Dean Road, Suite 100, Auburn, AL 36830
  •