All Forum Posts by: Mike S.

@Brian Davis

As a general rule you would want an LLC in the state where the property is located as it will need situs in that state to be able to act in court,

As some state have very low outside liability protection on their LLC it is recommended to have these LLC owned by a holding LLC in a good asset protection state. WY is often recommended for a holding LLC as they have excellent statutes, anonymity and reasonable cost.

But like all general rules there are a lot of exceptions that may be related to your specific situation.

I would recommend that you spend some time watching the YouTube channel of Clint Coons. You will find a treasure chest of excellent advices on how to structure your LLCs for real estate investors.

After getting informed, you should then consult with a real estate, asset protection and tax attorney(s) to discuss your specifics.

Even if he doesn't know what the exact life insurance payout will be, he should have a pretty good idea of an approximate amount. Life insurance are usually very clear on the death benefit amount on all of their statements or policy documents depending on the type of insurance. Also payout after death are usually fast (depending on the carrier it could be as short as a week up to 60 days. I believe that the industry average is below 20 days).

The question is what will he be doing with the money from the settlement? Is he getting a lump sum that he will use to spend recklessly or is he converting it to an annuity giving him a monthly payment thereafter? Some people have a hard time managing their money, and a large lump sum will burn a hole in their pocket quickly.

I have had tenants that were not meeting the W2 income requirement, but had large savings and/or brokerage accounts that were quite sufficient to cover the rent, and it was also showing good money management skills.

Originally posted by @Matt M.:

And no need for the LLC. We got a million $ umbrella for a few dollars a month.

You don't need an umbrella policy.
You don't need an LLC.
None of them are required for real estate investment.

However both are highly recommended. They both are protecting you differently. One is absolutely not exclusive to the other.
The choice to use them is based on your risk tolerance and cost/reward ratio. I personally use both as the cost of an LLC and even the higher cost of lending to an LLC is worth many times the amount of rewards that I get from them.
For everyone making broad statements that one doesn't need an LLC, I would strongly suggest that you get more informed about the limitations of insurance and how a properly set up LLC (or sets of LLCs) is protecting you and your assets. Because when you will seriously learn about them (and not by only browsing this forum for generic information), you will definitely not make that kind of broad statements anymore. LLCs are excellent asset protection tools that have their place.

Now YOU can argue that in YOUR specific situation, YOU decided that you can live with the risks of using only an umbrella policy. Someone else in the same exact situation may even decide not to use an umbrella policy at all. But some of us will decide that an LLC is needed in the same circumstances. However, at not time can I tell YOU what YOU need. So learn about all the pro and cons of all these tools, and consult with an asset protection, real estate savvy, attorney that will guide and advise you on the proper setup for your situation.

@Ryan Williamson

You will probably not get a conventional loan for an LLC.

But you may find a commercial loan with a local bank.

You will definitely need a personal guarantee initially until your LLC can show enough history.

Start building relationship with your local lenders. It will become easier after you get a few transactions with them and they become more confident in your ability to repay.

In Florida I am getting 18% on my tax certificates and sometimes way higher than that when the redemption is very fast as I get the 5% net minimum in a few days that would be an equivalent to a few 100% per year equivalent.

But they are more and more difficult to get by as there are too many players in this arena who are bidding down to 0% hopping to get the 5% minimum pay. My tax certificate portfolio has been reduced by over 75% compared to 5 years ago due to lack of supplies.

First of all they are not ringless.

On m’y phone i have at least one ring from the first call that is placed when the second simultaneous call goes to voicemail.

Not only it is intrusive but also the message stating “I tried to reach you but I can’t and leave you a voicemail instead” is a blatant lie to your face.

Last my number is on a do not call list and these stupid companies don’t even check the database first.

For all these reasons, I proves to me that these companies are liars and violating laws, so why in hell do you believe that I want to have any business with such bad actors?

Not only do I block their number and report it to anti spam databases, but I also usually file a complaint for federal and state violation of do not call list.

@Jose Salazar

Unfortunately there are a lot of websites and email servers that are rejecting non US IP address. That is poor IT security measure to make them supposedly secure against cyber attack. I am worried about the quality of their IT department that can even suggest such a stupid idea.

Just use a VPN to log on these site and you will have no problem.

I don’t believe you can trespass someone who is a guest of a resident.

However as a witness of a domestic violence crime, you should have call the police and let them arrest the boyfriend. He would have then been issued a no contact order until the trial. If he shows up during the no contact order then you can call the police again to have him arrested, even if he was invited here by the protected party.

However it is clear by your post that the case will be drop at trial due to non cooperative victim. At that time the no contact order would be dropped, but that should give you some quiet time before your 30 days notice expiration.

I believe the name is protected for 10 years and someone else can not create a new LLC with the same name during that time.

As a tenant now, if you don't pay your rent they can't evict you until they reactivate the LLC. If they don't and file an eviction, just drag it to court as long as you can and then tell the judge that the LLC is not active and the whole eviction process will be voided and would have to start again from the beginning after they reinstate the LLC.

I would be more concerned about a liability insurance claim. First of the owner was careless enough to let his LLC lapse, who knows if the insurances were renewed. Even if they were, would the insurer deny the claim as the insured is not in good standing?

A scammer can also reinstate the LLC putting himself falsely in charge of it on Sunbiz and sell the property. It will pass title inspection and closing. But the real owner would be able to prove fraud and regain the property later on.

The defrauded buyer will have his title insurance cover the purchase price and the scammer will face multiple felonies charges if he is found.

Also, to best optimize and lower the fee of your permanent life insurance you want to have five to seven years of equal premium payments into the policy. If you put a lump sum only in year one, you either loose many of the tax advantages of the life insurance, or your money will be "parked" in a temporary account to be transferred into the life insurance over a period of five to seven years, or the death benefit payed for will be way to high and your cash value will be extremely reduced.