Philadelphia Business Lawyer Sarah E. Holmes
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What It's Really Like to Invest in Real Estate- An Interview with Jeanne Whipple of Philly Home Girls

4/29/2019

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People often have unrealistic expectations about what it's like to invest in property. 

They buy a property in a terrible, so called "up and coming" area, hoping to buy cheap and sell high. It's not a neighborhood they'd want to live in, yet they expect the property to magically appreciate and that tenants or a new owner would want to live there.

Other people go into business with a partner to start investing and expect it to be easy peasy. Partnerships are rarely easy.

In this interview, we talk to Jeanne Whipple of the Philly Home Girls. Jeanne's an experienced realtor and investor. She's even done several larger scale residential developments.

Hear tips from Jeanne about how she chooses what property to invest in, and her top tips for new investors.

For further information from Jeanne and Philly Home Girls, visit https://www.phillyhomegirls.com/

If you are an investor and need help setting up your investments and running them as a business, reach out to our office for one of our real estate investor packages: www.phillysmallbusinesslawyer.com
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Do You Need a Property Manager For Your Rental Properties?

4/22/2019

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Are you an investor that's going to manage your rental properties yourself in order to save money? There are a number of reasons why that could be a terrible idea. In addition to costing you time, you could be missing out on an easy way to shift some of the risk and potential liability to another party. With a properly constructed contract, you might be able to mitigate some of the risks if the property is not maintained well.

Give this episode a listen to see if you are being pound foolish in managing your own property.
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I Bought A Property And Now I Need A Commercial Lease!

4/17/2019

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In this latest video, find out what you need to consider when you buy an investment property and are now going to lease it to commercial tenants. You'll need a lease, of course! Commercial leases are not like residential leases and involve many more terms and considerations. Watch this video for some critical tips.

If you need help with a commercial lease for your property, don't hesitate to contact our office.
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How To Finance Real Estate Investment Property: An Interview with Senior Loan Officer Joseph Scorese

4/1/2019

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Many investors have questions about what kind of financing to use when investing in property. Should they form an LLC? Can the LLC borrow money? What happens when they use personal financing but want to move the property into an LLC?

Many people don't know that the kind of financing they choose has a big impact on these issues. It's important to be careful about the choice of financing.

Here's a snippet of what to do if you want to finance a property and put it in an LLC:

Sarah Holmes:  Okay. So we get a lot of questions from people about the loans and when people come to me often they've already built up a portfolio of properties, maybe got five or six properties, and they have them all in their own name, and usually they do that because they've gotten one of those low interest rates that they qualified for, based on their personal credit. But from the liability side, on my end, I don't like to see that, because now they're exposed, their name's on the deed, so they always come in asking, "Well, how can I put in an LLC?" And most of the time I can't move that property into an LLC because it's going to violate their mortgage clause. So they try to think of a way, going forward, as to what kind of financing they're going to use.

Sarah Holmes: So if someone wants to put the property in an LLC, is that a different kind of financing than they've probably been using with the low interest in their own name.

Joe Scorese:  Well, good question, because if the borrower has stabilized rents, they have decent credit scores, maybe around 680 or plus, like 700 score. We can typically just refinance their property out of their name into an LLC. Now, the catch would be, there's a couple of catches. One would be that there's transfer tax, depending on what county you're in. So that you're going through a full refinance to take it out the personal name, and put it in the name of the LLC. It also has to make sense bank-ability wise because you don't want to put someone in a bad debt income circumstance. So you've got to evaluate that.

Joe Scorese:  But what one good thing is, they can treat that property now as a business, and issue tax returns and issue a K1 where that property and that mortgage is not reporting to their credit personally. Okay? So you could eliminate a lot of debt to income in the personal name, after you built up a decent portfolio in your name, and start moving them over into the portfolio loan, because, under your personal name, you're only allowed to have a personal home mortgage plus nine other mortgages. One can be a secondary, and then eight investment properties. So you kind of gets them back to ground zero to start over again if they want to buy more properties in their personal name.

Joe Scorese:   So it gives a lot of leeway to an investor. They have options at that point.

Sarah Holmes:  Okay. But what if they have multiple properties and we talk about the liability, and we decide that, for best protection purposes, they might need multiple LLCs. How complicated does that get on the financing side?

Joe Scorese: It would get more complicated on their side with a CPA, if they don't understand how to issue K1s, and personal returns. I mean business returns. I'm fine with it if they want to use a special purpose LLC for each property.

For more information on Joe, you can find him  on Linkedin as Joseph E. Scorese. On Facebook, Joseph Scorese. And Firstrust.com you could look up loan officers,  under the Firstrust.com and it's one 'T' in the middle, FirsTrust.com. 

For help in setting up your investment properties as a business, reach out to our office anytime or call.

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    Author

    Sarah E. Holmes is a Philadelphia business attorney and strategist that helps start ups and established businesses looking to expand, protect their assets and increase their profits in an approachable, down-to-earth way.  When you're looking for a business lawyer in Philadelphia, the Main Line or New Jersey, we can help.

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Holmes Business Law, P.C.
​Two Convenient Locations- Main Line and Center City
40 E. Montgomery Avenue (all mail)
4th Floor
Ardmore, PA 19003
and
1515 Market Street
Suite 1200
Philadelphia, PA 19102
215-482-0285
 

info@phillysmallbusinesslawyer.com

All site content is subject to copyright 2021 by Holmes Business Law P.C.
This website and its content herein constitutes attorney advertising.  Any content on this website should be construed as informational, not legal advice.  No information on this website is intended to create an attorney-client relationship.  Only a signed fee agreement between Sarah E. Holmes and the client will establish an attorney-client relationship.  Use of any information on this site is provided "AS IS" with no warranty of any kind, either express or implied.  Always consult with a licensed attorney in your own state for legal advice.
Photo used under Creative Commons from AK Rockefeller
  • Home
  • Attorneys & Areas of Law
    • Business Entities >
      • Corporations
      • Limited Liability Company (LLC)
    • Business Immigration
    • Business Purchase or Sale
    • Raising Capital & Investor Agreements >
      • Promissory Notes and Debt Financing
      • Private Placement and Equity Financing
    • Business Contracts >
      • Consulting Agreement
      • Employment Contracts
      • Independent Contractor (1099) Agreements
      • Website Terms and Privacy Policies
    • Copyright & Trademark
    • Hiring Employees/NDA/Non Compete
    • Estate Planning & Wills
    • Commercial Real Estate >
      • Commercial Lease
    • The Right Start Program
  • About
    • Speaking and Events
    • Client Testimonials
    • Privacy Policy/Terms of Use
    • Contact
  • Business Success Tips
  • Flat Fee Packages
    • New Businesses
    • Existing Businesses
    • Dispute Resolution
    • Trademarks & Copyright
    • Estate Planning
  • COVID-19 HELP