All Forum Posts by: Pete Wolven

 Hi Pete! Great question, my agent at the time was very new, and a friend of a friend. Instead of recommendations and professional advice from her I found myself with more questions than answers often times, and her newness and lack of confidence left me feeling like I couldn't trust her.

I think you're already 4 steps ahead of her as you're here asking the questions and are engaged on the BP forums which in my opinion, besides having a great broker with seasoned agents to learn from in person, is the MOST important thing. Your clients will be coming to you for your expertise on what is likely their biggest asset and investment of their lives and keeping yourself up to date on the news and learning from others experiences is invaluable!

I would also recommend all three of David's BiggerPockets books for agents, Sold, Skill, Scale. Tremendous insight into how to be a great agent that adds value to your clients. Here's the link to get Sold, the first of the series https://store.biggerpockets.com/products/sold-every-real-est...

My #1 thing is I would have chosen a different agent! Otherwise I still own my first property and still love having it, maybe because it's a bit nostalgic

 That sounds like a great plan to me. You will eventually want your nonpassive income to be flown through an S corp so you can lower the amount you pay into self employment tax. That said, there is a break even point to determine that and I do not know your financial situation now. But, assuming this is your main source of income, generally, I like S corp here. 

Why would the landlord not want to be the managing member/ sole member of the management company and just take its earnings back onto his 1040 directly without passing them through to another shell company?

If the landlord draws a lawsuit while acting under the cover of the management company llc, wouldn't he or she prefer not to have privity with the llc that holds the title to the properties?

Such as in a slip and fall suit, or a broken stair tread lawsuit.

@Adam Burrows the idea here is to create privity between the investment assets and third parties. As such, third parties (lenders, brokers, tenants etc.) should sign contracts with the Management Company and not the Investment Entity to add an extra layer of protection for the Investment Entity against any lawsuits arising from those contracts. For these reasons (and a few more) we typically don't recommend creating a Management Company as a child series of the Investment Entity. Happy to discuss further - feel free to reach out. 

That's how I started - renting out a spare bedroom to a roommate and I still do that because once I learned I didn't have to pay my whole mortgage it was hard to imagine paying it all myself again, haha! Some people don't like having others around but I've found I really don't mind it if I choose the right person.  

Welcome Pete to the BP community! I'm curious, have you identified a strategy for your future rental? BRRR, short term rental, mid term, long term, house hack, etc???