All Forum Posts by: Phil M.

The first thing a professor teaches in the most basic of accounting courses is that a sole proprietor is fully liable for the asset in which her of she possess.

LLC is usually the best idea, because it has the ease of formation and liability coverage of a corporation, but the tax benefits of a proprietorship. Its considered the hybrid form of a business model.

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Go through county property records and the name of the bank or financial institution will come up as the principal owner.

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Banks will always ask for the person or entity making the offer to have the POF. Whether that be you, your llc, or your rehabber, the POF should be in the name of whichever person/entity is making the offer, that includes a bank statement.

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We really can't wait anymore, we're filing the articles of organization tomorrow.

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Some other questions include:

Will it be possible for me to form in a different county with less expensive publication requirements?

Could I still do business and have our principal office in Richmond county while filing in a different county (legally)?

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Originally posted by Curt Davis:

I myself found a REO foreclosure that I wanted to buy. It was listed for $200K. I qualified for $255K. The lender told me that the repairs could not go over the $55k mark. The home had a market value of about $290k.

Not sure this offers you much help.

$290k value after repairs?

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Originally posted by Lawrence Moss:

I am on my first deal, I see a reo 3 bed /2bath in a great neighborhood for $6000. I know the house would sell quick for $50000,I will sell for $17000 to an investor I say wow. But I have no money. Is there a legal way of getting around "proof of funds" ? And how does that work with "double closeings"?

Be positive on the repair costs AND the ARV..

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i spoke to a private lender in manhattan on january 16th and he said he would lend me a $250,000 to fund a deal at 12% with 4 points up front. The tricky thing is to try to get them to defer all payments until the deal is completed, as I dont have $10,000 to pay up front.

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Originally posted by Mark Claire:

Originally posted by Phil Mondiello:

So my partners and I have decided to start the formation of an LLC so that we have a business entity to protect our assets.

I understand that the Articles of Formation are a few hundred dollars, but I've spoken to a few other investors and most of them said it would cost about $3,000 to form an LLC. We would preforably want to formate in Richmond county, although I hear of other investors formating out of state, however I don't know the advantages of that. My question is how much would it cost in total? Is most of that cost attorney fees? Would it be significantly less expensive if I used legalzoom.com?

I just formed my First LLC in the great state of NY completely by myself, without attorney. I can't remember the exact about of the fees. Total I spent less than 500 including proof of publication! Why don't you just register it in a different county with cheaper rates? All the instructions you need are on the NY Dept. of State website.

Which county did you register it in? The fees I can see for richmond county go as follows:

$200 filing fee for articles of organization
$50 filing fee for certificate of publication
$200+ for staten island advance publication
$720+ for new york law journal publication
$1170 total atleast

$500 would be a great price comparably..however are there any annual fees on the LLC?

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All Forum Posts by: Phil M.

Phil M. has started 8 posts and replied 80 times.

Post: Owner occupant (203k clarification)??

Post: Meeting with an Accountant Tomorrow

Post: Can you find out which bank owns a house?

Post: REO offer - bank statement

Post: LLC formation in NYS

Post: LLC formation in NYS

Post: Financing a REO with 203k or convention renovation

Post: How to buy reo with no money down

Post: How much to pay private lenders?

Post: LLC formation in NYS