Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: JR T.

JR T. has started 10 posts and replied 591 times.

Post: Wyoming Bank Required for LLC?

JR T.Posted
  • Financial services executive
  • Frederick, MD
  • Posts 609
  • Votes 341

Out of curiosity @Ray Ebert what drew you to Wyoming? Is this something being promoted? And if so, what is the promoters promise of additional protection? Who is the "they" that says you need a Wyoming routing number?

Wyoming is a corporate income tax haven. If you're not operating a C Corp from there that carries profit you're probably doing extra work to earn kickback fees on registered agents, filing services etc etc

Post: Wyoming Bank Required for LLC?

JR T.Posted
  • Financial services executive
  • Frederick, MD
  • Posts 609
  • Votes 341

The Wyoming LLC will provide no additional protection beyond what your Virginia LLC features. Next step up from LLCs or Corporations is a vehicle like a Cook Island Trust - for those to work it's more than just the paperwork, you have to have no claims against you and no foreseeable claims when you put in the assets including full tax compliance which often means filing amended returns to clear up any questionable deductions.

If you go in pure with the right law firm those are essentially bullet proof. The attorney who actually wrote the Cook Island's Trust Law practices in Denver.

Post: How should I finance a 10 rental property purchase deal.

JR T.Posted
  • Financial services executive
  • Frederick, MD
  • Posts 609
  • Votes 341

You'll need some serious experience operating the type of asset you're buying before a bank or most commercial lenders will lend you money for the purchase (i.e. before seeing how you perform on the asset first aka "seasoning"). 

In other words, you'll need to get them through seller financing or just buy as many as your existing income can support. 

Post: Fair Security Deposit?

JR T.Posted
  • Financial services executive
  • Frederick, MD
  • Posts 609
  • Votes 341

@Trey Williams You may accept less than one month's rent as a security deposit in Maryland although I don't recommend it. 

Post: Wholesaling, Lawyer, Assignment & Purchase Forms

JR T.Posted
  • Financial services executive
  • Frederick, MD
  • Posts 609
  • Votes 341

I was actually an adverse party to Politzer (going after a wholesaler at the time) and I still recommend him to wholesalers because most law firms have no idea what you guys are doing, but he knew that corner of the world A to Z.

Post: How to anonymize without an LLC?

JR T.Posted
  • Financial services executive
  • Frederick, MD
  • Posts 609
  • Votes 341

PO Boxes now allow you to use the physical address of the post office with the box number as a suite number. 

You can start an LLC or file a DBA and start using a company name without changing who owns the properties. That company's business is simply managing properties you own personally. DBA (doing business as) is the filing you make and advertise to do business as a sole proprietor. Once you do that and get a tax ID you can get bank accounts in just the company name (if you ask for it the bank will default to your name dba company name) for security deposit refunds, business expenses etc.

To anonymize the ownership of the properties consider living trusts. The title will go into the trust name and when you die the trust will automatically convey title to your beneficiaries. This structure doesn't afford liability protection so you need to keep up your insurance, but it's great for if someone looks up the owner of 123 First Street only to find it's owned by First Street Trust with your PO Box for mailing. 

Post: Wholesaling, Lawyer, Assignment & Purchase Forms

JR T.Posted
  • Financial services executive
  • Frederick, MD
  • Posts 609
  • Votes 341

Arnold Politzer in Towson works with wholesalers. 

Post: What are you new investors using for expense tracking??

JR T.Posted
  • Financial services executive
  • Frederick, MD
  • Posts 609
  • Votes 341

Buildium. Don't cheap out it's not that expensive and it will give you a lot of big company features on day one. Your phone also won't ring for maintenance requests because tenants submit them online. You will be happy to have detailed income and expense reports for the properties if you ever want to use that data to get a loan.

Post: Fair Security Deposit?

JR T.Posted
  • Financial services executive
  • Frederick, MD
  • Posts 609
  • Votes 341

@Rhiannon Then You can click on Tools and Tenant Screening to be taken to the TransUnion site. 

I think you should use the property manager. It sounds like they have the experience to know that marketing the best $700 rental in town will get you the best $700 renter in town or someone who can afford more, but lives within their means. This is how you get low headache tenants. 

I disagree with your assertion that you "know your neighbor." Tenants who claim "mold" or "lack of repairs" and then they're living in their Grandmother's winter house are likely problem complainers whose only real grievance is that they do not have their rent on time or, eventually, at all. I note that Grandma does not like the arrangement - either she really intends to sell or she just wants her Grandaughter to become your problem instead of hers, but we do know for sure this lady's own Grandmother doesn't want her as a tenant. My vote is with Grandma.

Post: Maryland new foreclosure ruling about collection agency license

JR T.Posted
  • Financial services executive
  • Frederick, MD
  • Posts 609
  • Votes 341

You would not be required to hold a collection agency license if the notes were performing when you bought them. There is also a lot of case law out there that says if your primary purchasing strategy is performing loans and you happen to get a nonperforming one bundled into a sale you do not need a collection agency license either.