All Forum Posts by: Jenna Bamlet

@Tony Figurelli yes Nail and Bolt is set as a parent company for us members. In order to pay Nail and Bolt the 10% it collects off of each property that we do, per distribution and tax purposes does it need to be put on the sub LLC for this property. So it'd be Nail and Bolt L.L.C. 10% economic interest, Shane 10% ownership interest, Me Jenna 80% ownership interest. Then once the rehab is done and the property is refinanced I pay out my partner and Nail and Bolt, and amend the sub llc for this property. Refinancing it into my personal llc for the rental property.

@Basit Siddiqi Our first property was profitable. Definitely a learning experience.

Thank you everyone for your input, much appreciated!

I'm relatively new to real estate investing in Jacksonville, NC and would like to start my own Brrr property. I am currently a member of Nail and Bolt L.L.C. There are four of us on this L.L.C. We have successfully completed one flip and sell. Per our L.L.C. we are to have a operation agreement. Granted we are all new to the real estate investing world and still learning as we go. I have found a property and taken the lead on it. I am using Do Hard Money for the financing and I am in the final process, just waiting for an investor to invest. I want to be able to protect myself legally and I'm not sure what the best type of operating agreement would be best since this property will be my personal rental and not Nail and Bolt L.L.C. 

I'm looking to find the best way to go about this legally with the other managing members of Nail and Bolt L.L.C. One of my partners have invested a portion of money needed for closing, so I'll need to legally have his investment written up properly per his return and for tax purposes. Also per our L.L.C., the way I understand it is each member has 25% stake so legally, unless stated on the operating agreement, they are entitled to 25% of said property. 

I'm not sure how to write it up legally to protect myself from any member from trying to claim a percentage of a property that they were not a part of. 

Nail and Bolt L.L.C. was originally started so that each of it's members can use the L.L.C. to not only have financing available, but also so that each of us could have our own properties being renovated. That's the importance of the operating agreement. It shall state that the other three members are not a part of this property and will have no tax responsibly or any right to any profit made on this property.