All Forum Posts by: Nkrumah Morgan

I am not working with anyone as of yet... I will need some assistance in the area as my family is looking to move in the next couple of months... I will shoot you a dm for your contact info...

Hello all!

I am looking at starting short term rentals/vacation rentals in the Fort Walton Beach, FL area.  I am coming down to look at properties at the end of this month.  I am looking to do my first deal ever, so I gotta start doing my homework...  Just looking or some local investors to network with, ask questions and such...  I love to eat... so questions over meals is how I like to get down...  Please hit me up if you got time to take on a newbie investor...

Originally posted by @Nicolas Franckenfeld:

And as far as my LLC, should I instead register it in another state and make it a foreign LLC in my own state?

Again, I simply want to keep the true ownership of this place hidden from the tenants.  Any ideas?

Sounds like you need some expert counsel on business formation strategies.  If I understand things correctly, any anonymity benefits you receive from filing in another state is usually stripped as soon as you file for foreign corporation status.  Your state is more than likely going to want to know who the management is. With that said, there are millions of legal strategies you can put into place, just depends on how much you are willing to pay to keep your name out of it.  I know that Nevada and Wyoming have strong anonymity laws, the trick is to retain those benefits when you petition to do business in MO.

Thank you all for the replies. Ok, here is some clarification. I think that in my market, i am going to focus on buy and holds - primarily lease options/rental income. With my limited real estate investing experience... It seems as though that would be the best option for me at this point. I am looking to establish a solo 401k and rollover my IRAs to fund my startup. I planned on taking a salary sometime next year once the business can support it. From which I planned on defering/profit sharing back into my 401k. I have a solid full time gig to live off of, so the income from the real estate is not needed, and i would like to compound as much of the funds back into the business as I can. My number 1 goal is to eventually quit the full time job and go full time with real estate. I want the flexibility to bring in investors easily... Asset protection and minimizing taxes is very important as well. The corp/s-corp looks like the better decision to me for the main company. Now I do like the scalability of the Series LLC for individually holding the property in and using the main corp as the "property manager/financier." The LLCs would run real lean barely showing a profit.

I have also been looking for ways to fund my business, and have been looking at the solo 401k. From what I understand, you can roll over certain retirement funds. Set-up a custodial account with check writing privileges. Write your company a check for what ever amount of funds you wish to invest. You have successfully funded your business with a solo 401k, (to put it in the most simple of terms.) With that said, there are steps that must be taken to do it legally. For that, I would strongly suggest talking to an expert in such matters. I have found this website to be an excellent place to start. It is well organized, and easy to understand. With that said, I would still consult your CPA to make sure that it is an avenue that would be beneficial for your particular circumstance. The link provided goes straight to the "contributions" page from which the following information comes:

Now to be eligible to roll over a 401K, I think, you have to have ended your employment with that company. So the 401k that you are currently investing in at your job would be ineligible, but 401Ks from previous employers would work.

To me it sounds like a great way to fund a business venture, if you don't mind risking your current retirement assets to do so. I am 36 years old, so if my business fails, I still have some time to recoup those losses.

If you are rolling over a considerable amount of money into your solo, then asset protection is a definite must have to protect them. That is where your business structure comes into play. Make sure to get competent legal council regarding these matters.

I have been doing some research on business structure for real estate investors. I am still not sold on the LLC model. Maybe I am just not seeing the bigger picture. So my question is in a few words why do I want to form an LLC over a corp/s-corp?

Originally posted by Mehran Kamari:

Check out Tom Hopkins

People learning sales from all different industries learn from him. He started in selling real estate.

I must agree here... Tom Hopkins has some great sales training. I own his audio sales collection. I subscribe to car university, so I can listen to him while driving.

Joshua Dorkin thanks for the info. I have been doing it wrong the whole time... lol I think I got it now.

I noticed that you can mention someone in a post... Question, if it is not underlined does that specific person get notified? Is there a specific way to mention someone in a post?

@Carolina E thanks for the advice. I was able to find a couple different groups on Meetup. I forgot about them.

@Mehran Kamari thanks for the welcome and book list. I have a couple of those good reads already, and always looking to expand upon my library!

@Brian Schroeder I also received contact from Michael Herr here on this site. Nice to finally get something other than cross marketing from the REIA... Lol