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Episode Description
Do you need a real estate LLC, and should you form one before or after buying a rental property? This is a very common rookie question, and liability protection is one of the most misunderstood topics in real estate investing. But not to worry—today we’re setting the record straight and showing you how to build bulletproof protection for you and your assets!
Welcome back to another Rookie Reply! Does a rental property have to make positive cash flow for it to be considered a “good” deal? If you’re using the house hacking strategy, maybe not! In today’s episode, we’ll share exactly why this is often the exception to the rule.
Finally, what’s the best way to fund rental renovations? In most cases, lenders will help you finance the purchase of a rental property, but you’ll have to scrounge up the money for your renovations—except if you use an FHA 203(k) loan. How do these loans work, and what are the pros and cons? Stick around to find out!
Looking to invest? Need answers? Ask your question here!
In This Episode We Cover
Whether a rental property needs to cash flow if you’re house hacking
LLCs, umbrella policies, and other types of liability protection explained
Whether you need to form an LLC before buying a rental property
What to know before transferring ownership from your personal name to an LLC
How to fund your purchase and renovations with a 203(k) loan
And So Much More!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-733.
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