All Forum Posts by: George Skidis

Yes, Get an application from each future resident age 18 and older. Then run their background. We use Rent Perfect for all of our tenant screening.

Join your local Real Estate Investors Association (REIA). The easiest way to do that is the "Find a REIA" tab on the National REIA website. They are a .org organization.

In Illinois only real estate agents can wholesale more than 1 house a year.

I am not an attorney and I don't play one on television. As someone who prepares around 150 tax returns a year, I know a little about the taxation of business entities. A single member LLC "CAN" be a disregarded entity for tax purposes. You can add Schedule C or Schedule E to your personal form 1040 return to handle taxable income. However, you CAN choose to have it taxed as a C Corp on form 1120 or an S-Corp on Form 1120s as you see fit.

There is one exception to filing a two member LLC as a disregarded entity. It has to do with the LLC Operating Agreement you use. I bought mine from attorney and speaker Lee Phillips. We sell Lee's package at a discount to our members at Illinois REIA. Taxation can be all about the operating agreement.

Short of a proper operating agreement a two member LLC must choose to file as a Partnership on Form 1065, C Corp 1120or S-Corp 1120s.

Changing title when the property is mortgaged is another issue. Under the 1984 Garn-Saint Germain Act You can legally transfer the title of your personal residence into a trust for "ESTATE PLANING PURPOSES", but NOT for liability protection. Your mortgage company must comply with the law. However, your mortgage company can bill you for their attorney's fees to research the matter. 

It is my non legal opinion that your LLC should manage the property but own nothing but a check book. It can rent from the beneficial owner (you, a trust or another entity) and then sublet the property to the occupant. In this way you do not have to be a real estate property manager under the laws of your state. No Real Estate Agent license would be required. You can also jump through the hoops and hurdles to be a property management company in your state.

When obtaining an EIN be very careful about which entity you choose, and the start date selected. If you choose a Partnership, C Corp or S Corp your first tax return could be due on March 15th, 2025. The late filing penalties are around $200 per Month per Member/Partner if you miss the filing date. This is the case EVEN if you have not actually done any business.

Always seek the advice of an attorney who specializes in the area of law you need help with. If you do not have an attorney go to WWW.Skidis.Biz and look for the appropriate LegalShield plan. Need more info on LegalShield call me at the number below.

Some H&R folks have earned the designation Enrolled Agent or EA. That person could handle it. Most of them are not EAs and a few in each office just started this year.

First, find out if your person is an EA.

Next, did you set up a Partnership, Corporation or an LLC that can be taxed as either one. That will determine if you claim this on a personal return or other type. So if you have a business entity other than a sole proprietorship you will file that business return and receive either a K-1 distribution or pay corporate taxes on the profit.

You cannot claim any expenses until the day you either sell or rent the property. Anything prior to that day is just added to the cost basis when the property is placed in service (sold or rented). Sounds like you have rented three rooms. The thing to remember is that house hacking could result in a profit. Figure that out up front.

This is a real estate investor meeting. www.ilreia.com Bigger Pockets overrode my post and publishes the wrong address. We are meeting at Walt's restaurant in Marion, IL  Alton meeting was last night.

I used to be a claims adjuster and worked Hurricane Katrina. Flood damage is not covered under homeowners or rental property policies. It used to be covered under a mobile home policy.

Flood insurance is required by lenders if the property is located in a flood zone. If you have not purchased a flood insurance policy, then no coverage for flood damage. Anyone within 50 miles of the ocean or a major river needs flood insurance. Unfortunately, if you community has opted out of the flood insurance program it is unavailable to you.

You would still have coverage under the following types of damage under most homeowners' policies.

1. Wind damage to the exterior of the property.

2. Interior water damage if the exterior was damaged by the direct force of wind or hail and created an opening in the exterior oof the building allowing the water to enter.

3. If you bought the endorsement "Back of Sewer and Drain" then any backup would be covered. up to that limit in your policy. 12 inches of mud would not be a back up. Raw sewage and grey water would be.

4. "on premises blockage" of a sewer line. If something obstructs the sewer line like tree roots, and grey water is trapped in the pipes and overflows the lowest point that could be covered. A sewer service would need to attest to the blockage.

The definition of a flood used to be the inundation with water of two or more contiguous properties or two or more acres. 

Your duty now is to preserve and protect the property from further damage. Board it up if needed after mucking it out.

First the Umbrella policy was a smart move. You can never have enough insurance. The umbrella policy also covers things not included in a regular landlord liability policy.

In Illinois you can own properties in a land trust that is managed by an LLC. The LLC owns nothing but the checkbook. Each property is owned in a separate land trust named in such a way that they cannot be tied to each other.

For the paid off properties they should each give you or your second LLC a mortgage. This is a process called equity stripping. It makes the property appear not worth filing a lawsuit. Make sure that mortgage payments or interest only payments are recorded

City of Belleville will inspect every inch of this. All trades (Plumbing, Elec, HVAC) must be on the city's approved contractor list, or they will not pass the work.  City of Belleville is only DIY for owner occupants. Proceed carefully with this.

Saturday Seminar
New Meeting Locations Upcoming Meetings

Madison County 3rd Monday at 6PM
Aug 19th, 2024

Sep 16th, 2024

Alton Sports Tap about 20 minutes from downtown Saint Louis. 3812 College Avenue - Alton, IL 62002. We meet in the Hockey Bar. 618-465-2539


Williamson County 3rd Wednesday 11:30 AM
Aug 14th, 2024
Sep 18th, 2024
Walt's Restaurant 213 S Court St, Marion, IL 62959-2707 618 993 8668

Our full calendar can be found at www.ilreia.com under the events tab.

A $10.00 Guest Fee will be charged to all non members.

The membership verification process for the Home Depot Rewards program ends on July 22nd. If your membership in Illinois REIA is expired on that date The Home Depot will remove the Agreement Code from your account and you will not receive the discounts or 2% Rebate for the first half of 2024.

The verification process is Has a hard finish on Monday, July 22nd.

Here are the answers to some of your questions regarding the first half rebates for those accounts under review.

If the member is current on their membership and completes the verification process, they will receive their first half 2024 Rebate in Late August to early September.

If a member renews their membership with Illinois REIA, which has lapsed for over 60 days or signs up for the first time during this verification process, the Home Depot will not issue rebates for the first half. They will, however, be eligible to receive a rebate going forward.

As a Chapter of National REIA the Home Depot relationship continues to offer our members great benefits such as:

• 2% bi-annual rebate on all purchases on registered tenders with our exclusive agreement code when they meet the $5,000 minimum per period. Members can update their accounts at any time by logging into their ProXtra account or the APP.

• Up to 20% off select Hampton Bay kitchen and bath cabinets via coupon through our members only are of the website.
• Gold status 20% off paints, stains and primers (1 gallon minimum- no maximum)

The process for escalating to gold status for the 20% paint discount is now automatic. Once you enter the agreement code and add all methods of payment, your account will automatically upgrade to gold status. After completing these steps you can verify gold status by going to the Program Details page in your ProXtra account. You should see the gold flag/paint roller icon indicating gold status. To take advantage of this discount simply enter the ProXtra registered phone # on the pin pad at checkout when purchasing one gallon or more of paint, stain or primer and the discount will automatically be applied.

Good Luck and Good Investing
George