All Forum Posts by: George Skidis

Rule #1: Join your local REIA and volunteer to work there. Get to know the established investors verses the wanna bees.

#2: Read everything you can and ask the establishes investors what they read and who has a worthwhile course.

From my viewpoint there are too many gurus selling recycled information something they learned from someone else. You should look into Lou Brown's Whole Enchilada. It is a tad expensive but a less than 1/5 of the price of these weekend guru programs and it covers 100% of the real estate investor info you will need starting out.

Not telling you to rent or not rent. 

Here are some things to consider. A & B could be a front for C. They could move him in and never step foot in the place themselves. If one moves in, they all sign the lease and agree to the terms and conditions. Don't want the local code enforcement saying you falsified the residents. If you need to evict it is easier to evict named tenants as opposed to "Any and all known and unknown residents of 123 Mains Street Anytown, USA.

So "IF" you decide to accept all three have all three on the hook for damages. 

If one resident asks to be released from the lease, DON"T! They may be the only one with any assets after the destruction of your property. "Mr A you are free to move at any time. However, you are responsible for the rent and damages until both of your friends move out and surrender the premises."

As to the disability. You can ask for proof of income, but I would never ask what the disability is. My background check would be heavy on research into incidents involving the police and their outcome.

Good Luck and Good Investing!

The cost depends on several factors. location: California or New York versus the Midwest is a huge difference. Current local market: This may justify more expenses or restrict how much you should spend. What needs done: Is it a total gut rehab down to the studs? Or is it getting a makeover? Question is too general and open ended for a serious response.

If you wish to sell PM me with your phone number. I know a couple of investors down in the Marion, IL area.

First Join the local REIA. In your area that is the Chicago Creative Investment Advisor run by Jane Garvey. They meet in Lombard on the 3rd Sunday evening of the month. Go there: expand your education, NETWORK, keep your ears open and ask good questions. You may just meet the mentor you are looking for or even better the one you need. A lot of the BEST stuff is said after the meeting. Try and hang around and go out with the others afterwards.

Second: Don't feel like you are missing the boat. Real Estate will be here long after we are both dead and gone.

Third: Don't rush into anything. It sounds like you have a good job. Stat working on eliminating your personal debt and building that down payment fund. 

Thursday night's meeting of Illinois REIA was on just this subject.

My question is what this weekend only GURU bootcamp did you attend and how much did they want to charge you for a Wyoming LLC? The going rate seems to be about $6,000 each.

Wyoming in 1977 was the birthplace of the LLC. They asked the IRS how to tax an LLC. 20 years later the IRS responded, "We don't care, Just Pick One." That opens up Sole proprietor, Partnership, S Corp and C-Corp.

Wyoming is one set of expenses where you are a Domestic Business Entity. However, you must notify Illinois that you are a foreign entity doing business in Illinois. That is a second set of expenses.

Two Resident Agents WY $50 to $250 per year plus Illinois another $50 to $$250 per year.

Two State Franchise Fees WY $100 each year and Illinois $200 per year.

Your CPA has to file tax returns in every state that assesses income tax against your business. That is another $50 to $100 each year for each state.

You must have a physical address not a PO Box in every state where you do business. If you make a mistake and tell just one state on an obscure document your anonymity is toast. The reason for a physical address and not a PO Box is Service of Process.

So, your strategy is going to cost you up to $1,000 a year to maintain it. Before you make a dime. You start showing millions in assets it may be worth considering. Until then it is a waste of effort.

If your business gets sued in Illinois, IL law prevails since that is where you are doing business.

My suggestion is to obtain an LLC, in the state where you do business.

GET TONS OF LIABILITY INSURANCE! 1 million Singe limit liability on each property minimum. Then get an umbrella policy as well. Using a trust or business entity to avoid liability and then skimping on protecting others is a sign of bad faith and will make the judge mad at you.

Run your business properly and ethically.

Own nothing in your own name. Your personal residence in IL should be in a Land Trust. Your vehicles in personal property trusts. Never place your vehicles in the company name. Running out to get yogurt at 2 in the morning because your wife has a craving. Well officer yes this is a company vehicle, no officer I was not on company business, No your Honor I didn't know a 2 AM fender bender with a company vehicle could cost me all of my rental properties. 

One final warning. Once you get a Tax ID for your business a tax return is due on the VERY Next March 15th. Doesn't matter if you haven't really got anything going on. You told the IRS you were a business. The late filing penalty is $195.00 per month per member/partner.  4 members 18 months late the penalty is $14,040.00

When your only tool is a hammer, everything looks like a nail. Have a full toolbox of attorneys, insurance, land trusts, Family trusts, property maintenance, legal tenant screening and a network of experienced investors. Join your local REIA for a regular education. In the Chicago area Join The Chicago Creative Investors Association run by Jane Garvey. They meet in Lombard in the evening of the third Sunday of the month.

Whining about wine. My father managed a liquor store. Because of this I know more about wine and spirits than I should since I grew up working there. Alcohol as a gift can be a bad choice if you don't know your audience. Are they a Connoisseur, teetotaler, someone who abstains for religious purposes. a struggling member of AA. We never know.

Example: In 2010 my wife and I went on our first ever cruise along with about 200 other members, spouses and speakers which was organized by the National Real Estate Investors Association. One day I ditched a class, entered and won the Hairiest Chest Competition on the Carnival Miracle. The prize was a bottle of off label Champaign. Worst stuff I ever attempted to drink. So yes, I am the guy that knows there are several grades of tequila and will not drink anything less than a quality Reposado or single malt Scotch.

So to your question. A gift should be a thank you for excellent behavior. Given ""AFTER!"" they have gone. Send them a hand written thank you card and enclose small a gift card that earns you points when you buy it or benefits a charity YOU support.

As a landlord and income tax preparer I am glad to help. However, I am located in Belleville, IL

Some banks have trouble with both LLCs and Land Trusts. They want you personally responsible for the loan PLUS the property as collateral.

Owner occupied property does not have that problem with a land trust. If the property is owner occupied you can reference the 1984 Garn St Germain act. BUT you must tell the lender that the trust is for "Estate Planning Purposes"

After that nobody cares until you go to sell the property. Then title companies get real sticky on proving ownership, who has the right to sign the sales contract and who receives the proceeds.

Your last concern should be about who will get the tax bill and pay the capital gain tax due the tax year after closing.

Speak with a good income tax preparer and an attorney who specializes in these things BEFORE you change the title. 

A one time Pet Fee and monthly Pet Rent, are non refundable

A Pet Deposit IS refundable.

Your lease can charge all three. $50 pet fee, $50 per month pet rent plus a refundable $500 pet deposit against pet damages.

Make sure you meet the pet. If you are uncomfortable around it don't accept it.  Also make sure that the applicant purchases $500,000 renters liability insurance and that the company must notify you if the insurance is cancelled.