All Forum Posts by: Mike Jones

@Cole Raiford

Can do that, just that some don’t like their names out there.

@Benjamin A Ersing

Have to personally guarantee the loan.

@David M.

Thank you. Yes It is similar to what am planning. Some people are adding a management llc to collect rent and pay bills. I don’t think I need that yet, but the idea is the same.

@Sylvia B.

Thanks, Sylvia. I only have 2 properties but with equity of about $350k that I will be taking out, hence the reason to want to structure with a holding llc so the cash can sit there until a make another move.

When forming the management llc, is the holding llc it member and owner?

How are the other LLCs with the properties related to the management llc? 

If one has only a holding llc and 1 property llc, can the property llc collect rent, pay bill then sends the rest of cash to holding llc?? Is the management llc really needed?

I get the idea, just trying to incorporate it into my setup, which is 1 holding llc, 1 property llc which house 2 properties.

Both holding and property llc have a separate bank account. I don’t collect security deposit. 

@Evan Polaski

Sorry I got lost here with management llc and acquisition.

Basically here how things will flow:

- Holding llc on top. Will be a Single member, manager managed.

- Property Llc, single member, member managed. The member is the holding llc.

Let say property llc has 2 rentals, and receive money every month. Those rents will be deposited to it account. Property llc will pay mortgage and all the bills. Any surplus will go to Holding llc.

Let say the holding llc has enough cash and want to buy a 3rd property and house it in a new llc.

Property llc #2 will be formed, single member, member managed. Holding llc being the member.

Contracts will go as fallow:

Property LLC#1

By: Holding LLC, Managing member

By: _______________

Mike Jones, Manager

Property LLC#2

By: Holding LLC, Managing Member

By:_________

Mike Jones, Manager

Manager Mike Jones can only write a contribution check to Holding llc. Then holding llc will move it to the property llc needing the money.

If property llc#2 decide to sale the property in it, the money will go to it bank account, then property llc#2 will write a check to Holding llc.

Etc.....

@David M. What about signing documents or contracts for the Mgt llc, do I sign them as the manager of the holding llc? How would that work? 

@David M.

Thats what I am also thinking. Mgt llc receive rent, pay bill then sends the rest of the cash (if any) to the holding llc.

Now Let say i want to buy another property, and need to make a contribution, do I write a check to Holding llc thn from there will be sent the Mgt llc for the purchase, or just write a check to Mgt llc. My understanding is that I personally do not have a direct connection with the Mgt llc. 

@David M. I will be forming in WY for the holding llc and MA for property llc.

@Evan Polaski That i the setup I am going for. What type of things should i specify in the operating agreement between the two llc? Just curious.

I will just make both of them single member llc and keep my brother out. WY llc will have the protection.

Sure, I am planning on separating myself from the entities, otherwise they are useless. I have been reading and learning about how to accomplish that.

One more question. With this setup, both llc will each have a bank account, the property llc will receive the rent, WHICH ONE will pay the bills?

I am learning everyday, and I truly thank you guys for your inputs. 

@Evan Polaski thanks man. I knew they would look at my credit and finances. I wanted to create the holding ll, mngt llc structure so that I can be as anonymous as possible but at the same time I don’t want to create a structure that will prevent me from getting loans. I believe they can still verify that I am the owner even if I structure it that way.

I got sue two times and had to settle on both occasions. They could see what i owned a property that had a lot equity and knew they were getting paid. That is the man reason to why I wanted to structure it that way. Otherwise I would just have a single llc and have my name out there.

Hopefully that makes sense and I am fully opened to other recommendations, and tricks.