All Forum Posts by: Brandon Reda

Looking forward to it!

Great responses, thank you. I will for sure have an attorney representing my LLC when I get down to the nitty gritty, I just wanted to have a solid base before I’m influenced too greatly by just his opionions. I have read a lot about land trusts and once I get bigger, and especially once I get in to rentals, I am planning on transferring title of my personal residence/assets to a trust. In regards to forming th LLC out of state, I understand having the name in a place like Nevada would be costly being a foreign entity, but I read a way to cut costs would be to hold the company in Whyoming, since they are able to do work in Illinois but instead of paying a $500 filing fee each year for Illinois they only have a $50 filing fee. Would that just overly complicate everything just to save a few bucks?

Thanks for the replies. That’s all what I’d be assuming, what I read was about something other than real estate, basically a guy who committed credit card fraud in florida got sued and thought he was safe because he held everything in an LLC, but the court ruled since it was just a single member LLC and not a partnership they went after his personal assets. And is the profit still taxed at a personal level if I choose to be taxed as an scorp? Not that I’m planning on doing anything “illegal” but I do plan to have slight risk in the sense I know a lot of handymen/sub contractors employees through my line of work that would do “side work” not thru their company. Just in case someone gets hurt on the job, or a nosey neighbor gets hurt and hypothetIcally insurance isn’t enough to cover it is there any way they could come after my personal assets?

I’m in the works go setting up an llc for fix and flips for asset protection, up till this point Ive been set on doing a single member llc since I wont have any partners. I’ve been reading Loopholes of Real Estate and got worried when I heard a few states (like Florida) can still go after the owner in a lawsuit against the entity in a smllc since they see it as only one persons asset. Can someone shed some light on this, more specifically in Illinois? Would it be better to add someone to the business, I know I’d get taxed harder and have to have workers comp so that’s why I’m trying to avoid going that route. Thanks in advance

I appreciate the the tips, time to start making some phone calls

I feel I have a pretty good grasp on my business plan, and I'm ready to have a consultation with a CPA and attorney. Can someone send me some referrals in the st. charles, geneva, batavia, north aurora, elgin, west chicago, Illinois area? I've used the same real estate attorney for all my buys/sells in the past, as has my family but I'm always willing to see other options. I'd like them to have reputable experience with dealing with fix and flippers, not cost a crazy amount since I'm not going to be doing 50 flips my first year or doing any rentals yet, so it shouldnt be too complex (3-4 is my goal in an LLC), ideally a free consultation but thats not a must. Any input would be greatly appreciated! Thanks.

Brandon Reda

Thank you. I reached out to a lot of my surrounding municipalities this morning, most only require a licensed plumber and roofer, and don’t have a gc licensing program (Illinois doesn’t require it either), the others it’s just a small annual fee, no testing required, no bonding required. So I can pull permits myself. Once I start getting more towards Chicago it gets more complicated but now I know where to start.

Thank you for your input. Do you think it would be worth it to get licensed? I know my local villages require about a 10,000 bond and they take a cut of the total project cost, which is nonsense. Im not even sure I would be approved for the bond being new, or would have a crazy 5%-10% cost. They also would require workers comp, but as a single member llc I wouldn’t need it so I’m not sure how that would work either. Would I even be saving that much money in the end? As for the company name, yea I figured that but it’s just so hard to resist!

@jason bott can you also PM me the info about the NREI program? Thanks in advance!

Hello, So I’m still in my planning stages to begin flipping, I just have a few questions that I’m hoping have simple answers. I want to do everything the right way and I also want to protect myself. I’m planning on creating an llc before I purchase my first property (REDAvelopment, I thought it was clever) so I can start establishing some business credit right away, since I’ll have to personally back the commercial loans. Originally I was planning on general contracting the jobs myself since I’ve been in the construction field for a while and I understand the flow of how a rehab works. I would have each sub contractor pull permits per their scope of work which I will provide. I do not have a general contractors license, but I was reading about some states require flipping businesses to have a general contractors license, can anyone verify this in Illinois? Also, after reading some local building codes, they state things like bath, kitchen, and basement remodels would be just one permit, but I could have 5 subs on that one permit, how would I go about that since I wouldn’t have a general contractor to input each company? They only would allow a homeowner to do that, by definition that would be someone who lives in the property for 6 months after the work is completed. I have thought about getting my general contractors license, but it’s just starting to seem like I’m doing quite a bit for someone who hasn’t flipped a property yet. Thanks! Brandon Reda