All Forum Posts by: Phil M.

There arn't any publication requirements for an S Corp, correct? I mean, for real estate investment purposes, what is the most efficient and cost effective? From what I understand an LLC and an S Corp have the same amount of limited liability and same pass-through taxation. Are there any disadvantages to the S Corp? What are the annual fees for both? Is one more expensive than the other?

Okay, so I've heard that in New York City tax liens may not be sold to the general public. But now, I have an LLC, so I was wondering if I can purchase them now.

I recently read this: "The City of New York only sells liens to authorized private collection agencies, not to the general public."

In which case, is my LLC eligble? How do I become an authorized collection agency?

Originally posted by Jason P:

1) Is rent out a room you live in considered to be an investment property
2) how to find reo House before puting into MLS?

1) I wouldn't consider it an 'investment property'

2) Everyone worries about finding REOs before they hit the MLS, but what you should really be concerned about is building relationships with the REO listing agents in the area. That way, if there is a good deal coming around they will let you know first. Thats what I've done and I have text messages and voicemails and emails from agents all the time now about new deals hitting the market.

I've seen the same exact thing recently. Occupants simply won't leave, and the bank (for whatever reason) isn't considering conviction. However, the price was significantly under fair value, but the interior could be in ruins.

Best chance is to politely knock on the door and do some bargaining with the occupants if you really want to purchase the property.

Call the listing agent and ask.

I got a list of REOs from an agent 2 weeks ago, she said they were all vacant. So we went to one of them, snooped around, and a woman came out with a knife threatening us! We got back in the car and got outta there. Turns out the bank is selling it occupied with violent occupants..

I printed the articles of organization..but it only requires the person whose filing the articles name...what about the other members? Will they send us something else to fill out? It says the county clerk determines what newpapers to publicate in, but how do I find out which newspapers or contact the county clerk (Richmond County)?

right i heard about the publication requirement. you sure its two newspapers? I would put it in the staten island advance, don't know about the other.

Also, I hear about a lot of people forming LLCs in Nevada or Delaware because of their limited taxation and business friendly laws and courts. Would this work for me and how would I go about forming in another state (even if I decide to do all my business in New York)?

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?