All Forum Posts by: Andrew K.

It's a just a more personable name IMO. Tenants receiving letter from "XYZ Properties LLC" rather than 123 Main Street LLC. But if tenants letterhead must be the entity then so be it. Property management will be place though from an entity I have no ownership of. Until then I need to communicate with tenants.

Apartment building is owned by an entity LLC>. When sending notice letters to tenants I'd rather use another business name on the letterhead. isn't owned by the other entity. is owned by two people. Other LLC is just single member (me).

Is there any reason I shouldn't use the other LLC on letterhead. Does it construe mixing of assets or anything that might foul up the operations of ?

@Rafal K. I am a member.  I was unsure as well about paying for membership.  You can attend your first General Meeting for free to see if it's for you.  Arrive at 6PM to spend time at the New Member breakout to learn more about the benefits.  There are other smaller breakouts before the General Meeting too.  

I'll be honest and say sometimes the meeting speaker is hit or miss as far as educational content.  DIG has to pay their bills too and sometimes a National RE speaker is brought in that is more sales-ey than I would prefer.  Pushing for you to pay for his classes, books, etc.  Other times the speaker is more about educating than selling.  Although many of the people that speak sell books but aren't sales heavy about.

Once you are a paying member you can attend the DIG subgroups that are held various times of the month and are more focused on specific topics. e.g. Investing in vacation rentals or specific geographical areas, etc.

@Rafal K. Have you found DIG yet?  

https://www.digonline.org/

I'm working on getting a loan for a larger MF deal. I'm creating a a single purpose entity (LLC) that will own the real estate. Seeing as the entity has no history or credit and the loan is less than a $1MM. I'm personally guaranteeing the loan. Is there a way I can build a credit profile for an entity that can extend past this deal? I expect to create more single purpose entities for commercial RE in the future as well as holding multiple SFHs and small <5 unit MFs inside other entities.

In other words - Can I create another entity (HoldCo LLC) over the new single purpose LLC (123 Main Street LLC) and build a credit profile for HoldCo that I use when getting financing in the future. HoldCo will survive the subordinate LLCs and will probably hold some SFHs/small MFHs directly. I know I'd still personally guarantee the loans perhaps at first. The goal being that over time HoldCo has a credit profile that allows me to get financing without personal guarantees.

If this a valid strategy what would I have to tell lenders at first so that HoldCo gets credit for loans that are in place for the sub LLCs with my guarantee?

Lenders are out there that will lend to an LLC. Have you only been talking to big banks? Wells Fargo, BoA, etc?

If you're returns truly are truly that good, great! 

As Jim mentioned.  Don't leave out taxes and the usual CapEX/OpEx expenses.   Most of the deals I analyzed in Norristown got killed just from the taxes.

You can NEVER mix personal assets with your (wife included) IRA assets. Look up prohibited transactions and disqualified persons.

My property manager just sends me the net after her fee and expenses (repairs that occurred during the month).   She's going to 1099 me for my income.  Should I be 1099ing her back for her management fee?

Wouldn't this be a case of tortious interference?