All Forum Posts by: Darian Richardson

@Vlad K. Thank you for the information. Just out of curiosity would all these fees and fillings  be under $1000 just an estimate. 

Also would it be possible to transfer a property that is currently in my name to the new LLC's? If so would the person who is registering the new LLC be able to do so?

@Jeremy Hunter Absolutely, I agree to the fullest  but this event was more on the seminar side than the RIEA/meetup side.

@Vlad K. In regards to the $100-$150 per year is the start up cost included in that?

And what would be the responsibilities of that agent in the foreign state if my business is elsewhere?

I'm tying to get a rough estimate of all the cost.

@Account Closed It was one of Armando events. 

Hello BP,

Through a few networking events I am being advised not have my properties in my own name for asset protection purposes and legality reasons . One of the strategies that I ran across was opening an LLC to have assets in the business name instead of my own. One thing I found interesting was the suggestion of opening an LLC in the state of Nevada instead of forming one in the state that I am investing in or majority of my properties are located.

Does anyone have any experience with forming an LLC in a different state elsewhere than their assets, specifically Nevada? If so what was the process of forming one, and what are the pros and cons of doing so. Any tips and insight would be appreciated.

@Ashley KehrThis is awesome. In the near future I am thinking of doing something similar with my duplex. Just to be clear when you refinanced 75% of the appraised value equaling $41,250) You paid back the first loan of $35,900, leaving a remainder of $5,350 in your pocket correct?

What were the terms  of the unsecured loan that you first received?

@Ryan Davis

@Ryan Davis 

Evening Fellow Investors, 

As I am finishing up  @Scott Trench's own Set For Life, I came to a section in the book under "Exploration of Financial Freedom" about The Safe Withdrawal Rate. I thought this section was fascinating, so fascinating I had to explain to another a friend of mine @Ryan Davis, thinking I might  have the answer to the question we both have been wondering. "How much wealth do I need to accumulate to become financially free with little to no risk?"

The Safe withdrawal Rate is a brilliant strategy that is explained in the chapter of THE Exploration of Financial Freedom in the awesome book of Set for Life.

"The Safe Withdrawal rate (SWR), expressed as a percentage, determines what percent of usable net worth ("real assets) that can be withdrawn each year, such that your assets are not depleted. The SWR is defined as the quantity of money, expressed as a percentage of the initial investment , which can be withdrawn per year for a given quantity of, including adjustments for inflation, and lead to portfolio failure."

I couldn't help but think of this idea of tying The Safe Withdrawal Rate with the classic 2% rule. Let's say you have properties that were renting for at least 1 to 2 percent of the purchase price, in this example having a total of $500K in real estate assets specifically rental properties. Approximately, this would calculate to around 5k monthly of gross income (depending on different variables such as property tax, pmi, insurance, etc.) only getting a 1% percent return per purchase price, 10K monthly if all the assets producing at a 2% rate. 

2% rentals are tough to come across especially in today's competitive market, but I myself recently closed on a duplex that has the potential to be producing 1.04% rental income of the purchase price, the crazy thing is I did not realize this until I was already 2 months deep house hacking! The safe withdrawal rate formula is the individual's (annual lifestyle expense)/ (total real asset value). If an individual kept their monthly expenses moderately low at $2K monthly having a total of 24K annually in expenses and 500k of total real asset value, their SWR would be 4.8%.

I would be interested to hear if any other fellow investors have used The Safe  Withdrawal Rate to work backwards to blue print out their success in real estate or journey to financial freedom. What are some Safe Withdrawal rates, that made you take the leap of leaving that wage- paying job?

Perfect, I got the FHA loan already, when I'm ready to pull the trigger for my next deal I will definitely keep this in mind.

Thank you @brian Garlington