All Forum Posts by: Adam W.

Anthony,

I'm sure you understand that when you say "unlikely" I still see it as a risk that, no matter how unlikely, I need to protect myself against. However you make a good point, and I would look into the cost of setting up an insurance policy like you mentioned so we would not need an LLC for each.

In some cases the properties will be paid for in cash.  Others via loan.  I appreciate your comments!

Anthony,

Thanks for the reply. Out of curiosity why are you planning on owning 3-5 properties in each LLC? Why do you say it's a waste of money to have one per property? In the event of an incident and say, the tenant attempts to sue the LLC.....aren't ALL properties you have in the LLC then at risk (since you have anywhere from 1-5 properties that a judge can use as collateral), as opposed to having the risk limited to a single property?

We are in the process of negotiating loan terms with the bank right now (points vs no points - if you have suggestions on this please let me know), but I was not sure that any legal paperwork could ultimately protect a judge from using the other properties in your LLC should the tenant sue.

Thanks, 

Hello again!

I spoke with a lawyer and was advised to open an LLC for each individual property I own to help protect against any legal or tenant troubles/accidents that may occur. I was also told that we should close on the property before moving it into the LLC.

Thanks!  Any other info please pitch in!

Hi there,

My friend and I finally purchased our first real estate property.  Single family condo unit we will rent out indefinitely.

Since the price of the unit was so low (~$250k), we decided to take out at mortgage at 4.65%. We estimate being able to rent for $2400-$2500 which should net an acceptable cash-on-cash ROI, etc.

My question is involving joint ownership and LLCs. I currently own a personal LLC from which I accept payments for house remodelings I do.

Now I could:

• A) open a separate checking account under that LLC, have my partner sign as a joint-owner, and then we can collect rent and do business under that separate checking account.
• OR....B) we start a new LLC and put the property under that.

What do you suggest is the best route?

• If (B), would we start the LLC now, move all the downpayment money into it, and then proceed with the transaction as through the LLC?
  • --OR do we  proceed with the purchase of property under joint ownership, THEN move it into the LLC after the keys are in our hand?

Furthermore for subsequent property purchases, should we be starting new LLCs for each property we purchase, or keep them all under the first LLC that we started?

Thanks so much and looking forward to learning about this part of the process!!

@Kevin Sobilo makes total sense.  And even if you're buying that property with 300k for cash, no renovation could raise the value enough to produce enough additional equity to take out at refinance.  Thanks.

 Thanks Kevin!

- it seems one of the best guidelines for identifying BRRRR opportunities would be the 70% rule.

Unfortunately everything in my area operates at a higher base money level, as property costs can get expensive around here. So you really have to look for some deals.

If you were looking at things from an ROI perspective, is there a minimum percentage you would aim to achieve? Or would you focus more on the cash flow and cash-on-cash?

Thanks,

Hi @Bogdan Constantin Stefanide, I tried connecting with you.  Please add me to your distribution [email protected]

Thanks,

Last try!  Any insight would be appreciated!

Just moving this up in hopes it gets seen!

I am in this area as well!