All Forum Posts by: Michael Shepherd

Thanks Michael 

Hello,

I am currently in need of renewing my insurance for two rental properties I own in Detroit, MI. Since last year I have transferred property titles of my rentals to my LLC. I understand I need to transfer my insurance to the LLC as well. Looking for a broker to help me find the best insurance fit. Please inbox me and we can connect.

Thanks

Yes, I'm aware. Thank you for the heads up. 

Do you invest out of state? Does what I mentioned above seem correct? 

Hello, 

I'm an out of state investor who lives in CA and invests in MI. My current entity structure is that I have a WY LLC as my Mother company and a MI LLC as my real estate holding holding company in MI. However I have yet to transfer my properties over to the MI LLC because there was a few things I was unsure on.

Firstly, How should rent be collected in the entity structure? I'm under the interpretation that rent should be collected by my MI LLC, then paid to my WY LLC, and then deposited to my personal bank account. Is this correct?

Secondly, I currently have a bank account for both of my LLCs at the same bank in MI. Is this correct, or should I have a WY bank account for my WY LLC? I'm worried about getting double taxed.

Thirdly, The business who set up my LLCs are telling me I do not need a foreign entity for my WY LLC in MI because "The subsidiaries being in Michigan are considered disregarded entities. Because they are owned by a WY entity, the taxes flow to the WY entity first, disregarding taxes from the subs. WY does not have state income tax as it flows through to your personals." - Is this correct because I've heard other things?

Thanks for any and all feedback :D 

 Thanks for the advice

 This is a great resource you wrote. Thank you!

 Yes I've come to learn that most institutions won't lend to anything under 75k. Thanks for the info. I have pivoted my strategy since realizing this on this property. I would still love to connect on future deals if you lend Detroit. Thanks. 

Hello my name is Michael Shepherd and I am an investor in the Detroit area. I have currently flipped 3 properties and I am looking for financing for my next fix/flip project. I would love to build a long term relationship to build both our wealth. I plan on going under contract with a property today that I am looking for funding for. Looking for full purchase and rehab funding or just rehab. Would love to also speak about any other lending options you might.

Purchase Price :35k

Renovation: ~45k (Final Scope Today)

ARV / Sale Price: 125k - 165k

I can also Refinance to exit as well. I have a full time W2 Job and I never borrow what I can't pay off with my W2 job. I plan on completing multiple projects before the end of this year. I have proof of funds. 

Thanks

I am an out of state investor from CA investing in MI. I am currently setting up bank accounts for my first two LLCs ... the parent company and the child company to hold the properties in. The bank accounts need an address to send all paperwork relating to the accounts. If I use my personal address for the bank account's address of my LLCs, will I be piecing my veil of liability? Or am I good to open LLC Bank accounts using my own personal address to send paperwork. Please advice!

This is called Delayed Financing and small local banks will do it. I just did it with a Duplex.