All Forum Posts by: Account Closed

I'm sorry you are having these issues.

I can certainly understand the conservative approach they are taking with this.

However, and these are just my, non-lawyerly observations...

While there is little to no case law acknowledging an option as a form of equitable title, there is case law acknowledging an option as a negotiable asset. I think if push came to shove a court would agree an investor has a right to buy an option and to sell that option without the assistance of a broker.

Where many get into trouble, and this is where I think your investor friend has problems, is most investors advertise the property, which they don't own and not the option to buy the property, which they do own.

FWIW, I don't like how options are used most of the time. I like clean transactions that stand up to scrutiny. But, I do believe an investor can buy an option on a property giving them the right to buy the property at a set price and later sell that option to someone else as long as the contracts do not prohibit it. Done properly, only the final buyer is at the closing table because the option exchange has already happened.

Originally posted by Bob Hines:

Although you will need to check into if you need to do anything special to do business in IL as an outside company.

Your entity has to either be domiciled in the state you do business or registered with state as a foreign entity. Foreign in this case, meaning from another state because under our Constitution we are a Republic of States and each state is technically sovereign.

The costs to maintain a foreign entity registration is usually the same as a domiciled one.

I would never hold title in a foreign entity. If you are going to use an entity, make sure it is formed in that state where the property is located. Of course, I'm not a lawyer, so follow your lawyer's advice on this, they have the malpractice policy to cover you. I'm just telling you what I do.

Lee,

It isn't surprising. We do nothing to teach our young how to understand, much less manage, their financial affairs.

After all, these people you are now unimpressed with were probably chanting how real estate could only go up just a couple of years ago.

Just be thankful you took the RED pill.

Because there is a lot of case law routinely piercing single member LLCs as nothing more than an alter-ego entity. Especially, if the taxpayer has elected to treat it as a pass-thru entity. Lots of courts are looking at single member LLCs as little more than expensive and complex DBA registrations.

A corporation, even one wholly owned by a single shareholder is harder to pierce. But, still easier than one with multiple shareholders.

As in many things in this world, there is strength and protection in numbers.

The stuff from landlordaccounting.com is very good. I have recommended them many times.

If there are multiple members it does not have to a partnership return. It can be treated like a corporation either subS or C. But for the life of me, I can't see ANY advantage of creating an LLC and having it treated like a C corp for tax purposes.

For a single member LLC there is no real asset or liability protection. For multiple members, if you keep everything up to date and operate it correctly you get one way protection. Claims against the LLC can't spill over to your personal assets except in certain instances.

Yes, the peak was 24.9% in 1933. Back then they did not exclude those who had quit looking or never started looking from the numbers. Today, anyone who is no longer looking for a job is not part of the work force.

Also, that approximately 17% number does not include any measure of those who are under-employed.

That 17% number comes from using the data from the US labor department. All you have to do is add back in the excluded categories that should not be excluded.

Originally posted by Joshua Dorkin:

Anyone want to venture a guess on the true unemployment number?

Currently, it is hovering at about 17%. It will be closer to 20% by the third quarter.

Originally posted by Michael Shuster:

Now, with all indications that the market is close to the bottom (in many areas),

I'm not so sure. There is a very good chance most areas are still in for a price decline. Time will tell, but trying to time any market is foolhardy. I'm not so sure that is the case. The smart investors are buying. But, they are very selective in their purchases and buying at steep discounts. There is no doubt the bottom will only be accurately called through hindsight.


Prices are reverting to the mean. They have done it several times in our history. I don't think we are on the verge of any kind of return to appreciation of property above the inflation rate for a long time. Cash flow is the only thing that is going to matter to smart investors for some time. There are some opportunities to buy property and increase its value, but it will come from some kind of action. The times of buying now, hold for awhile and then selling for a much higher price are gone. And they won't be back any time soon.

True, as long as you are buying at the right prices. I hate to burst your optimistic bubble, but boom times are not just around the corner.

We have been through...

The tech bubble;
The stock market bubble;
The credit bubble;
The housing bubble;

We are just entering the government bubble and when it pops, and it will, things are going to get really interesting if you are prepared, scary as hell if you aren't.

I agree there is no reason for an investor to be rude. Even in a seller's market the buyer is the one driving the transaction. It's just that there is an over abundance of buyers. That is certainly not the case today.

There are good and bad investors just like agents. A good investor will seek out a good agent if they are smart and vice versa.

It's kind of sad really that investors have a bad rep with agents. Most agents who complain about "investors" are really complaining about speculators and others who don't have the first clue about investing but are looking for a quick buck.

FWIW, serious investors don't feel the same way about agents in general. We recognize the service they provide.