All Forum Posts by: Skyler Holloway

I'm starting a 2-person LLC for buy and hold investing. I have a template LLC agreement, but would really like to see/add wording that's real estate specific. Such as; how/when to sell properties, when to use a property manager, how long to hold properties, how each person is required to contribute, etc.

Hm- thanks for the input @David M.. It sounds to me like S-Corp isn't a consideration in your mind, but instead the decision point is between an LLC or none at all. Here's my reasoning for an LLC;

1. Asset Protection. Both members have other investments we'd like to protect (especially the liability of having tenants in a litigious state). 

2. Division of Ownership. Since there are two of us, we'd like to have an entity to divide ownership (we both own a property or two separately as individuals). Further, Articles of Incorporation can serve as the legal agreement between us for how to handle unforeseen life events or circumstances. 

Thoughts?

For two partners looking to BRRR into long-term business (5+ years) in Nevada, which option is best?

From what I can tell, LLC has lower annual fees, same liability protection, and a bit more flexibility during management. S-Corp has some extraneous benefits (issued shares, survivability, separate entity), and the option to be taxed pass-through or not (so, no benefit vs an LLC on taxation).

It also appears that we can convert from an LLC to a S-Corp in later years.

If the plan is to build a portfolio of properties over time without flipping (IE, not focusing on immediate income that would be subject to Social Security and Medicare Taxes), should we just start as an LLC? Or, am I missing a compelling reason why S-Corp makes more sense now.

Any input would be great! :-) 

Thank you @Patrick Liska. 

When interviewing a potential new property manager, what was your strategy? Any suggested questions to ask?

My partners and I have owned a 20-unit apartment complex for 8 months now and the property manager has consistently underperformed; monthly reports are rarely complete/accurate, vacant units take weeks to be listed for rent after constant nagging, communication is non-existent, random fees pop up on statements (NOT agreed to in contract), etc. We've decided to move-on from this property manager and have 3 upcoming interviews for prospective replacements. 

What advice do you have for making the transition as smooth as possible? Based on my experience thus far I don't foresee the incumbent being helpful at all. I fear them withholding random fees mentioned above and in general failing to hand-off any leases/notices/payments to the incoming property manager. 

What are the key considerations I should be looking at? Do you have any disaster stories to share?

Thanks for organizing @Account Closed. Where can we advertise this to make sure we get ~20 people to join? 

I’m looking forward to it! Thanks for organizing. 

Does anyone know of plans for an April meet-up? Any preference on where we should hold it? I'm looking forward to it. 

Awesome job @Omid A.! Out of the $65k invested, how do you feel you could have lowered that amount? Did you overpay for any services or have trouble finding certain trades to complete the work? 

Obviously you did great, but i'm looking for some extra learning points! :) 

Skyler

In true Bigger Pockets spirit, please share your biggest real estate regret and best pearls of wisdom! 

- Regret: Help others not make the same mistake. 

- Pearl of Wisdom: Pass along your best concise advise!

Personally, I'm just 27, so I'd like to soak up all the knowledge and experience that I can!  :)