All Forum Posts by: Dave Row

Like many folks, I've acquired various policies over the years, ranging from multiple life, LTD, home, auto, umbrella, and others.  Now that I need to cover my new real estate venture, what's the best way to get a comprehensive insurance review from a single agent that can cover all of this in a comprehensive plan? Would like to re-assess needs and coordinate, augment, and/or eliminate these various policies.

Curious who has done this type of exercise and how they selected an agent that could do it all.  Thoughts?  - Dave

Just to close the loop here, I received reliable counsel that you should, indeed, use in-State Land Trusts. Still good to roll these up to a WY LLC for anonymity, when doing cash deals.

I should have mentioned that I am *not* using any portion of the HELOC for investment properties (those will be financed using other available methods). So, I don't want a large available HELOC to limit what I can borrow through those other methods.

Hi, I've read elsewhere (still looking for link) where FICO treats HELOC amounts > $35K more favorably than lesser amounts. IIRC, this has to do with calculating how the HELOC amount factors into your debt service capacity.

While FICO's exact algorithms are secret, has anyone come across this? I ask because I'm on the verge of doing a HELOC where I only need $25K, but will do $35K if that helps me with future unrelated investment loans. Any thoughts out there? - Dave

Just consistency in managing trusts that hold property in multiple States. I know that a foreign LLC operating in a State must register in that State, but had not read that requirement for trusts. - Dave

To be clear, if a rehab is planned, I'm assuming that FULL MARKET VALUE = pre-ARV, so the entire deal will need to be re-financed (yet again) after rehab has been completed. Is that correct?

Sean, I appreciate the thoughtful reply. When you say "owns," the property is deeded to the trust, whereas the LLC is the beneficiary. So, the trust is the "owner." Interestingly, however, the trust can roll up to a Wyoming LLC and receive zero charging order protection, because the plantiff will go after the beneficiary/LLC.

So, still wondering when/whether the State of trust really matters.  - Dave

Hi, everyone. Question around Land Trusts and in-state Operating LLCs. When an in-state LLC is the beneficiary of a Land Trust, you have a legal entity that is recognized by the State (ie. the LLC) that can take action in court (eg. evict tenants).

This begs the question;  Why can't all of my Land Trusts, then, be formed in Wyoming?  The only thing that springs to mind is possibly scaring off lenders?  Would love to hear your thoughts.  Thx!  - Dave

Yeah, I feel the same way.  I've been champing at the bit to go, but know that I want to get this (and my corporate structures) right.  It's funny, but the BiggerPockets podcasts keep droning, "go, go, go!  Make a move!  Just do *something*!," and I'm not prone to analysis paralysis, but it seems pretty short-sighted to leap before getting stuff like this right Day 1.  The waiting is killing me!  :)

I know that it's supremely important to show that you are not the business and the business is not you, in order to prevent piercing the corporate veil.  Doesn't it seem like personally signing for business loans is a problem here?  I understand that this is done all the time, but it feels like some other strategy should be used here.