All Forum Posts by: Gerald Marshall

Thanks Guys.  @Daniel Hyman, @Steven Hamilton II, @Jerry W. Would it be possible to run the management side of the business through the S-Corp and just hold the properties in an LLC. Would this limit exposure to taxation. I do not plan on taking a salary, but was planning on my wife taking a small salary at a lower tax rate which is provided with an S-Corp.

Put your partnership on paper with a lawyer, make it legal.  No matter if the other person(s) are family or old college buddy, protect yourself and all parties involved.  Business is business.

I've been a landlord for about 5 years now and use the proceeds as income like most do in the beginning of their REI careers. The question is, whether to initiate a S-Corp or LLC for my passive income. My CPA recommends an S-Corp. Her reasoning is that a "S-Corp is where you want to be in the future, so start there". But, I hear and see so many who deal with Passive Income using just the LLC. What are the drawbacks from becoming a S-Corp. What are the benefits? Anyone else have this dilemma?

We use Choice Home Warranty and have saved high repair/replacement cost. I have all of our properties on the program and have a pretty good price because of the number of properties I have. Last summer they replaced (2) complete A/C units for a $45 service fee each, and I've got another one having difficulties now. The good thing is it's only $45 to fix any mechanical issues on any of the properties, and they'll use my people as long as their licensed and insured.

@James Masotti, yes, he's holding a 10 year Balloon with a 30 year amortization.  I don't have intentions of going conventional in the near future, all depends on the market, there isn't a penalty for early termination.  I will probably do a few smaller deals with him in the next few years, but nothing large at this time.  He's left the door open for additional deals, but his age will keep the transactions small (under 150k) and nothing more than 10 years.  He doesn't wan to leave his family holding notes when he passes.  I'm funding my growth with leveraging my current properties that are free of debt.  I plan to leverage anywhere from 500k - 750k this next year.  I'll use this as down payments and light remodeling.

@Aaron Abraham, my deal went great.  I used an attorney whom I had used in the past to do everything.  My lender was placed as first lien holder with all the rights of a regular bank.  We went with a 30 loan with a 10 year ballon.  This was due to his age and not wanting to leave his family an investment they couldn't cash in.  For that he gave me a super rate and I avoided all the cost associated with a regular loan.  I just paid for the attorney fees and lender title insurance.  I would do this again and again.

@Hadi Alajmi, thank you for your reply.  I'll contact my agent later today and ask her about it.

Thanks

Is there a way of gaining access to MLS without having to keep bothering an agent every time I need something. I don't mind asking the agent for assistance if there's something in it for them, I don't work for free, and I don't expect someone else to either. But most of the time im just researching properties or trying to get the pulse of an area or such.

@Christian Bors, Funny thing, i started doing that last year.  I don't offer gifts for say, I offer upgrades.  For example, one of my properties needed carpet, and I offered to install laminate "hardwood" floors in the living and dining area when they renewed their lease.  They actually decided to sign a 2 year lease, which prompted me to do the kitchen as well.  These items needed replacing anyways so it was a win win situation.  I have 2 lease renewals coming in December, and will be making similar upgrades.

@Louise A. Always interested in a lender worth recommending.  Would appreciate the contact information.