All Forum Posts by: Alice Chen

do you have a good collection agency in mind? Problem is I don't have the tenants SSN or birthday.

I'm a California landlord that has already won a court-default judgement for possession but has not filed the money judgement .

Is it hard to send the tenant to collections without a money judgement? Trying to see if I should pay more lawyers fee to get the money judgement.  I understand the odds of collecting are very low, but once in a while, it seems like a tenant will pay if they need a house loan.

If you also know a good collection agent, pls feel free to PM me.

thanks - let me know if you have any more info.  Yes, I'm doing as much research as I can.

If your trust is a member of the LLC, doesn't it mean that your trust is also liable in case of a lawsuit? Difference between:

1. Me, Spouse as LLC members

2. Me, spouse, our family trust as LLC members. This legal zoom article states if the family trust is part of the LLC, advantage doesn't have to go through probate which is good. https://info.legalzoom.com/art...

Yes agreed about talking to a lawyer as they will draw up the paperwork. But what I am trying to do is fairly common? landlords put their properties in LLC and landlords have estate plans. So trying to figure out how others have "combined" these 2.

1. So I will talk to my estate lawyer about maybe a quitclaim deed to transfer from trust to LLC

2. Discuss with a biz planning attorney in case of death, how succession works within the LLC, as to what happens to my property. So our living trust will be the successor upon both of our deaths.

thanks - I already have umbrella insurance. I was debating doing the LLC since it does cost 800$ and now I have to move it out of the family trust to the LLC (fees for estate lawyers). I spoke to an attorney who had listed very specific things so the corporate veil can't be pierced such as new bank account etc. But I am nervous what a "once in a lifetime" lawsuit and being in CA, which is very tenant friendly.

For the LLC, I thought about trust being listed as a beneficiary. I believe the step us basis should be preserved?

We have a California rental with no mortgage that is in our trust, so its easier to pass on to our kids. Now we want to put that rental house (which is owned by our Family trust) into an LLC to get some liability protection. I will consult a lawyer but also wanted to understand the process.

Do these steps sound right?

1.  Create LLC

2. New grant deed convey property from family trust to LLC

3. LLC documents state that in case of death of our death, the trust will inherit the LLC? Or do we move the LLC into the trust, but wouldn't the trust now own the LLC?

Any other considerations? I do understand I pay to $800 for the CA LLC fee and file an annual return but I am worried about liability.

thanks!

CA legislature passed AB 150 which is a SALT tax workaround.  Is it possible for landlords to use this?  Previously only a $10,000 deduction was allowed for state income taxes on federal returns.   thanks!

https://www.sflaw.com/blog-pos...

1. So say I go into contract to buy a NEW property and the owners agree a 90 days or more closing.  Then I list my OLD property, which I assume will sell very fast.   Then I don't need to do a reverse exchange right?

So OLD property sells, I identify the NEW property (which I've locked under contract) within 45 days in writing, then I close on the NEW property by paying cash.  

2. How important is it to find a real estate agent that knows 1031 exchanges are will the qualifying intermediary play a large part? I will have to use 2 different real estate agents as the NEW and OLD properties are in 2 different counties.

Has anyone done a reverse 1031 exchange, esp in CA? Do you have any advice for someone who intends to complete this type of exchange and a company that would do this?  
It's hard to buy homes in the bay area, so that's why I would like to do a reverse exchange.

I have a rental in the san francisco bay area that I would like to relinquish - the odds are really high that this rental will sell.  

1.  I would buy the new house first (using cash), then use a qualified intermediary to hold the proceeds right.

2. I am fine with whatever price my old, relinquish property will sell for.  I think the price will be competitive though.

thanks.