All Forum Posts by: Michael Modesto

Hi @Ali Boone ! Thanks for sharing your article. It was SUCH a helpful read. I had heard before about financing difficulties when using an LLC, which your article reminded me of... something definitely to consider.

@Tom S. - Thanks for your feedback as well. Going the Umbrella Policy route without the LLC is one of my options as well, though I do give some weight to not having to use my personal name on contracts, rent checks, etc. Could I possibly file a DBA or fictitious name statement instead, without the LLC?

@Eric Fernwood - Thanks for the detailed breakdown.  I have to digest the information you provided a little more, to determine if that type of structure is necessary for my situation.  It seems very safe, but creating all those LLCs may be overkill for me.

Thanks again everyone for the helpful insights!

Hi all.

I'd like to get your thoughts on forming an LLC, from folks who have done this before.

After review, I've determined that I want to set up an entity to hold my investment properties to add a layer of protection for my other non-REI assets. Adding a layer of privacy as well, is of high value to me.

I live in California but invest only in out of state properties.  I currently have 1, am in the process of scaling that up to 6-10 over the next 12 months.

My questions:

- Is it advisable to form an LLC in California (with its high fees), or somewhere else, say in Nevada?

- The answer to the first question would affect this because of costs/fees... but when should I form the LLC? My instict is to do it now, before buying the 2nd property... but should I wait until I have 3? 5?

Thanks.

M

Hi @Nixon Vayupak 

It looks like we're down the street from each other!  Would love to connect and exchange ideas.

M

Hi @Account Closed 

Thanks for the reply.  Some follow-up questions:

- Is the 1% fee you refer to 1% of purchase price?  1% of annual rents?

- Does this fee cover the property management fee as well?

- Is there a minimum contract commitment for properties acquired through your service?  In other words, if I purchase a home through HomeUnion and decide that I'd like to self-manage (or hire another manager) after a few months, what would occur?

- How many properties are you managing currently?

Thanks.

M

Does anyone know what HomeUnion charges as fees?

THanks.

M

In the past, we have used a template response for declines that looks something like this:

@Account Closed 

Thanks for the tip, @Steve Veen .  Being an accidental landlord in hindsight, has been a good preparatory exercise for me.  Having managed the whole process (marketing, leasing, management, repairs, etc) through 3 tenant cycles myself, I feel that I have a good idea what it takes to be a successful landlord.  I now am focused on selling that property, and turn it into other cash-flow producing ones.

Thanks for the welcome, @Ali Boone !  I plan to be active on BP, so I hope to see you around.

Thanks.

M

Hello BP community!

I live in California and plan to invest out of state.  To get started, I am planning to visit 2-3 cities for a day or two to learn more about the areas and view properties.

My question is, since I'm travelling for business purposes, could I deduct my travel costs as a business expense?

If so, what do I need to set up in order to accomplish this?

Thanks.

M

Hi @Steve Veen .

I'm in the College Park area, very close to Eastvale.

I haven't locked into an area yet, but have been researching Illinois (North of Chicago), Wisconsin & Florida (Tampa area).  I hear some of the southern states may offer good cashflow as well.

Any recommendations?

Thanks.

M

Congratulations!  Awesome story on your first deal!

I am currently in the same position as you were 9 months ago.  Above all the lessons from the books, podcasts and BP that I've learned is to take action.  I'm taking action now.

I hope to be able to post my first deal on this forum soon!

@Pyrrha Rivers