All Forum Posts by: Jonny Morris

Dear all, 

Just looking for some seasoned small business owners to throw out 'obvious' things for me to consider. I am making the transition from my first rental which is an ADU attached to the back of our property...into our "1st rental in the portfolio" which will be through my newly established LLC.

In terms of managing the business, and the expenses side of things - what should I be recording, tracking and expensing to the business account? 

- House purchase price (written from business account) 

- Contractor bills and rehab work. 

- Miles driven (documented) and gas to and from the project?

- Phone bill? 

- I want to go Pro on BP...could this be from the business account? 

Apologies if it seems naive - but I am hoping to glean some practical info. from you people living and breathing this side of the business. 

As always, appreciate your thoughts. 

@Andrew Babcock

Thank you sir! Appreciate you breaking down key aspects. I feel that our CPA is good and takes the time to break things down for me. I will ask more questions when I have formed up the plan and have a set structure for him to digest. 

@Thomas S.

...hence the HELOC and focus on growth. Thanks for the reinforcement of the importance of solid insurance!

@Bill E. re: systems this has now b come the core of my decision making process. Trying to establish deals, funds, quality tenants etc. 

Do you have additional areas where you believe systems are fundamental? I have just connected with a quality CPA and attorney (for worst case scenario).

Thank you all - I appreciate your thoughts. 

My reason for the LLC is to protect my personal assets and equity. In addition, I also wanted to set up a model/system that would allow for growth. I am aware of the conventional loans being harder to approve after 4+\-.

As for my numbers right now, very happy with them but currently in a different market to my future buys. Looking to implement BRRRR strategy.

How many people buy in their personal names for 4/5 properties? Is this then difficult to transfer later to an LLC?

I am hard working, passionate and ambitious. I have 1 rental, in the form of an ADU, attached to my personal property. I now have a HELOC ready to buy my next property. In order to grow my portfolio, I have decided to sit down with my attorney and start an LLC. Aside from this complex (in my opinion) aspect, I just don’t know where or how to learn about the “how to start a business” side. Where did you learn? I want to know what I should be filing for taxes, what benefits I could use through the business vs personal. I would love some guidance about the business side of things. The deals, financing, strategy, relationship with tenants understand ...but how do you run a business? Would love any book recommendations for real estate business starting out. How to grow a portfolio etc Thank you!!!!

@Jeremiah Purdum

Thanks for checking in Jeremiah! I haven't connected with him yet. I am in Butte on Weds looking at some properties. Would love to chat and see what he has available. 

Can you shoot me a message with his info please? 

@Costin I would be interested in reading your notes on this matter - thank you very much for the offer. I just came back to share I spoke with a lender who sees no issues with buying in personal name and actioning a “quit claim deed” to the LLC. I go back and forth and wonder with the “umbrella insurance” would this likely cover me in the event of a law suit? My main concern is something happening and my dream of investment being taken through a law suit...

@Joshua Davies

Very kind offer! Thank you again. 

I’ll ask a few questions of the lender I have connected with but would appreciate the offer to run a few questions by you. 

@Joshua Davies

More fantastic perspective! Thank you sir. I chatted with a lender a few weeks ago and will run this by him! 

Appreciate the time