All Forum Posts by: Shaun R.

Understood.  I appreciate all the replies and help.  It is always helpful to get an idea of what others in the industry are seeing and experiencing.  Thank you.

What do you typically see on Leases in your experience?  The Owner listed as the contracting party?  Then a clause or section of the Lease which delegates/appoints the management company as the authorized agent for the Owner?  

Perhaps this is more of a legal question.  I definitely would like for my Management Co. to be the one collecting rents and conducting the day to day management.  This entity (the Management Co) will also be the one most likely interacting with Tenants on a regular basis as well.  Should it then be the named party on the Lease?  Or is the Owner required to be on the Lease?  

My partners and I own a few properties and have recently created a separate Management Co. to manage our properties.  Moving forward, do I have the Management Co., be the named party that enters into the agreement with the Tenant?  Or do I still list the Owner as the party entering into the contract with the Tenant?  

This question may require an attorney's expertise.  I am transferring two (2) properties that are owned personally by me into LLCs which are controlled/owned by me.  I have heard this is most often done via a QCD, but also have had people recommend that I do it via a General Warranty Deed.  Which is the correct way to do it?  Is one method of transfer preferable to another?  Is there anything which would prevent me from transferring via a General Warranty Deed?

I appreciate the feedback from everyone. 

I have approx 10 rental units that I and my partners manage ourselves. I have read and seen Asset Protection & Estate Planning attorneys discussing how to create a Property Management company to help run and shield your investment properties. Some of the information that I have seen recommends creating a separate C-Corp Property Management company which then executes a Master Lease agreement with the underlying properties held by LLCs. I do not fully understand this strategy. What are the advantages of this structure? Why create a C-Corp as opposed to a LLC for the Property Management Co.? Any help or advice would be greatly appreciated.

Perhaps this is a thread better suited to the "legal" section of the Forums.  I will post there to see if I can get a response. 

I have approx 10 rental units that I and my partners manage ourselves. I have read and seen information online discussing how to create a Property Management company to help run and shield your investment properties. Some of the information that I have seen recommends creating a separate C-Corp Property Management company which then executes a Master Lease agreement with the underlying properties held by LLCs.  I do not fully understand this strategy. What are the advantages of this structure? Why create a C-Corp as opposed to a LLC for the Property Management Co.? Any help or advice would be greatly appreciated.

It seems there may have been some problem in the uploading of those videos so here is the url, so you can copy and paste them. 

1. How to Structure Your LLCs for Real Estate: https://www.youtube.com/watch?v=XdSp5GXbiE4

2. Due on Sale Clause:  https://www.youtube.com/watch?v=p8yzjkSQoAo

The 2nd video is shorter and has updated info on the dreaded "Due on Sale" clause in your mortgage.  Basically, new Fannie & Freddie guidelines allow for transfer of title into LLCs without problem.  However, if you do not have a conventional loan, it is not so simple.  Overall, Dave E's approach is the safest bet.  You should call your mortgage company and get their approval. It shouldn't be too difficult - especially after you go through these two videos.