All Forum Posts by: Matt Morales

Thanks for all the responses. After more thought I agree with Joe and John. An LLC wouldn't make it any easier and would actually do the opposite and cost more money to do so. And John, I also agree, and j have some detailed excel spreadsheets as well. Thanks for the feedback and insight!

Hey everyone, I have a question about asset management when it comes to multiple properties. Specifically speaking in terms of how to financially manage it. Before I get to my question I want to make clear I am not asking about liability concerns; this is strictly a financial question. I currently have two rental properties and working on a third. I personally own them both, no LLC. Again, I know there's strong opinions on to have one or not but this is not about that… anyway, I am very organized and separate all Income and expenses from my personal bank account, and each rental. Each rental has its own bank account, I have spreadsheets for each showing what income and expenses were from what property. However, the more I acquire I can see that system can be quite cumbersome so my question is as follows:

Should I start an LLC as an asset management company to manage my assets? Meaning ALL rental income/ expenses flow in/ out of the LLC. One bank account, one spreadsheet to manage… just seems like it will streamline and make things easier. Thoughts? Thanks for any feedback and look forward to the insight!

I know this topic has been beaten to death!! I am not posting to get advice on quit claiming to an LLC or not to. I am specifically asking if anybody has experience in doing so, and subsequently had to file an insurance claim after the transfer. How did that process go? If you have transferred to the LLC, and the insurance was originally written in your name than the policy is void, correct?
and rewriting a policy for a business is completely different? 

Does anybody have first hand experience with insurance dealings as far as claims after a quit claim from personal to LLC?

Hey y’all, I am closing on my first property in a couple weeks. It will be in my personal name. I have a few questions that I’d like to get answers on because EVERYTHING I’ve read/ heard is clear as mud!

1. The obvious, personal vs LLC for liability protection. It is being purchased in my own name and I am familiar with transferring to an LLC, but I'm also aware of the due on sale clause. Even though the lender acting on that if I'm the owner of the LLC, AND making all payments,it's still an option that I'm concerned about. The second concern with transferring is I want to eventually do a cash out refi and pull my money back out and can't do that if it's in an LLC, correct? Now, I've read that I can simply transfer it back to me, refi, then transfer it back. But IF I'm sued that sounds like an easy way for a lawyer to pierce the corporate veil of my LLC, which negates the LLC in the first place. Which leaves me to think I just need a big umbrella policy. Right?

2. How do all these investors buy all these houses. I'm in a position financially to basically put 20% down on a new house every year, and that's my plan. But my problem is (1) how do I get more than 4 loans in my personal name and (2) IF I buy these properties under an LLC then how am I to cash flow if I can only get a 15yr MAX term (if I can even get that)and only putting 20% down? that leaves no room for cash flow. Please anybody help!!