All Forum Posts by: Kumar Paj

Other thing I tend to agree with is the fact that 'it is all about mindset'....and 'you don't know what you don't know'....the guy who we interviewed with was very genuine (or might be his selling technique..who knows...) an he advised us upfront that you want to do it only if you are committed to use it. If you won't be able to use all the resources, you would hate this program and regret it.

Important topics I learned about are

- How to use SDIRA/401K for Real Estate investment

- Asset protection (especially, Series LLC)

- Working with private money lenders and the process/documentation 

Obviously he just touched these subjects and I fully utilized all breaks by asking lots of follow up questions which helped me have better understanding. Lots of materials available here on BP so I will dig into it further.

Thanks everyone for your inputs...

Just completed 3-days workshop by FortuneBuilders.....It was not too bad since I went with very reasonable expectations and open mind.....definitely learn few things (especially, few tips on Asset Protection and Private Money Lenders were useful...at least for me) so no regrets..... of course it was an opportunity for networking and got in contact with two like minded investors.....

Dale, we are also in process to file an appeal for Property Tax. We missed the date last year but will do it this time for sure. We are working with an experienced attorney who charges X% of total amount you save. You can also do it by yourself (download the form from county website and simply follow the steps) but I prefer to work with an attorney since it is not super expensive and chances of success are much higher....(saves my time too)..

Thanks Thomas and Kathy!

Kathy, What I meant was, in order to be a listing agent, you need to be a licensed RE Agent... not about California  though...

this gives me good intro and direction for further digging....

Thomas.. Not sure what you mean by LLC's 'EIN"

any thoughts on Series LLC?

Thanks Kathy! I just ordered these books and look forward to reading it.

I never thought of Limited Partnership but based on your note, I will look into it.

With regard to your LLC which manages (I am assuming that it includes listing on MLS, and renting/signing lease etc.) your properties, how do you handle the licensing requirements? Is your LLC a brokerage firm/Licensed RE Agent???

I am Licensed RE Agent with S Corp so I was thinking to have my S Corp to manage the properties and have a new LLC/Limited Partnership to own the properties.

Thoughts????

I am a licensed RE Agent + Investor with few rental properties. I set up S corp for my RE Agent practice and therefore when I rent my own property, I write a commission check to my brokerage firm and he writes a check on my S Corp’s name (mostly I rent it by myself to Sec 8 and without coop broker on the other side). I think, this is helping me save same tax amount since it becomes my individual expense and my Corp’s income.

I am also considering to use my S Corp for property management/operating company. Would this be a good idea? Would this help me from liability perspective? Would this help me from tax perspective?

Would appreciate inputs from experienced RE Agents/Brokers, CPAs and investors.

After listening to Asset Protection podcast and having a sizable portfolio, I started believing that now it is the time to move on with systematic approach and long term strategy. As a part of long term strategy, I am considering to put all my rental properties under LLC. Here are my specific questions and I would appreciate any feedback and inputs from experienced investors, attorneys and RE Agents.

- It is generally believed (also recommended by Scott Smith on BP Podcast 109) that it is a good idea to set up 3 LLC's; One an asset holding company for flips, another for buy-and-holds, and the third one is the operating company. I get the reasoning behind this but the key question is at what stage of your business cycle. Obviously it doesn't make sense to set up 3 LLC's if I've 2-3 rental properties and I do only 1-2 flips per year. However, is there any rule of thumb in terms of number of properties or portfolio size in $$ when an investor should seriously consider this (3 LLC's) strategy???

- How difficult it and costly it is to operate/maintain LLCs?

- How about Series LLC? Can I have a Series LLC instead of 3 LLC's per my note above? Can someone share some more info about this?

- As of now, my rental properties are on my and my wife's name (3 with mortgage and 4 cash purchase). If I set up a new LLC (assuming that is the right strategy), How do I transfer these properties to LLCs? What about mortgages?

- What about insurance? What happens to my current insurance?

- What about future purchases? How easy or difficult it is to get a commercial loan for future purchase?

I think, I already asked too many questions….Would appreciate inputs from experienced investors, Attorneys, CPAs….

Hi Julie,

I was also thinking the same from Buyers as well as Seller's perspective.

did you create that list? If yes, would you mind sharing it?

thanks,

It depends on bank but I would say at least 2-3 months....

Banks used to list those at way below market value (I am talking about 2010-13) but now banks are getting smarter at RE business too. In many cases, they rehab the property and manage to sale it at very good price, at/above fair market value. Gone are those days when we used to get REOs at very attractive price..... I don't find MLS is a good source to acquire investment properties anymore.....

Good luck and happy investing...