All Forum Posts by: Brandon Lashmet

Quote from @Melanie P.:

Quote from @Brandon Lashmet:

Quote from @Melanie P.:

Best be careful where you pitch this deck. 

 Curious to understand better what you mean?

 It sounds like you're gearing up to market securities without realizing you are doing so. When you advertise an opportunity for people to invest money and expect to earn profit based primarily on the efforts of someone else that is a security. 

Ah, that’s an interesting point. I’m in the research and discovery phase so wouldn’t be doing an actual pitch for awhile, but what type of license would be needed to alleviate the concern that you raise? Is it a special type of security license, for real estate in particular?

Quote from @Chris Seveney:

@Brandon Lashmet

You could have someone on upwork develop the marketing content for you pretty easily

The data though will be drastically different for every asset depending on jurisdiction, size, etc - thus data should come from you for your specific project

Outsourcing the marketing content is a nice tip.

My main goal is to collaborate with interested folks on what the full timeline looks like and how to generate the data for a sample deal.

Then anyone could use it for their own deal, just replacing the relevant data 😀

Quote from @Melanie P.:

Best be careful where you pitch this deck. 

 Curious to understand better what you mean?

Hi All,

I'm looking to develop:

1. A custom timeline that captures the end to end process for procuring an apartment building with investors.

2. A pitch deck that could be used to present to investors for this purpose.

Is anyone interested in working on it with me or have any good resources that could be used for ideas?

Any help is appreciated :)

Quote from @Chris Seveney:

@Brandon Lashmet

Corporations are s corp and c corp

LLC is not a corporation - it's a limited liability COMPANY

Ah, that makes sense then. But then it would seem that a condo owned by a single member LLC would be exempt, correct? As long as notice was given of the exempt status?

Seems it would only be non-exempt if the member of the LLC was a corporation.

AB1482 applies to all rentals except:

• Homes that are NOT owned by a corporation, real estate investment trust (REIT), or an LLC where one member is a corporation, AND tenants have received notice that the unit is exempt from AB 1482 in the form required by the bill.

Thank you for the help 😀

Quote from @Chris Seveney:

@Brandon Lashmet

I would interpret this as you are not exempt. You are the member of the LLC not an s corp or a c corp which owns the LLC - which is more traditional in syndications and other setups

So that’s the confusing thing…

They list as not exempt:

1) corporations

2) LLCs where one member is a corporation

I feel like item 1 would disqualify ALL LLCs (since they are corporations). But if item 1 means all LLCs, what’s the point of item 2?

The way that item 2 specifies a specific LLC scenario makes me think that item 1 is referring to non-LLC corporations.

Just wanted to bump this to see if any replies. Any help is appreciated :)

Quote from @Luis Alvarez:

Hi Brandon, coming from a former CA born-and-bred resident (and where I began my legal career in) I would respectfully provide you with a different perspective...

Sorry for the late response here, just noticed this post.

Thank you so much for the detailed reply, much appreciated. I agree with all of it but would like clarity on one point.

Would it be considered comingling if all rental income initially flowed through separate bank accounts (each owned by their respective LLCs) for tracking purposes, then did a separate transfer into a consolidated account to take advantage of high interest?

This way all of the metrics can be cleanly seen in the original accounts as well as how much is transferred out to the consolidated account.

Thanks for the help :)

AB1482 states that "single-family homes/condos (residential real property that is alienable separate from the title to any other dwelling unit) are exempt from AB 1482 if (1) the owner is not a real estate investment trust, a corporation, or a limited liability company in which at least one member is a corporation and (2) the owner provides the tenant with a written notice of the exemption"

The part that is confusing is "...a corporation, or a limited liability company in which at least one member is a corporation."

Would this just include all LLCs (since all LLCs are corporations), or do they specify an LLC with specific criteria since by corporation they mean non-LLC corporations?

I am the member of a single member LLC, where the LLC is on the title of a rental property, and trying to determine if it is exempt from AB1482, since the LLC does not have a corporation as a member, or if the LLC is binded by AB1482 just in virtue of being an LLC.

Any help appreciated :)

https://caanet.org/kb/exemption-from-ab-1482-addendum/

Quote from @Larry Turowski:

@Nathan Gesner gave you the perfect answer. If you got sued for $1M and only had $500k it is not as if the insurance company is just going to pay out and you’re on the hook for the other $500k. They’ll fight tooth and nail to pay as little as possible, if anything at all. This is the one time we like how cheap insurance companies are. That $1M lawsuit, if there is any legitimacy to it, will probably get settled for $100k. 

 I appreciate the answer and that is how I am leaning in general (e.g., stop opening new LLCs and use umbrella policies), but I'm not sold yet given the nuances.

1. The properties are in different states.

2. The tax strategies might be complicated since there is the option for the SCORP to "manage" the LLCs.

3. The properties are different rental types (e.g., short vs. long).

4. LLCs can be opened in different states (CA vs. New York)

5. One option would be to leave the existing LLCs as they are and implement a new strategy going forward.

6. Separate bank accounts help visibility into each properties specific performance.

What do you think?