All Forum Posts by: Javier Molina

Signing a mortgage doesn't put my name out there publicly right? It's my signature but the name of the LLC that is public I thought.

Regarding cost my current plan is CA LLC which I need regardless. WY LLC which I think has no annual costs. And a revocable trust which again no annual cost just initial set up. Am I missing something? Because I agree I want to keep annual costs down.

1. Ok to summarize it seems that there is Zero way to dodge CA annual fee. Best course of action here is to make a WY Umbrella LLC that owns the CA and any future LLCs.

2. Put all of this into a revocable trust.

3. No need for a land trust since the WY will provide the anonymity needed.

4. Talk to lender to find out how to transfer assets without triggering due on sale clause.

Did I get all that right?

Thanks for your reply!

What is charging order protection?

I agree that the role of the Land trust in my structure needs clarification and was kind of what I was trying to ask in question 3. If anyone can explain what it's really doing for me and how is it doing it.

Would you recommend adding an "Umbrella" LLC in Wyoming to own all the others to preserve the anonymity and stronger asset protection laws?

If I understand you correctly you are stating that transferring the properties to the revocable Trust, then transferring them to the LLC would not trigger the due-on-sale clause?

I appreciate your help. Really trying to make sense of all of this.

Thanks for your reply! To answer your questions.

Yes they were based in CA.

No there's no reason to have a complicated structure.

So I am military, originally out of CA so it's my "home state"/residency but very easy for me to change as I am stationed out of CA and have been for a long time.

I own several properties in CA and one in WA. I had a conversation with a Probate/Estate lawyer and he suggested the following but what he said doesn't quite add up to what I have read so I want to see if I am just not understanding or if I am getting bad gouge.

Advice was to create WY LLC that owns all properties, that is then "owned" by a land trust for additional anonymity, that the beneficiary is a regular Trust that owns everything else in my name. So when I die, the LLC and all my properties then become part of the general Trust. Further more I only need to file taxes in WY since I am not in CA so not doing any business there so don't have to file CA taxes.

My questions are as follows:

1. Can I actually dodge CA $800 per LLC filing fee since they like to state that even if your property is out of state because you are making decisions from CA you are doing business in CA so if that is their definition of doing business in CA I am safe? (I have read that CA likes to have their cake and eat it too by claiming any part of the chain of money/business no matter how small).

2. If I do have to file in CA does that mean when I file my WY LLC as a foreign LLC do I loose all my anonymity that WY provides? (Is there any real benefit to creating a WY LLC then? Or do I retain some advantages over just going with a CA LLC).

2a. If I do loose all perks of WY LLC above, I read something about creating a CA LLC that is then owned by a WY LLC (that has zero yearly fees) and that's how I can retain all the WY perks while filing CA taxes.

3. Im struggling to understand the Land Trust part. He said since the land trust can't own anything other than real estate, it doesn't own the LLC, the LLC is just the manger of the estate and holding it for the Trust. That seem like the trust is not between me and the LLC so not sure how that provides an additional layer of protection. When I asked him about this he said it's a bit complex. We were already well past the scheduled meet time so I didn't want to push. Can someone explain how a Land Trust works with an LLC for all of this?

4. If we throw all of this out of the window, what would you recommend I set up for both asset protection, minimizing tax liability (including CA crazy $800 per LLC fee), and probate planing. (I just went through probate when my mom passed and it sucks and would like to prevent my successors from having to deal with the same if possible).

Bonus question, one of my properties is still under mortgage, he mentioned something about transferring it to an LLC can trigger a due-on-sale clause but not when transferred to a Trust. Any advice on that aspect?

Thank you so much for your time!

Looking for any CPA recommendations with multi-state, military, and a dash of international experience in REI. I am not looking for a coworker, or a guy you know in some mega-mind group you are a part of. Would like actual customer recommendations, the CPA you are actively using and happy with. A little about how they have helped you would also help. If you are advocating for yourself as a CPA then I'd like some references on this forum if possible. Thanks!

 Who did you end up using?

I own a property in Ridgecrest (china lake) and am current military. Renting to military is just like renting to anyone else with the exception that you know they will be getting a paycheck on 1st and 15th virtually without fail. They are much more likely to pay rent on time since it can get them in trouble at work. Also the mentality trained in to us to maintain our surroundings appropriately. Now I'm not saying there aren't some slobs or bad apples but the percentage is much lower. Bad part? Well you have a good chance we will be moving within 4ish years sometimes a bit less. So no getting that renter that moves in for the long haul.

Just remember to include a military clause in your lease with them (let's them break lease if they deploy or the like) which we are legally entitled to but beyond that it's all the same.

Let me know if you have any questions!

Completely understandable. I think it's just called learning your lesson and not wanting to repeat your mistakes. Take your time and do it right. Keep me posted. I'd love to hear from you. Also if there is anything you need shoot me a message. I will be on the coast myself soon enough.

Thank you all for your replies!!!

Apparently I didn't update this thread even thou I thought I did... I ended up pulling the trigger on a property a few months ago. Probably not the best deal out there but I am happy with it. We shall see if I was bone headed or made a good move in the months to come. I am currently living in it but will rent it out as soon as I move out in Feb.

My current issue I have is getting it ready. First the paint on the front of the house is blue... as it recycling bin blue, as in smurf blue... Neighbors hate it, fiance hates it. I don't care lol. If anything it is known as the blue house and I think it makes it stand out. Imprint in peoples memory. So that when potential renters are going thrugh 10 different houses they went to go see to move in to, mine stands out. I just hope it doesn't stand out negatively because of it. What do you all think? I am willing to paint it but the question then lies as to what color? I want something that will look good but add to it. Make it stand out positively. Make you go "wow nice house, the inside has to be nice" So potential renters walk in to the house already liking it. I fail at colors... So advice is appreciated.

Second thing is that the woman says I will never rent the house with the stove and dishwasher in it, as they are 30 years old. All I can think of is yes they are ugly but they WORK!!! They have for 30 years (of which almost none of the newer appliances can last as long) and will probably last 30 more... Also more fancy things I put in it the more fancy (expensive) things I have to fix when they break... Again opinions and experiences are appreciated.