All Forum Posts by: Sydney McCloud

@Sydney McCloud Here are some podcast episodes we have produced at BiggerPockets that may help with the understanding the key details you should consider. Then you know who and what to ask locally.

For LLCs, We had lawyer Brian Bradley on the Rookie Podcast episode 105 LLCs for Rental Properties & "Layering" Legal Protection and Rookie episode 106 Asset Protection for Rookies: 7 Wealth-Saving Answers from an Expert. And updated bit on the Real Estate show Ep. 838 How to Not (Accidentally) Lose Your Portfolio to Lawsuits.

Also, for estate planning Money Podcast 532 Building Generational Wealth? Don’t Lose It with This ONE Critical Mistake and Money Podcast 533 What Even We Didn’t Know About “Protecting” Our Wealth with Jenny Rozelle

Newer laws have said you should get your LLC's in whatever state you are investing in due to the legal protections. LLCs just protect your other assets (if any) from being sued. From my understanding - Nevada, WY, Delaware will not offer you the benefits that you may have heard. Legally, (I'm sharing what I have heard, not a lawyer) you will be liable in the state of the property so other state LLCs will not help.

Hopefully this is helpful! Good luck and if you find out anything cool, please share!

Soo helpful! Def will look into these podcasts :)

0 Votes

Quote from @Benjamin Aaker:

Hi Sydney,

Congratulations on buying your second investment. If you are setting it up as a single-member LLC (without partners), then LegalZoom or a local attorney would be a good start. I agree with others that you won't get much benefit from being in-state. The other areas give a little more privacy protections but for local investments, that won't be a huge benefit.

I haven’t bought yet. I want to form my LLC structure properly first before buying my 2nd one hopefully before end of year. If I want to scale my real estate investment business long term (ideally buy a property every year), I want to do everything correctly now for less of a headache down the line. I have heard creating a holding company first then having my llcs under that is the best method.

1 Vote

Quote from @Bradley Buxton:

@Sydney McCloud

You can speak with a lawyer for a few minutes and they will tell you the risks / pros cons Here is who I recommend to our investor clients around Reno Tahoe. https://sutlaw.com/

They can advise you and will also setup the LLC in Nevada and WY if that is what you need.

Thanks!!

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Quote from @Randy Rodenhouse:

I would not form an LLC in the states that you mentioned, but in the state that you live in. There is many unnecessary structures that have a lot of cost associated with them. If you do not live in one of those three states you mentioned don't form LLC there. Many people get so focused on asset protection and have nothing to protect. I would just form a simple LLC in your state (possibly using LegalZoom or a local attorney) and you can always make it more grandiose later on. Just my 2 cents.

Thank you for your rec. I currently live in NJ so I’m not sure if I’m getting the best for my buck here.

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Thank you! This is an older property that was rehabbed when I purchased. Since LT tenants currently live there, there’s not much I can do right now but just advise to put some rugs down right? Because if I had another lay of Sheetrock that’s a whole project where the tenant shouldn’t be living there while the floors are being updated. It’s particularly loud for the basement tenant.

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Philadelphia, Pennsylvania

Hello,

I am looking to buy my second property this year and want to put it under an LLC. Any recs on companies that help form LLC formation, business structure and estate planning services? I want to make sure I form it correctly to avoid any headaches in the long term. I am also a fairly new investor so looking into forming the LLC in Wyoming, Nevada or Delaware.

3 Votes

Tenant has notified me that the noise coming from the floors above is loud. I know that is probably just a normal and natural part of apartment living, but there is very squeaky floorboards right above the tenants bedroom, causing her sleep to be interrupted very early in the morning when my tenants has to wake up for work. particularly bad areas. Any solution for minor sound proofing fixes that may be able to work? This has been happening for a couple of months now.

0 Votes

Philadelphia, Pennsylvania

All Forum Posts by: Sydney McCloud

Sydney McCloud has started 2 posts and replied 7 times.

Post: Looking for LLC Formation, Business Structure, Estate Planning Services

Post: Looking for LLC Formation, Business Structure, Estate Planning Services

Post: Looking for LLC Formation, Business Structure, Estate Planning Services

Post: Looking for LLC Formation, Business Structure, Estate Planning Services

Post: Bleeding sound between floors

Post: Looking for LLC Formation, Business Structure, Estate Planning Services

Post: Bleeding sound between floors