All Forum Posts by: Les Jean-Pierre

I would ask her how to follow the formalities and for one operating agreement. Then set them up yourself. Only one LLC per property.

I would talk to a lawyer but I would think you would have one LLC be the Managing Member of the two other LLC's. However, I don't think this is necessary. As the others have stated, having the proper amount of insurance is more important. I hold my property in a single person LLC and use Intuit's Property Manager and find I am way more organized. I also was sued and at the end of the day it is the insurance company that hires the lawyers and pays the settlement. I would also say that if you go the LLC route, it is not the set up that you have to worry about it is adhering to the formalities of the corporation. A lot of people worry about the piercing of the corporate veil but that was never an issue in the suit.

Also, be prepared for some silly things because they are going off a list. They wanted the insurance company to be NY based which I think it was not but they accepted my insurance. They asked for a cost of living increase clause in my commercial lease but it was a two year lease. The loan terms were ok at the end of the day.  The process did force me to have all docs pertaining to the property scanned and filed so, that is now a nice thing.

Hi, I don't know if the NYC market is one to compare but I just did a refi on a three unit mixed use(two residential, one commercial). I went directly to the lender. I didn't have to pay points. They had a 1% item that included the appraisal, inspection and underwriting fee. If the building did not pass inspection, I got most of it back. In NYC, a lot of people use brokers but I had seen on another blog this lender did not charge points so I went with them. In terms of putting a package together, it was some work but nothing you can't handle. Might try a local bank that does small mixed use. Overall, I think I did ok.

Another item is that the stock market has historically beat inflation while real estate appreciates at inflation. Maybe this does not matter if you flip or buy at extreme discounts. I think you need to do both.

I work a corporate job and have taken advantage of employer matches for 16 years. It definitely adds up. I also never understood why people don't contribute to a 401k that offers matches. I also agree with you that it reduces your tax liability.
When I started out, I played with the contribution numbers and saw what my paycheck would be like with and without my contribution. It became a no brainer to me to contribute.

Now, I also want to invest more in real estate and I have all this money in my retirement accounts and it would be nice to be able to get access to that cash in a way that does not cause a big tax hit. The concept of buying and holding in a SDIRA might not make sense for me either. 401k's have other downsides. There are not great investment options(I don't like mutual funds), most employers screw you on fees, and there are proposals floating out there that 401k's over $3 million dollars get taxed in some way over and above 401k's under that number. I think a person should do both if possible because investors need to be diversified. It also depends on your style. Real estate is more hands on and allows for more leverage. Also, after 2008, aren't most stock investors institutional investors? I don't know if most people trust the stock market.

Great job.

Hi, I have a three family in Brooklyn and pay for the heat. Obviously would like to change this. The building has one furnace and one water heater. Is there a way to have three meters for each unit without having three separate furnaces/water heaters? I know the proper fix is to do the hard work and completely make everything separate but wanted to see if anyone has a perspective on this. Thanks

Whatever the law is, I would follow it. I had a similar situation. In NYC, it is 30 days, so after the eviction, I even waited a couple of more days and then cleared out the place. It was crazy. Most of it was junk but the tenant left two flatscreen tv's. She tried to come back and say why did I take her stuff but I kept the eviction papers from the marshall and had a witness who would attest that she did not come back within 30 days.

Welcome. I grew up nearby in the Five Towns.