All Forum Posts by: Tom Sylvester

I would like to get our LLC established before the end of the month. We purchased our first duplex tis past December, and I would like to create the LLC and quit claim the property into the LLC asap.

I just need to have a meeting with my partner to go over the details of the LLC.

wiessman - Co mingling funds means mixing your funds from different ventures together. For example, if you had an LLC but did not setup a separate checking account for the LLC, but instead used your personal checking account, that would be considered co mingling funds. The reason is that you have your LLC (business) funds mixed with your personal funds.

If you are transferring money from your LLC account to your personal account, you are simply "paying" yourself and not co mingling funds.

And Mike - Thanks for your suggestions on naming. I know a lot of people struggle with that topic.

I would also recommend MikeOH's business plan (which is in his book). I used that as a basis when creating mine.

Just about every investor in this area either has or still is purchasing a property in their name, and then quit claiming the deed to the LLC. None of them have ever triggered the Due On Sale clause.

As nationwidepi stated, the LLC is just one layer of protection. And the fact that you said there is no protection from it means that you do not really understand what an LLC is is how it is used.

To answer your question, I have not done much with land trusts, but am going to a course in a few weeks that deals with them. I believe you can use one trust, since the beneficiary/trustee if the LLC (which you both have a 50/50 interest). This sounds like a good way to go.

A DBA is northing more than allowing yourself to be called something else. So instead of "doing business as" John doe, you would be "doing business as" whatever your company is. Either way, you will be taxed the same (personally). You would need to actually create some sort of company (LLC, S-Corp, C-Corp, etc) to change how you are taxed.

You can't advertise as another name if you do not have a company by that name.

One cheap suggestion would be to register a DBA - Doing Business As. It costs ~$30 and allows you to advertise as another name besides your own. I would not suggest using another name, unless you either have a company or a DBA.

I would say keep your current house rather than sell it to rent. You have a low rate and a short term. After selling, you wouldn't really be left with much. And do you really want to move your family out of your house to live in an apartment?

My only recommendation for seeling would be if you were going to buy a duplex. This would be much better than renting. Your tenants would pay part or all of your mortgage, plus you would get loan paydown and appreciation. Since your mortgage payment would drop significantly, you could save for your next home or more investing. then when you buy another house, you will have a duplex that you can rent out both sides off.

Unless the tenant agrees to such a request, I don't believe you can amend it. You signed a contract to rent the property to them for the term on the lease.

Congrats, I love hearing from other younger people who are involved in real estate. I am 23 as well.

When I was in college, a friend gave me a book called "The Automatic Millionaire". This book blew my mind and total opened my eyes to the world of investments. From this book I began saving money to invest and reading everything I could about investing. I was determined to buy my own home asap and to start saving for retirement asap. I purchased my first home6 months after I began working.

When I got my first job out of college, I put 6% into my 401k and began buying stocks each week. After I while I realized that I was not so good at buying stocks.

My father had 5 rentals and I saw the potential to make money, but every time I approached the subject with him he didn't take me serious or shrugged it off. I went to a free informational session for Rich Dad and was hooked. Once my eyes were opened to all of the opportunity that was out there, I began reading everything that I could. I closed on my first duplex this past December for $26,000. Since then we have completely renovated one of the units and raised the rent $100. We are in the process of refinancing the property, and plan to use that money to purchase another rental.

As the others have stated, try to save up some more cash before jumping in. During this time, learn as much as you can, and join your local reia. Start networking with successful investors and offer to work with them for free. This will allow you to see how things work in the real world.