All Forum Posts by: Jeff L.

@Bryan - can you tell me where I can find out more information regarding this technique?

@Lynn - is your umbrella liability policy part of your primary homeowner's insurance policy or did you open a separate policy?

@Nick - My reasons are based around asset protection and not exposing my personal assets, "real" business, etc to any litigation. Both my financial adviser and estate lawyer recommend it as do many on this forum.

I do realize that it has been discussed many times and everyone states that it is rare for them to call it. However, they emphatically told me they would call it and that it is a violation of my agreement.

Hi.

I have 4 rental properties financed through 3 different mortgage companies. 2 of the 3 told me today that they would call the mortgage due if I transfer the property to an LLC.

I am waiting to hear back from the third.

Has anyone else ran into this?

Jeff

@Dion - Thank you for all the information.

"In regards to the address question, you can use a Registered Agent to satisfy this condition for all three states."

Based upon the statement of information, you must provide a physical address, a mailing address (which can be the same), and a a registered agent. Since I have no business address, how can I avoid providing my home address?

Hi all.

I have 4 single-family rentals out of state (two different states). Currently, all 4 properties are in my name.

I know - I should form an LLC. I have been pondering this for what seems like forever.

Not being an expert in this area, I find myself seeking a trusted adviser, reading these forums, and trying to educate myself on other's experiences. Unfortunately, everyone's opinion is different! Out of fear of making the wrong move, some of us (me) end up doing nothing which is the worst possible thing.

Questions spinning in my mind:

1. Where to form the LLC. I live in CA but my properties are elsewhere. A lawyer told me to set it up in CA. A financial adviser recommended Delaware. Fellow real estate investors suggest Nevada.

2. Do I need a PO Box? Some say do not use your personal residence as the LLC business address. Here in the CA, you must give a physical address to form an LLC.

3. Member-managed or manager-managed? My accountant mentioned something about a disregarded entity.

With some much information and so many opinions available, who's advice is correct?

Sorry for ranting. I'm just feeling a little frustrated, overwhelmed, and in need of advice that I can trust and believe in.

Hi.

I have 4 properties traditionally financed at 6.25%. Each are rented with positive cash-flow. My lowest principal amount owed is 45k.

Since rates are low (< 4%), I was considering refinancing my personal residence with a 50k cash-out. I would then pay-off the 45k on the property mentioned above. My thinking is that I am borrowing money 4% rather than 6.25% with the additional bonus of having one of my rental properties paid off.

Is that wise? Am I thinking correctly?

Thanks.

Personally, I hope that you had a good team on the ground before you purchased the property.

Do you know of any good REI clubs or groups in our area?

Privacy and asset protection are two things that I am very interested in. I've spoken with a couple of different real estate attorneys and accountants. Both suggest similar approaches but slightly different. At what point does one concern themselves with getting the properties out their name and into a legal entity?

Thanks.