All Forum Posts by: Louis Van Der Westhuizen

@Account Closed thanks again. 

@Account Closed thanks for your input. Is that the only way? Investors on BP make it sound so easy and yet the reality seems far from. I've seen mention of cash out refi and HELOC but not sure what the difference is if any.

I'm new to investing (research/planning and learning phase) and I've heard that you can't get a HELOC on a second home/ investment property. How are investors taking cash out of their rentals to reinvest in other deals? I'm in Southern California.

Scott Smith, thank you. I will look into this option and of course look for your article on the topic.

Thom

Your response also gives me hope, but I have a question. If I am holding the loan, and then transfer the property into the LLC but still hold the loan, then don't I lose the protection (anonymity) because the property is still in my personal name from a financial liability perspective? The corporate veil is not so much a veil at that point right?

Katie

Thank you so much for the response, very helpful.

This topic is pretty complex. I will likely go with the insurance policy option until it makes sense to switch over to an LLC. That said, I would love to get the referrals you mention so that I can speak to an expert in detail at some point. I am in the research phase and have not done any deals yet. My interest is in rental properties (single and multi-family) and also in flips. I owned a rental property in Texas for over 10 years which I sold in 2016. I am very eager to get back into RE investing, this time at scale, hence my interest in reducing personal risk but only if it makes sense. 

Ron

This is very interesting, thank you! 

Christopher 

Thanks for your response, that was helpful. 

Hello fellow investors, my question today relates to the use of an LLC for beginner investors. I understand the value of using an LLC to protect myself from personal liability, but here is what I am struggling to get straight.

1. If I setup an LLC I still have to use my personal finance to secure a loan, and most lenders will not allow you to transfer the asset into the LLC or at least this is what I have heard. Can anyone help explain how they have got around this issue and how newbie investors could use an LLC to acquire RE when the LLC has no credit history?
2. Some of the advantages of setting up an LLC like say tax advantages of doing a Nevada LLC vs. CA LLC also seem to be lost because the TAX liability is determined by the state in which you acquire the property and not where the LLC is setup. I live in CA so the state of CA will want their piece of the pie even if I setup in Nevada. Hence my struggle to understand if all the advantages written about are really accurate?

Travis 

I'm curious about what you did and how it worked out. Did you use the lead and coaching service and did that organization treat you fairly?