All Forum Posts by: George Bell

Hello, 

I’m curious to hear from experience investors about how they structure/ organize there LLCs. From local real estate meetings , real estate attorneys, and other local investors I’ve heard different ideas and I’m not sure which direction I would like to go. 

1. Have your portfolio in one LLC . Get a large insurance umbrella policy for that LLC for protection. So in the event of legal troubles the umbrella policy should cover the potential damage before they can come after your properties. Umbrella policies are only good per LLC so it wouldn't make sense to spend the money on multiple umbrella policies for multiple LLCs imo.

2. Have your properties in multiple LLCs . Therefore they can only go after what is in each individual LLC.

3. From a local RE attorney. Set up partnership ship LLC - have the deed of each house in the partnership LLC. Set up another LLC to have a 1% stake in the partner LLC. The LLC with the 1% stake is responsible for contracting work and property management. Therefore if you come upon legal trouble they can only go after the LLC with a 1% stake , therefore the most they can get is 1% of the value of the property .

I could see some pros and cons of each. I’m curious to hear from others with larger portfolios and how they are structured.  Thanks 

Hello, 

I've been BRRRing and using 30 year DSCR loans. So I have been researching making an extra principal payment every year and how it will cut down your mortgage to between 21-23 years. I'm debating if this is worth it in the long run because If I do then I get them paid off earlier but at the same time I could be using that extra money to expand my portfolio and buy more houses . What's everyone thoughts on this ?

I currently have 7 houses and at a pace now of 3-4 more SFH per year

Thanks ! I just found the utility allowance sheet. The house next door is section 8 and in the winter they keep the windows open and the thermostat on 90 . So there’s no way I would be responsible for paying the utilities. The landlord next door probably pays over a thousand a month in utilities for a $1360 voucher . Not to mention the wear and tear on the furnace . 

Where I’m at water is leinable to the property owner so if I have the tenants pay utilities and they get the utilities allowance . If they don’t pay the water and move out then I’m fully responsible for the water bill. 

I don’t really see an upside to section 8 anymore. There’s way too many unknown variables . Seems like I would have to fully trust the tenant .. which from talking with  other local landlords seems insane.   Even the landlords that win the court cases say they never actually see any money from the tenants . 

Hello, I have a few SFH rentals . I've never had a section 8 tenant but am looking for general information.

I know how to look up what section 8 would pay for rent based on bedrooms and fair market value for the area ,  but how does this work with utilities?

I heard that it can be paid by the program or by the tenant . 

Certain vouchers include utilities but is there a limit on how much they cover for utilities?

What if the  tenant can not pay the difference for what the voucher will cover and what the bill is  ? 

If there is a couple thousand dollar water bill and the tenant vacates then is this a landlord problem to pay ? Will the housing authority do anything in this instance?