All Forum Posts by: Bruce Scannell

@Amanda Keller, auctions depend significantly on your local market. I feel like it's all relative though, if there are decent deals in your market on the MLS than there are slightly better deals at auction, but thats because they aren't as easy to obtain. Auction properties typically require quite a bit more research and don't come with as many exit strategies as those found on the MLS.

I would recommend attending your local auction with no intention on purchasing, observe the actions of the bidders and maybe befriend a regular, if possible.

Good luck!

I like this thread and have similar questions. I have 2 properties and want to cash out refinance this summer. Is anybody having problems with that? What kind of terms is everyone getting For what kind of properties?

good point @Rob Beland, at this point I should be safe for a while.

@Bill Gulley that is good to hear, I think the horror stories make for better ratings so that's what you typically hear. 

@Michael R.I do have insurance, the two properties are insured and I have also added a personal umbrella policy. I know what you're saying about my CPA also having a vested interest in me filing more returns, but I trust him and have been using him for years even with my prior business. He also owns rental properties himself, so that's why I consulted him about things outside the tax realm. Do you hold rentals? If so, how have you structured your business thus far? Have you had any problems with tenants involving litigation?

@Michael R. I meant to tag you above. You're right, everybodys goals and objectives are different. I want to acquire a minimum of 6 more properties this year and use RE as my primary investment engine as I enjoy the control compared to other investment options. I also like the flexibility in schedule that I don't currently have working for someone else.

@Jerry W. thanks for the comment. I don't want to have LLCs for every property, due to the tax burden and headache, but I do want one management LLC to run the expenses through and then holding companies for every 5 properties or so. This is obviously thinking down the road since I only have 2 SFRs but I'm trying to set a foundation in hopes it will grow.

Long story short, I've been working as an "E" for a long time and taxed heavily so I'm trying to improve that by planning the path to become an "I". At the same time I've also been burned owning a franchise and not doing my due diligence up front, while assuming I could roll with the punches. I just want to make sure I understand the potential pitfalls before getting too deep.

@Michael R.

I appreciate the honesty Michael R. and I agree with all you are saying. I will take your advice and rethink my position. You said that you have your holdings in your name, if I can ask, how many properties do you have? Have you had any problems with structuring it this way in the past? Thanks

Thanks @Michael R.. I agree with the KISS principle, I'm just trying to dream big and set things up accordingly. You're right, I need to speak to an attorney and have one I can call, it's just that I think it can work either way I just want to see what others do, for what reasons and how it's working. Specifically, who would you choose as the member manager, an LLC or yourself and why?

BP world,

I'm trying to put together the operating agreement for a property holdings LLC and need input on the pros and cons of making myself managing member. I have a management LLC with my wife and I, and I'm looking to create a property holdings LLC with myself and the management LLC.

For others that have done this, do you make yourself or the management LLC the managing member? I want to have the additional asset protection, so I'm thinking of making the LLC as managing member, but my CPA says I should make myself the managing member. If thats the case, whats the purpose of having the management LLC in the holding LLC?

Thanks in advance,

Bruce