All Forum Posts by: Brady Hanna

This is very helpful everyone! Thanks for the replies and input!

Taylor Green -I am very interested to hear the responses you get for whether or not tenants can pay you in your LLC name even though you signed personally for the property.

I am looking at doing this exact same thing as I am going to personally sign for the property, but have an LLC as well. I don't really care about the LLC liability protection, just that it is more professional having your tenants pay "ABC LLC" instead of your personal name. Let me know what you find out!

Thanks!

Thanks for sharing! Looks like a great site!

Also the things to find out would be what utilities if any are included? Hopefully the current owners can provide you with an income & expense statement.

For me personally to consider it, I would want the price to be lower, mainly because there are so few lots currently rented. if it was an appealing area, they wouldnt have such low vacancy. If you have 100% of the lots rented, you are looking at an income of $1125/month for a cap rate of 18.75%, which is excellent, but currently it is less than half that.

Thanks for the resources! This post helps out a ton as I am trying to figure out possible rents as well!

Roy N. -That is what I was planning on doing, but just wondered exactly how others who have done this do it exactly.

So the LLC would collect the rent and then pay the mortgage? Or would I write a check to myself from the LLC business checking account and pay the mortgage personally?

Just not sure how all the specifics are handled.

@chrismartin,

Is having a closing attorney part of closing or do you need to hire am attorney in addition to closing? How much extra does doing something like this cost?

We are in the process of buying our first rental prop personally and trying to figure all of this out.

Thanks!

How are you currently doing it?

My wife and I formed an LLC with the initial idea of buying rental properties through our LLC for the extra protection on top of umbrella insurance. After talking to bankers all over Kansas City, there aren't any banks in town that will give me favorable financing because it is a commercial loan. So I have decided to go back down the route of personally owning the property and am tossing around the idea of having my LLC "manage" the property like others have mentioned. The "Due on sale" clause just scares me a little too much to gamble on transferring my title to the LLC after I purchase the proper personally.

So others have mentioned having their LLC's collect the rent and essentially manage their properties. For those of you who are doing it, how exactly do you do it?

My only reasoning behind it is that I really like the professional feel of having tenants pay Midland Park Properties instead of Brady Hanna. Seems like a more legit operation. I know I will have to have a separate business bank account, but for those of you who have done it, do you accrue any additional taxes or anything like that? I imagine you would personally be paying yourself a management fee of say 8%, which the LLC would consider revenue, which would be taxed right? Or am I taking it too far?

Any advice would be appreciated!

Has anyone bought this "LLC Master Machine" course from Al Aiello? The cost is $695. I listened to a podcast on this and it sounds interesting, but I hate to blow $700 if it isn't worth it. My wife and I are at the starting phase of forming our LLC right now. If any of this would truly be a benefit for establishing our company, I am not against dropping the money for it, but if it gives you the same protection that just a CPA setting up your LLC will provide, I can save some $.

Here are their claims:

• Give you ironclad protection of your personal valuables

• Give you the ability to save substantial amounts of taxes

every year

• Give you the power to defend yourself against IRS attacks

• Prevent legal disputes and save you $1,000’s in legal fees

• Enable you to successfully operate your real estate business

The Real Estate Operating Agreement Extraordinaire

The operating agreement (OA) is the nuclear LLC document. It is the "heart & soul" of the LLC. The OA extraordinaire is the most powerful OA ever. Adaptable in all 50 states, it is specifically designed for your real estate so that your LLC will give you optimum legal protection and maximum tax savings

Operating Agreement Extraordinaire (121 page Blank format w/ table of contents to review) which blows everyone's mind! (Blank format with instructions for completion).

PREVENT PIECING OF THE LLC VEIL WITH MINUTES OF MEETINGS AND RESOLUTIONS – One of the most vital of entity formalities to prevent piercing of the veil, all specially targeted for real estate operations; filled-in and ready to go. You can use these without physical in-person meetings.

FREE IRS Set-Up: Step-by-step instructions to easily, quickly and correctly complete IRS Form SS-4 for federal ID and Form 8832 for the proper LLC tax classification to audit-proof your tax returns and more. Includes blank and sample filled-in formats