Where do I go from here?

[Jeff S.]

Thank you in advance for any advice you have. My situation: Myself and a partner own 6 SFH within our llc. We purchased them all with cash starting in March of 2012. They range in value from 60k-130k. They are all currently tenant occupied and bring monthly rents of $900-1200. We started out wanting to just get a taste for what the business was like and see if we liked it. We do, and thus far we've been pretty successful at it. We want to take this to a much bigger place, and make our day jobs optional as quickly (not hasty though) as possible. We also are tired of spending our own money. So, my first question is, where would everyone go from here? Again, the 6 houses are paid for, no lines of credit etc attached. Second, what insurances should we have in place between the two of us, llc etc as far as liability goes? Thank you!

[Tom Goans]

It is very wise to seek advice from a licensed professional tax and financial planner to analyze and review each partner's present status, strategy, and future plans - including building an estate. It is one thing to make money; it is a completely different strategy to building wealth and a solid estate.

Business partnership and financial considerations may include:

• Business Power Of Attorney

• Medical Power Of Attorney

• Living Will

• Will or Trust

Legal advice from an attorney and a financial planner you hire will be the cheapest and wisest investment you will ever make.

Moreover, every investment, partnership, and individual is unique. There is no one correct answer. There are numerous options that must be considered and many costly mistakes that need to be avoided.

• Dissolution of the business is one many forget.

Other considerations include:

• Death
• Incapacitation
• Spouses
• Children

And, yes, you will disagree on the smallest issues. The courts are full of such lawsuits.

Seeking professional advice from licensed professionals who are knowledgeable about the areas in question can be an extremely wise and very economical decision considering the alternatives.

I was involved in a partnership where it was later discovered the major advantages of having a life insurance policy on each partner with the benefactors being the surviving partners.

May your future be full of great success.