All Forum Posts by: Colby R.

I'm an attorney and I am just warning you it's potentially more severe than a speeding ticket. If you ever have a liability issue where the protections of the LLC would save you, I would not count on it. Otherwise any tax advantages are arguably tax fraud. I'm just warning the rest of the echo chamber!

Hope you never have to deal with it. Best luck to you!

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Originally posted by @Heather Miner:

@Willie R. Thanks for the head's up . . . I will have to check into that. On all (!) the forms we've filed in the last 8 years, we've never had anyone question the single member LLC (and we're very clear that this is a husband/wife team). I will be filing taxes for us this year (a first for me!), so I may peruse the IRS's website for clarification.

@Colby R. You're right, we may be violating the terms as I think most mortgages don't allow this. I have not heard of a called note unless there's a lot more to the story (e.g., payments aren't made on time). And, all mortgage lenders are aware of this tactic and the Quitclaim Deeds are public information. So, clearly the violation of Quitclaiming to an LLC ins't their top priority. That being said, we're really under-leveraged and can handle paying the full note if needed. I'm not concerned. I also go over the speed limit sometimes. :)

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Originally posted by @Colby R.:

Very curious why Florida is so bad for flips; isn't the northern central Florida area growing?

What about for rentals?

What's the difference between above the line and below the line?

1 Vote

Originally posted by @Heather Miner:

We have a single member LLC (just husband and wife are members). We purchase all properties in our name and then file Quitclaim deeds to transfer to the LLC. We own four rentals. I don't know how scalable our model is for you, but we plan to continue this approach.

This can violate the terms of a mortgage. Be very careful.

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I am a Florida attorney and I would advise a Florida client that an LLC is very valuable. It shields you and your family from the potential back breaking liability that can arise from folks getting injured on your property. Prevents you from ever having to file personal bankruptcy in such a case.

I am not a CPA, but it also opens up a litany of tax advantages because you can now drive certain of your activities through the LLC as expenses-- mileage and gas, networking lunch/dinner/happy hour, repair costs, the list goes on. Google the tax advantages of a small business owner. You would be amazed how much of your life would become an expense / write off.

Your mileage may vary and I recommend you consult a CPA and Lawyer in your state.

Please excuse iOS typos.

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Very curious why Florida is so bad for flips; isn't the northern central Florida area growing?

What about for rentals?

What's the difference between above the line and below the line?

0 Votes

All Forum Posts by: Colby R.

Colby R. has started 0 posts and replied 6 times.

Post: Obtaining financing as an Corp/LLC

Post: Obtaining financing as an Corp/LLC

Post: Best areas in Florida?

Post: Obtaining financing as an Corp/LLC

Post: Is an LLC worth the money?

Post: Best areas in Florida?