All Forum Posts by: Roshan K.

You would have to still do 20-25% of the loan anyways not the appraisal unless this is a REFI. In which case a BRRRR type strategy would be in place to pay cash and refi it back out after 6-12 months at 70-80% of the value of the home.

How is an appraisal $5k More than purchase causing issues? Your loan is based on your purchase price no matter how much higher your appraisal may be.
Typically appraisers will appraise at or just above contract price when it is worth more.

Why do you assume that Its wrong?  why assume it’s worth what it was four years ago ? Sometimes real estate doesn’t appreciate sometimes it’s the opposite despite what people on here always say . you could find your own comps and try to make a case that it should be higher . Doesn’t look like you have much meat on the bone in this deal to even be a little risky 

Especially in your profession, where you are facing the public. The last thing you need is crazy tenants lurking around your practice! I have a friend with rentals and he uses his personal name for business and lets tenants drop off rent at his $600K house. He had a crazy tenant that started driving by his house really slow. That is exactly why you never give tenants your name or address. Of course a resourceful tenant could find this information, but 99% have no idea where to look. The goal of any protection is to make it harder for people to find you. Nothing is fool proof, but why make it easier.

This same friend never locks his car doors. He said to me, "if they want to get in, they will find a way". I don't follow the logic. Of course someone could smash a window, but most people are lazy and will just look for the easy target. I am not an easy target.

@Brandon Handel part of the benefit of an LLC is one extra layer to mask the business from the owner. Let's say the tenant is renting from Brandon Handel LLC and you are dealing with them, signing documents Brandon Handel. It is pretty obvious you are the owner. It makes you more of a target. Let's say your company is named Oak Street LLC, then tenants could easily think you are just an employee. Any competent attorney could track down the owner of any LLC regardless of the name so it won't totally separate you from the business.

As far as piercing the veil, that happens if you are mixing personal and business. Name should really have nothing to do with it. 

Very often when people name a business after themselves it is for their own narcissistic reasons or due to lack of creativity. Personally I would pick the most generic names possible for your LLC. Your business can carry a different name than your LLC. For example you may be doing business as "Ideal Property Solutions" but your business manages five different LLC, Oak Street LLC, Sun Tower LLC, Johnson LLC, My House LLC and Road 1 LLC. Notice how all the names are very different, so it makes it even easier to keep separation between the individual properties.

LLC is for legal protection, not a marketing purposes. Pick LLC names that are very common and not related to your main business name. No reason to make it any easier than necessary for someone to trace all the businesses back to you.