All Forum Posts by: Ben Kevan

some people here have recommended holding more than one property per LLC. Is that only a good idea for people who have a large number of properties so that they can spread the risk? What about people who own less than 10, for example?

The registered agent fee + annual state filing fee total is about $250/year per LLC. I was thinking of cutting that in half by putting 2 properties per LLC instead of one. Am I playing with fire? The max liability insurance that I can get on each LLC is the basic $300,000 liability that comes with a residential non-owner occupied policy (no umbrella insurance allowed on an LLC'd property according to everyone I've spoken to in my area).
Thanks.

IMO it depends on the amount of equity and not the cost / price of the property.

I currently have 2 properties under my name out of state. I'm looking at fixing my structure. But in California the LLC fees are $800 annually, and that would take a HUGE bite out of my cash flow.

My thoughts are a holding company, with child llc's holding properties with an equity up to 250k.

I have a TON to learn on this topic and the last few days have sparked some great new (and revival of old) threads.

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Awesome reply. Thank you. How much did the consultation run you?

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I'd do option 2 hiring someone to manage the entire project.

So I have the joys of mailbox money, and the funds coming in.

But, as others have stated, I'd roll those funds into option #1.

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What are the main issues people are afraid of?

From what I see so far, they are:
Personal Liability
Privacy (is this for liability reasons) (which Privacy? Living Address, Name?)
What else?

Michel,

Also, just because you utilize a property management doesn't mean you're not liable for the property. If I recall correctly, you're still 100% liable, although if there is neglect you can likely shift some of the costs to the property management.

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Tim,

That's the hard part. I've too spun off 2 retail online sites that I've ended up selling. One for auto car parts (niche market of 3rd Generation Eclipses) and Magic: The Gathering Cards. The first was a drop ship w/ minimal inventory, whereas the latter was full inventory. Both online only and both were really geared towards the market I was in, and as you state, Retail vs Real Estate Naming is hard.

I also want to keep the name neutral as I'd likely spin a site that'd provide as a portal for people to see the properties etc.

Thanks for the input. I'm nowhere near closer to figuring it out, but am building a good list.

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Why lend to someone at these rates, when you can put it elsewhere and get a much bigger return.

Look at the investment monies banks have made in recent quarters (ok the last 2 quarters may not be the best examples).

I would love to get my hand on more money at these rates.

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Trump is an awesome last name. Because it Trumps all others :o).

As for my last name, it's also very rare, and not many in the US. But, many perceive it as a first name (Kevin instead of Key-ven).

Burger King would be funny since a good friend of mines family owns 13 Burger Kings.

BK (Bankrupt) Investments doesn't sound too good.

I've considered Kevan Investments, LLC (also). But I think Kevan Investment Properties (KIP, LLC) would be pretty cool.

Still have to mull over a few things, since it'll be the holding company that I plan on holding long term, and spawn off child LLC's if my portfolio gets big (right now I'm a small investor with 2 duplexes).

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I highly recommend "The Dollar Crisis" and "Benjamin Graham's Intelligent Investor".

I have my thoughts of doom and gloom, but it won't keep me from acting.

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Well the idea is to have either Properties or Investments as the core of the name.

BK Properties or BK Investments (to an investor) doesn't bode well.
Ann brings up some great points about Single-Property vs Holding LLCs.
Boy the decisions, decisions.

I currently hold 2 duplexes. It's likely that I'll roll both of those into a single LLC, then consider a holding company.

Those with multiple child LLCs, how do you insure them? Under a single blanket?

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Originally posted by Op Tek:

A good strategy would be to target properties that would rent for cash flow or sell quickly in your market. This means properties that are no bigger than 1800 SqFt/ 167 SqM (stay away from high end/move up properties/apartments/commercial properties for now until you build enough of your bankroll) and properties that reflect the median price of your city which is ~$550,000 - these kind of properties will cater to first time home buyers or renters who want to get out of the apartment atmosphere and move into a private home environment.

Once you have targeted your properties, you need to determine your purchase price. Now most beginning investors when they buy properties, buy near or at market value and in some instances over the listing price because they didn't know any better. They are hoping that the home will appreciate significantly in the future and then sell it. That's a very naive way of investing, a savvy investor makes their money once they purchase the home. So being very detailed in all the costs associated with buying the home is needed when determining your price. The mathematics part of investing is very easy. It's basically: MARKET VALUE OF HOME minus YOUR PROFIT (anywhere between 15% to 20% of resale of property) minus REHAB COSTS (this is where many novice investors make their biggest mistake, they over-rehab everything. Remember that your properties are catering to first time home buyers and the property should reflect this. Some investors want to turn that first time home into a Ritz Carlton, that's unnecessary. So just imagine the property when it was first completed, that should be your guideline to rehabbing) minus PURCHASE COSTS (home warranty, fire insurance, title and escrow) minus OPERATING COSTS (months vacant either sold or leased, yard maintenance, utilities, garbage, water) minus MONEY COSTS (traditional bank loan, lines of credit, private money, hard money, interest only, points at close on escrow) minus SALES COSTS (Brokerage fees, Property Taxes, Title, Escrow, Buyers Concessions) equals YOUR BUY PRICE.

As I mentioned, the mathematics part of Real Estate investing is very easy, the challenge comes in being relentless and having the mind set that you will work harder and smarter than the other guy. Because if you aren't focused, then someone else is going to get that deal that should have been yours.

That seriously can't be your cat in the Avatar can it?

Daniel,

I started investing at 28, and am now 29 (quite the seasoned veteran /sarcasm). I was nervous as hell, and still am.

The method you want to take all depends on what capital you have available, what resources have available for your strategy.

I choose to buy and hold.

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All Forum Posts by: Ben Kevan

Ben Kevan has started 18 posts and replied 147 times.

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