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Delaware LLC?

I can not answer that question because 1) I do not know what state you live in and 2) I do not have enough knowledge (yet) about Delaware LLC for rental properties.

The other knowledge I have about Delaware LLC is that it's pretty darn good (not the best) for business purposes. For example, dental business or doctor business or Engineering Firm, etc.

It is best to stick with LLC of where your rental properties are located.

For example, you can have one land trust and one LLC for each of your properties followed by, let's say, S or C Corporation. Mind you, make darn sure that S or C corporation does NOT own any properties! S or C Corporation just manage your one or multiple LLCs.

To answer your question about multiple Land Trusts into one LLC. The answer is: You can but I wouldn't do it.

I'll explain a little further. Assuming you do not have the S or C Corporation (it's a public face). Then your one LLC is forced to be the public face. The plaintiff sues your one LLC. Prior to file a lawsuit, the plaintiff has no knowledge that your one LLC has multiple properties, in part, because of Land Trusts. Before you know it, the plaintiff's attorney investigated and found those multiple properties within your one LLC. Plaintiff and it's attorney will say "BINGO!"

How would I do it? One land trust, owned by one LLC for each properties managed by an S or C corporation.

Overkill? Yes and No. Yes, it is an overkill if you're never sued for the rest of your life. But, on the other hand, No--it is not an overkill when you can lose all of your properties.

Some states are cheap when it comes to LLC. Other states are more expensive. In my state of Illinois---just for one LLC---it costs $500 to create and file with Secretary of State, then $250 to file annually.

Other states are lucky---some only requires $75 just for one LLC! UGH!!!!

Debbie

Ckehayov,

I'm not an attorney. I can only offer you free advice that I receive from my attorney brother and a friend of mine, a trial attorney Howard Spiva . He's that GOOD! My only problem is that it's hard to find good attorney in my state because neither are licensed in my state nor personally know any Illinois attorneys. So, I'm on my own in that department.

Before I go any further----each state has it's own rules for Land Trust and LLC. Therefore, a GOOD and KNOWLEDGEABLE attorney is a must. You could do DIY for SUBSEQUENCE Land Trust/LLC but you MUST know what you are doing. You do NOT want to do any "Cookie Cutter" type asset protection. Nor do you want to run ineffective entity that can easily be thrown out by court Judge.

Here's goes:
Land Trust----this is a trust that provides anonimity only. Nothing else. It is NOT a true asset protection. It can provide you different purposes.

In my case for Land Trust, I can have this Land Trust created because I do not want my name in public view. I can put a newly purchased property into a Land Trust. Then use a Manager Managed by a LLC.

LLC---Limited Liability Corporation (FYI: there's no such thing as "Limited Liability Company"). This trust has a fairly broad use. It can be single managed. It can be multi-members. It can be Manager Managed. It can be "checked off as C-Corp" or "checked off as S-Corp", etc on IRS form.

It is really too complicated for me to explain here on this forum.

But to answer to your question, the manager-managed LLC would be listed on the mortgage. Do be aware that if it's brand new or fairly new LLC, most lenders will want you to personally sign as a guarantee payor. That is okay because this form is not for public information. Eventually, any future mortgages under that specific LLC, you will no longer need to personally sign for it.

I hope I shed a little light for you but I suspect that I created more questions or theoretically ideas for you. :idea:

I do want to point out one more thing-----A very good trial attorney such as a friend of mine has resources (private investigators) can help pierce asset protections (entities). So do not assume that with asset protection, you'd be 100% protected. Asset protection with layers of entities do help a great deal because majority of attorneys do not want to take the time to pierce. But it still takes one aggressive attorney to pierce.

I highly recommend that you study asset protection before you contact RE attorney or Estate attorney.

Debbie

Excellent point, Ryan! :wink:

Debbie

I could but it would take quite awhile because there's already existing public information that has my name on it. Not to mention that the mortgages are in my name. So, I decided not to. I just make sure that they are leveraged.

Next property(ies) I purchase will be put into Land Trust and LLC in order to prevent my name listed in public record and mortgage. However, I may have to personally guarantee the mortgage(s) in order to have LLC's name on the mortgage(s).

Debbie

I have two personal homes with mortgages (one current about to sell with another being built) plus two side by side duplexes and a house.

They're all in my name.

If I were you, first thing I'd do is to talk to your current mortgage lender and ask plenty of questions. You just may find that you can get another mortgage.

BTW---your income is NOT the only income the lender looks into. The lender looks at rental incomes as well. Of course, they look into whatever 401K or Deferred Comp or ......methinks you get the drift. :wink:

Debbie

If you have been using landlord2landlord.com, remind them that you are already their client. You should already be grandfathered in. Give them a call.

Debbie

Before you buy a property, first check this link: http://www.dea.gov/seizures/index.html for drug laboratory history.

Last thing I'd want is for you to buy and learn that you must spend extra $$$ required on extensive rehab on drug or meth houses!

Debbie

Karemcd gave good advice.

I do have one other comment---it is possible that the owner is not aware of lousy PM or that owner is aware but is stuck with their agreement until expiration.

You might want to keep that in mind. Plus, any documents you have just may be what the owner could use to fire the new PM!

Debbie

All responses are great and have nothing to add with an exception of one thing:

In the future, do videotaping the premises prior to moving in and just after moving out (before leaving key to the landlord or countertop).

I, as a landlord, videotape everything before tenant moves in (with new tenants on tape) and after they move out.

How everything do I mean? I videotape cabinet doors/drawers opening and closing, toilet flushing, faucets on and off, light switch on/off, doors opening/closing, walls, ceiling, light fixtures, flooring, exteriors, front/back yards, front door, garage, Tenant's automobile(s) including license plates, etc. Seriously!

Debbie

Yes, it is legal.

Generally, landlords put the security deposit equals to monthly rent.

I put security deposit just under the monthly rent to make it harder for tenant to "try" to use security deposit as last month's rent.

Debbie