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All Forum Posts by: Joseph Velez

Joseph Velez has started 8 posts and replied 27 times.

Since I was asked about LLC's this week I'll share this article I read today.

There are four benefits of creating an LLC for your rental property:

1. Limit Your Personal Liability

If you own your property as an individual and someone files a lawsuit against you, then your personal assets are at stake. However, if you create an LLC, then the only assets at stake are those owned by the LLC. In other words, your rental property is the only asset at stake and not your personal finances.

2. Keep Your Rental Properties Separate From Each Other

In addition to separating the rental property from your personal assets, you should also separate your rental properties from each other. If you own multiple properties, you can “insulate” each property from liability claims by setting up separate LLCs for each property. If you have all of your properties under separate LLCs, then if someone files a lawsuit pertaining to one of your properties, the rest of your properties will not be affected by the lawsuit. This effectively separates and protects each of your properties.

3. Pass-Through Taxation

Pass-through taxation is a benefit of individual-owned businesses. Normally, a corporation is taxed directly on its profits and owners are taxed again when they make income from their business. With an LLC, you get the benefit of the company's income "passing through" to you as the business owner. Essentially, all income made by your LLC (your rental property) will flow through to your individual income tax return. This minimizes the amount of money taken out of your income for taxes.

4. Easily Separate Business and Personal Expenses

When you create an LLC, you should create a separate bank account for your LLC. That way, your personal expenses are separated from business expenses.

This makes it easier to claim business expenses when it comes time to do your taxes. Separate bank statements make it clear which expenses are business and which are personal.

Who Should Create an LLC?

Any landlord can benefit from creating an LLC. Whether you have one property or several, you will benefit from pass-through taxation and protecting your personal liability.

LLCs can be especially helpful if there are multiple owners of a property. When you create an LLC, you'll create an operating agreement that outlines the rights and responsibilities of each member of the LLC. This can help you seamlessly manage the property and protect each member of the LLC in case of legal trouble.

Post: Orlando Neighborhoods for small MFH

Joseph VelezPosted
  • Real Estate Agent
  • Orlando Fl.
  • Posts 30
  • Votes 5

Your welcome Easton, your welcome to contact me with any questions or if you need additional information.

Post: Orlando Insurance and Property Management

Joseph VelezPosted
  • Real Estate Agent
  • Orlando Fl.
  • Posts 30
  • Votes 5

Hi Dan,

I would be happy to help you on both counts, we have a couple of Insurance companies we recommend to our all owner clients and we can definitely help you with managing your property. take a look at our website and reach out to me for those insurance companies.

Post: Orlando Neighborhoods for small MFH

Joseph VelezPosted
  • Real Estate Agent
  • Orlando Fl.
  • Posts 30
  • Votes 5

Hi Easton,

If your Goal is to maximize the rental income, based on all the rentals we manage some of the best areas I would recommend would be Winter Garden, Windermere, Oviedo, Clermont, Lake Nona, Altamonte Springs, Winter park, Colonial Town and Apopka. your welcome to reach out for free rental analysis if you find some properties you like.

Post: I need realtor suggestions

Joseph VelezPosted
  • Real Estate Agent
  • Orlando Fl.
  • Posts 30
  • Votes 5

are you interested only in the Connecticut area or would you consider buying in Orlando Florida?

Post: Wall Street Firms Are Buying Up Single-Family Homes

Joseph VelezPosted
  • Real Estate Agent
  • Orlando Fl.
  • Posts 30
  • Votes 5

American investment banks are purchasing single-family homes in an effort to profit upon skyrocketing rent and property values.

As The Daily Wire previously reported, CoreLogic’s Single-Family Rent Index from April showed a “national rent increase of 5.3% year over year, up from a 2.4% year-over-year increase in April 2020.” The group noticed that “as demand for more space and outdoor amenities remains, detached rentals, in particular, are experiencing accelerated growth with a 7.9% year-over-year increase in April, compared to growth of 2.2% annually for attached rentals.”

A more recent report from the National Association of Realtors explained that average American home prices in June 2021 reached $363,300 — a 23.4% increase over the average of $294,400 in June 2020.

As CNN Business writer Hanna Ziady summarized, rapidly rising rent and property values are drawing Wall Street investment banks to the housing market:

According to John Burns Real Estate Consulting, in the first three months of this year, nearly a quarter of all homes sold in the United States were going to investors. That’s a broad umbrella that covers everything from mega institutions to individuals buying vacation homes, but BlackRock, JPMorgan Chase and Goldman Sachs were among the big-name buyers.

Institutional investors still own only about 2% of all single-family rentals in the United States, or roughly 300,000 homes, according to John Burns research director Rick Palacios

The same trend is occurring in England, where American companies are likewise purchasing residential real estate:

Institutions poured a record £3.7 billion ($5 billion) into the UK build-to-rent sector in 2020, almost a third of which came from first-time investors, according to real estate consultants Knight Frank. This year’s number is likely to come in even higher, with inflows in the first three months of the year alone reaching almost £1.3 billion ($1.8 billion) — a 16% increase on the same period last year.

One of the institutional investors actively seeking single-family housing opportunities is Goldman Sachs, which earlier this year bought 900 single-family houses in the northwest of England, and is now partnering with developers to build more homes

How do you feel this affect the regular small investors?

Can small investors compete in a marketplace like Orlando?

Thanks to a strong economy, Orlando's rental market continues to boom. It is consistently named as one of the best rental markets in the nation and the #1 place in Florida to buy a profitable rental property. While tourism is one of the driving forces in the local economy, Orlando is also an important high-tech hub. Since job opportunities in Orlando are growing, people from all over the country and even some other countries are choosing to move here. This directly translates to a boom in rental income as there is a resultant increase in the demand for both residential and commercial property rentals, and this means steadier income for investors in Orlando real estate market. The soaring rental rates are good signs for real estate investors. Around 46% of the households in Orlando, FL are renter-occupied.

Flexible Tax Laws

Investing in Orlando's real estate market can help investors to lighten their taxes as Florida is one of the few states with no personal income tax. Its flexible tax laws are a blessing for investors especially in this climate of a booming economy. are considered to be the 4th friendliest laws in the country which is why a significant number of businesses choose to be based here.