All Forum Posts by: Jason Turo

Great suggestion @Brandon Hall, I will add that to my list.  Any particular scenarios you've had with clients that you could give an example?  Thanks for the suggestion.

Thanks for the reply @Carl Fischer.

How have/would you structure your business setup with you/spouse partnering with your colleague/spouse who are in separate states (all in one LLC, or two separate LLC's that each take ownership in a property)?

What is the best way to setup this entity for signing documents when purchasing properties (my spouse doesnt want to be included in the operations or signing of legal documents when purchasing properties, but obviously included in the ownership. Same with my colleague and his spouse)?

I am imagining simply my colleague and I opening an LLC in the state where we will purchase the first property, each putting in equal capital and purchasing said property. How will it work if we purchase properties in a completely different state from this entity and where we both reside?

Is there another way people set this up?

If you could go back to when you started planning your business, what questions would you ask your CPA and attorney when starting out a multi-member LLC for a buy/hold business?

Here’s a few examples:

1. Any advice on setting up a 2+ member LLC who live in different states and may purchase properties in different states from them?
2. How is the cash flow from the property taxed if in another state?
3. How should we structure the bank accounts for the business expenses and property expenses?

Things like that...plus if you have any answers to those particular questions, it would be great to hear those too separately.  Just looking for some things to be thinking about when setting up a multi-member business with members in other states.

How do you organize, store and use all your paperwork in your home office (mortgage docs, receipts, invoices, tenant docs, and longer term stuff like business pamphlets, handouts, etc)?

Any suggestions on how you organize all aspects of your paper life is welcome.

How do we accurately determine ALL property related expenses and reserves (for any location)?

A business partner and I are from different states starting a buy/hold investment company. We are thinking of opening an LLC with a business account as our "main" account for any business operating expenses and have checking accounts for each house. We are thinking about purchasing properties in multiple states.

Would it be advisable to start an LLC in the initial state of purchase, then register as a foreign entity in each other state properties are purchased or open LLC's in each state we own property (or another structure you recommend)?

@Rhett Tullis Definitely!

Hi there @Harvey Corsino. I just moved to Norman, OK from out of state and I do see recent growth and inflated prices in the area (OKC and Norman), but not so much inflated rents.  I am working to get familiar with the local areas, their rent rates, and vacancies.   If I was investing from out of state, I could see how I  could get persuaded into a higher rent/price ratio without actually knowing the areas.  Albeit I am relatively new to the area, I've seen some houses wholesalers are promoting would rent for $1000 after repairs, however the market is showing 60% of that at best.  Basically have to know the numbers!

If anyone in the area would like to get together to chat about rental rates in the Norman area, send me a quick message.

I agree with Lisa Thoele, it depends on the level of property and the end goal.  I tend to try and make everything match.  I recently took all the exterior walls down to the studs in a house and did the interior walls to match.  The percentage of cost and time increase for the total project was nominal and I do not regret it.   Could there be a possibility of regretting doing the interior walls, or regret not doing the interior walls after the fact?  And obviously, does the cost increase make sense for this project?