All Forum Posts by: Raj I.

@Marvin - Thank you. I am planning of getting an Umbrella insurance for the time being.

Reason for looking outside of Atl is because we'd like to retire in Hawaii and I would like my tenants to help pay it off. It would also 'hopefully' count as a business trip when I go to check on the property with some preplanning.

@Steve - Thanks for your suggestion. Entity will just have my wife and I. 

@Greg - Main reason is to keep my business expenses separate and for protection against valid and frivolous lawsuits. I'm researching Series LLC as well.

@Jonathan - I got the same price from a local CPA but he told me that I really don't need it. He said that unless I do something complicated like set up a Holding Company in NV/WY or a Trust in VA and then a LLC in GA it really wouldn't offer inside and outside protection. Also getting a loan will be painful.

Bottom line is that I just need to go close on some homes and then worry about this at a future date :) Thank you all!

Thank you so much Jonathan. I will be checking out LZ..5500 seemed way too high. I'll also check on recommendations in BP for credible lawyers in my city. Have a great evening!

Holy cow Ali, you are an Aeronautical Engineer! I am just going through your posts and the comments are so informative!! 

Honestly this LLC vs Umbrella Insurance is such a confusing topic. I just wanted to keep my w2 income source separate from my business and track expenses cleanly.

PS - This could be a whole new topic, but have you:

1. Loaned $ to your LLC

2. Make a 'cash' offer

3. LLC loans you the $ and puts a lien on the property

4. Re-fi it after seasoning

5. Repeat 

Is this worth doing?

Thanks for reading this post.

I understand that setting up an LLC is not required in RE, and if anything it can be a pain to file returns depending on how you set up your LLC's.

However, I am looking at a couple of properties in 'war zone' areas and out of state rentals and since I have a decent net worth, asset protection is something I have to do.

On Youtube, I found 2 really good Attorneys who have detailed the how and why. I called one of their offices and the quote was for $5500. Here's what you get for it:

1. Holding Company (NV)

2. LLC in home state

3. Potential trust in VA

4. On-call support.

I know BP'ers are prudent and minimalists and I know that you are chomping at the bits saying WHAT!!! Before you proceed to roast me, can you please educate me on how did you get your trust/llc started? If you are in Atlanta, I would love to buy you dinner or meet for scotch/beers and see if we could partner up.

Thank you Ali and Greg. 

@Greg - Couple of properties I am interested in have Sec8 tenants and one is in Hawaii. 

I have exposure to the stock market and have other assets directly in my name. God forbid, if someone gets hurt in one of my properties, I do not want personal assets exposed, hence Holding Co/LLC is something I need to use for asset protection.

These days, any time I see a rehab home and check the price/tax history on zillow, I find that someone bought the property for 10k, rehab'ed it and is flipping it. How in the world are they getting these prices?! 

Sheriff sale?

Bank REO?

Short Sale?

Is one preferred over another?

Do you have a book or any other source which goes from A-Z? Would love to pay someone who has put in time to teach this.

Thank you for your time!

Hello, We are new to real estate and plan to buy a couple of properties for long term investment and to reduce my w2 tax burden. Should I self incorporate? Do you recommend land trusts? (Seems pricey and complicated) Any other suggestions? Thanks!!

We are brand new to this and it's inspiring to see what you have done. Awesome!!

Hello to all the wonderful members of this community.

My wife and I are brand new to RE and embarking on our first investment home.

Here are the basics. I would truly appreciate your counsel.

• $100k Purchase Price (sorry Subject says 120. Typo) - 2005 Built SFH with no HOA
• Bad part of town, but a 3 year stable tenant paying 1700 through Section 8
• Requires a new HVAC, but the place is not completely trashed. 
• Husband, Wife and their 6 kids at home 

Renter said they have signed a lease until Aug, and intend to re-up. $1700 Monthly rent is awesome, but is this too good to be true? 

We made a visit to the house and they said that he owner is based in Asia and there is no AC/Heat in the house and want a better landlord. They seemed to smoke in the house which is not great, but it is what it is.

How would you approach it? Thank you in advance.