All Forum Posts by: Jeffrey S. Breglio

Bill, hope this sparks discussion for local peeps. Here's another article about rents.

http://www.sltrib.com/news/3112372-155/too-many-sa...

prices for both purchases and rents are going up faster than incomes. population is driving it up, but more and more people are being priced out!

conclusion: keep an eye out, stay informed, and adjust strategies as necessary!

Jeff

To quote the Imitation Game: "Sometimes it's the very people who no one imagines anything of who do the things no one can imagine." 

Stick with people who support and encourage you. Attending local REIAs is great because everyone there will be exactly what you need. Get educated, find an experienced mentor, read, watch, and then jump in with your excitement. :)

Jeff

For wholesaling purchase agreements and assignments, I definitely recommend talking to an experienced investor and/or a local attorney who KNOWS what wholesaling is. Each state has slightly different rules. Some states even require a license to wholesale, or have rules about how you can do it without a license. That's the biggest issue. Simple contracts and assignments can be pretty universal, but experiences investors will have certain clauses that they stick in to cover issues that arise locally. 

Happy investing!!

Jeff

If you want to stop by my office, I'd be happy to spend some time discussing the local market and networking. PM me and I'll send you info

Welcome! There are great REIAs here in Utah. SLREIA, mentioned above. Utah Valley REIA, Norther Utah REIA and Utah REIA. All have monthly meetings (like $100 a year to join) and luncheons (free). Start networking and getting to know other investors, learn the different types of investing, pick one you want to focus on and learn about it. Then get at it!

Jeff

Welcome! Brandon is right. There are great REIAs here in Utah. SLREIA, mentioned above. Utah Valley REIA, Norther Utah REIA and Utah REIA. All have monthly meetings (like $100 a year to join) and luncheons (free). Start networking and getting to know other investors, learn the different types of investing, pick one you want to focus on and learn about it. Then get at it!

Jeff

Luis, I have clients jump right in to wholesaling and do extremely well, and very quickly. I find it's more about the motivation and willingness to do what it takes. Education is important as well and making contacts, so attending your local REIAs is very important. Most people who attend those are very helpful.

As to the contracts, while all are very similar, yes, things can vary by state. A few states also require a real estate license to wholesale. Other states don't require a license, but have pretty strict rules about how you market the deal (that is, it can't be wholesaling a house, but rather the contract itself).

You're on the right track. Keep going. Talk to some other wholesalers in your area. They will be a wealth of information. And keep up your excitement!

Jeff

There are two main types of LLCs that I set up for my RE investors: A tax savings LLC and an Asset Protection LLC. They are different. The Asset Protection one is for rental properties (long term holds). Your tax savings LLC is used for pretty much everything else: flipping, wholesaling, real estate commissions. Do not mix them up or cross-use them!!

Your tax savings LLC should ALWAYS be in the state in which you reside because that's where you conduct your business.

For the asset protection LLC, my first recommendation is always the state in which you live if you have properties there.

When you have out-of-state properties, a typical scenario for my clients is that we set up an LLC in their home state, title the out-of-state property in a trust, and then make the beneficiary of the trust their LLC. This works because an LLC must be registered in any state that it's doing business, regardless of where it's set up. If the trust owns the property, and particularly if you've got a third party property manager, then you don't have to worry about registration, registered agents, fees, etc. in a bunch of different states. Trust are not registered. But as the beneficiary of the trust, the LLC provids the protection

An issue arises with the "doing business" definition. The LLC has to be doing business somewhere. So setting up, let's say, a Delaware LLC, when you live in CA, probably won't get around the CA LLC tax unless you argued to CA that you run your business our of DE and pay DE taxes. Every state wants its taxes and someone is going to collect it. So this is a discussion with your accountant and your attorney if you want to set up an LLC out of the state you live in.

Because of that "doing business" in requirement, doing LLCs out of your home state doesn't usually make sense (although, on rare occasions and specific reasons, I have created them for clients).

You family living trust provides no protection. But should be incorporated into your overall asset protection plan, usually through transfer on death agreements. DO NOT have your family trust own either of the two types of LLCs I am describing.

A "land" trust can be used for additional privacy, which can be helpful in asset protection as well.

And your Asset Protection LLC should be at least 2 members. Your Tax Savings LLC can be just one. Both should be manager-managed.

Hope that helps. Let me know if you need anything else. 

Jeff

PS. I know Lee. He's here in Utah with me. Great guy.

Welcome Jesse! Start by coming to some of the local REIAs. They are fantastic. You can google Salt Lake REIA, Utah REIA, Utah Valley REIA and Northern Utah REIA. All have monthly meetings and some have multiple luncheons. They are a great source of education and networking opportunities, a variety of speakers on a variety of topics. Then take some time talking to other professionals to build your team: property managers, wholesalers, CPAs, attorneys, agents, contractors, etc. The more you learn, the better off you'll be!

Jeff

Here's the same recommendation I have provided hundreds of clients on dozens of outfits like this. I do not have any personal knowledge of this one.

I have seen dozens of these types of companies rise and fall in Utah over 15 years of my experience here. Many of them have the same owners as previous ones that went bankrupt. They are modeled off of national companies that do the same thing. Get you to pay a lot to be part of the club by telling you they are going to bring you deals. So my advice is BE VERY CAREFUL about paying (usually a LOT) of money to be part of a system that brings you deals, education or whatever. Most clients that have been involved have had bad experiences. A few have good experiences. I'm sure a lot depends on the individual investor. But I find that most of these over promise and under deliver. They also bring you into a eco-system where they control all parts of the deal: hard money financing, wholesaling, property management, sales. They make money at all levels. Most deals are also out of state, and I'm not a big fan of doing that unless you're a VERY sophisticated investor. The deals, when taken as a whole, are never that great to the investor. And you can get the same opportunities, and possibly better education and networking at the REIAs, and for a just a few bucks. Also, these always seem to pop up in Utah County. That speaks a lot for itself.

In short, educate yourself cheaply first, Attend REIAs, talk to others, read. Then you are in a better position to analyze the value of what you are buying.

Jeff