All Forum Posts by: Steve Morris

LLCs are meant to limit recourse against assets held by LLC to just those assets. Any income into the LLC gets distributed according to the operating agreement.

As far a personal LLC, I guess, but what assets do you have if you're only getting income? I have our LLCs pay our S-Corp which has its own advantages for small groups of "employees" (like wife/myself).

AM NOT A LAWYER.  DO NOT USE THIS INFO IN RELIANCE TO MAKE A DECISION!!!

His/her Porsches would solve a lot of problems.

Otherwise, you need to be more concise on what your investment goals are.

What assets would you put in the LLC? The main purpose of a LLC is to limit recourse against an asset in the LLC to only the assets in the LLC.

Any income would be passed thru to members based on how you draft the operating agreement.  As noted, friendships "change" once they become business relationships - So make sure the OA is clear and understood by all.  I'd hire an atty.

You mean listings that brokers hide to make sure they get both sides?  Good luck.

Might help to get a LoopNet or Crexi account for commercial stuff.

Well, that would be wrong. I'm in OR and do a lot of biz with a national title comp, so they give me a sign-on. I can see Cali property owners as recorded. That doesn't mean you don't have to wade thru looking whose in the LLC or getting beyond an agent recorded.

Also, I know each county has a prop tax portal where you can search by address and some of them show who the prop tax is mailed to.

Just because they may charge for it doesn't mean its not available.  Just means its Cali govt looking for a slice.

"I see a lot of distressed properties"

I think they call that the rustic farmstead look there in Napa.

OOC - Why you instead of just listing it for $235K?  Sounds like you got a decent deal especially on a 0% loan - For life?

Palm Springs that cheap?  I may buy a snowbird place there - Oh snap, forgot - It's in Cali :)

Ok, so buyer and seller see the same settlement statement as far as price paid?  Seems kinda cumbersome otherwise.

10% CapEx seems kinda high UNLESS you've got some known stuff coming up (like siding windows roofs) and it should be offset by a RESERVES number on most calcs. Reserves are usually like $250/unit/year

10% maint is also high (especially in light of 10% CapEx). However, it's a profit center for PMs, so I'd do a forensic on that to see if real or not. New units maint should be very low. 70s vintage place - $500-$750/unit/year?

10% Prop Mgmt - If its a SFR, then 12%. If >5 units, I'd be more like 8%. If you have an onsite then min of 30 units or about 3% (assuming they get free rent). SO for 2-4 units, get a couple of quotes.

5% vacancy is about right, but with collections now, economic vacancy is higher.

Think I'd just get a real rent roll and then figure expenses = 45% of gross or about $5K-$6K/unit/year.  Then you can put in the mortgage to get a CFBT which is what I'd use to sort stuff out (Cash-cash return).

Get another phone number - Most phones are dual SIMs now.  They usually use them for overseas travel and a local number there, but ask your wireless place.

Google Voice is OK, but it comes in to your main number as a forward and I think having diff numbers is better?