All Forum Posts by: Fred Mejias

About to start first rehab. I wanted to know as an owner when I pay a individual to do work is that different than when I pay a company to do work. Should I have contracts for all jobs being performed or is it okay to have some one just do a job without a contract (i.e. demo work, etc.) When does something get 1099? And are there other thing my wife and I need to be aware of when recording payments for work done?? We are just trying to start this off right and just looking for some insight from those who have done it. Please remember we are not doing this as an LLC, just as the owners of the property. Thanks for all the input!!

@Soh Tanaka My wife and I are new investors about to close on our first investment property. So we would love to take a look at it.  Right, now we are probably going to set up the bank account dedicated only to the property to start. But anything else to look at will be great.  We love learning from others experiences.   

@Loren Thomas  I have ceiling fan (no light) in bed room. I want to add a light to it using the light kit, but when I look in the switch the electrical wire is two wire (no red). So I am not sure how I can add a light to the fan if there is no three wire at the switch for the light.  What do you think? 

@John Mocker thanks for your input.  For General and Professional Liability coverage, do I just contact my insurance company?  Are there certain companies that specialize in this area or are most insurance companies able to provide this service?  And how much is enough coverage? Also could umbrella insurance be put in place of any of these insurance coverages? 

Finally, is there anyone else who has done this and have any plus or minuses to add? much appreciated!! 

@Jessica Zolotorofe So no personal checks!! That sounds reasonable. I know our intention is to create a bank account for the property. So all property transactions will go through that account. I would assume it would be similar for the LLC; have its own separate account in order to keep track of all transactions from the LLC. In addition to maintaining that separation. Thanks for your insight!!

Those are some good points I was not sure about. I totally understand the separation of funds (personal and llc) and like a lot of the setups and duties you mentioned fro the LLC.

@Jessica Zolotorofe how about funding the LLC? I understand that an agreement between myself and the LLC would be establish and a monthly fee similar to any other PM company could be paid to the LLC. But the initial set up and working capital for the LLC; would come from my personal account; how is this captured? In the LLC operating agreement or some other document?

In addition, the set up having the LLC contract and pay for services required on the property sounds great, but how could I fund the LLC so it can handle this sort of scenario in instances where the LLC is low on cash.

Sorry for the questions, I just want to make sure that if I do something like this I can maintain a clear separation between property owner and business owner.  

Hey BP community,

Hi my name is Fred, I am in the process of finishing up my first investment deal. I bought this under my name. I want to self manage this property. I was thinking I should do this management as an LLC to separate ownership and management even though I will be doing both. Maybe more to keep my personal removed from the daily operations of the property and have the renter contacting a company (LLC) for operations and not me on a personal level. This way, it presents a business like atmosphere for the renter and not like they are dealing with an individual. Plus it will force me to put in professional systems, procedures, policies, etc. in order to make it work efficiently.

If anyone has done this and would like to share there pros and cons, I would love to hear it.  Thanks