All Forum Posts by: Elliot Starcevich

I like what you said about how it can be a distraction. Very true. I'd vote for you but it looks like I can only vote for 2 posts per day, and I already used both of mine on you. :)

I do want to listen to the gal on the forum. I appreciate any help I can get. Trust me... I'm moving one step at a time and I do not need distractions so I appreciate your advice.

As a newbie wannabe REI I sincerely thank you. Sometimes without face expression or tone to go off of it might be hard to see that 100% sincere and I hope to act on your advice if necessary in the near future.

Thank you for all the good information. You definitely know what you are talking about. I am trying to learn. I do have an LLC. Maybe that is a mistake. Maybe I will try and get rid of it and go to the umbrella policy. Thanks again!

Sorry for my "parroting." You are probably calling me out and I am not trying to question your knowledge. I am not 100% gullible to everything I read but I have to start somewhere, right? I will explore the umbrella policy. Please give me any other bits of information that you think will help me.

I hope I will be able to put it to use too. Multi family is especially desirable.

Sorry about the confusion. The LLC isn't my strategy... I just ment I'd purchase or close anything in the LLC name instead of my own. I suppose I like that separation. Again, had I known more about the umbrella policy I probably would have done that. But I'm knee deep already and now I just want to put my LLC to use.

Here's another though: at some point I want my LLC to build it's own credit. Or, more accurately, it's paydex. I already have a EIN and soon I will apply at dun and bradstreet. I think there is a two year waiting period or something like that. At some point, it's desirable for my LLC to have it's own purchasing power so I don't have to piggy back off my social security or personal credit all the time. Again, I think I like that separation.

Admittedly I'm probably "over protected" or overkilling it so maybe I'm jumping the gun a bit as a newbie. But I'd rather overkill than underkill. I'll probably stick with my LLC for now and (hopefully) actually put it to use in the near future.

What about for a double close deal (wholesale/shortsale)? What about for purchase at a county tax sale?

I will be the first to admit that I am a newbie. However, I will say that I read a few books and from what I gathered an LLC is a good way to acquire properties by these methods. Even if the "umbrella policy" is cheaper or better this is the first time I've ever heard of that. Perhaps I'll look into getting rid of my LLC, but it is not very expensive to maintain. Hindsight is always 20/20 and I still haven't done a deal or anything yet, but I've place a few bids and I'm about to send out some mailers that could possibly result in a double close.

Thanks for your feedback and I may switch to the umbrella policy. Thank's for the tip I haven't head of that until now.

Jeffrey - correct and correct.

Does anyone know about the "two reports that are due annually"? I know about the Texas Franchise Tax but I'd like information on the other.

I also had a CPA help me with it. Let me know if you have further questions and I'll let you know.

Drey - "I emailed my CPA, and she said that there are actually two reports that are required to be filed annually." What are the two reports? Please let me know. I got my Texas Franchise Tax squared away but I'm not sure what the other one is. Please let me know!

Thanks in advance to anyone who is reading this. This is my first post but I am excited about this community and I hope to learn a lot from it.

I started a Texas LLC in 2013 and I want to eventually buy multi- or single-family homes within the next few years and contract property managers. In 2013 I did not do very much with the LLC except pay for some gas (as I drove around looking at properties) and some educational materials.

In Texas, however, we still have to report the annual Franchise Tax which is due in May. I'm not too worried about it because my revenue was negative but I am trying to learn as much as I can as I go.

Any relevant information about the following would be greatly appreciated:

"Is this a passive entity as defined in Chapter 171 of the Texas Tax Code?"

I think I have to say no to this. I want to move to as passive as possible, but rental properties in Texas Tax Code technically are not passive right? Maybe I should put yes this year because I don't actually own any property though.

"Does the entity have zero Texas Gross Receipts?"

This is my main question actually. I looked around and I couldn't find anything that I really understood that explained what zero Texas Gross Receipts means. I assume I'll put yes here this year because I have zero (actually negative) profit, but what exactly does this mean and when should I say yes?

"Is this entity a Real Estate Investment Trust (REIT) that meets the qualifications specified in section 171.0002(c)(4)?"

I'm pretty sure REIT is a very specific conglomerate in which a group owns the property jointly and as part of a trust. Well I am the only operator/owner for the LLC so I figure I'll always say no for this.

I am trying to learn. Any information would be great. Thank you so much.