All Forum Posts by: Tal Shachar

Hi @Alexis R Beckley,

I think it depends on what is your LLC about...

For a holding company (if you choose to do so), I would use a meaningful name, that will indicate the purpose of your business.

For a single-member LLC, that owns a property or two, I would use the street/area/city of the property, as a suffix to your holding company's name, but avoid a too long name.

I agree with Megan, about considering anonymity, and there are many ways to do so.

Check Clint Coons videos on YT to learn more about Real Estate LLCs

Good luck!

Thank you, @Joshua Strickland!

Hi @Sean Bramble,

I also follow Tony J. Robinson (The Real Estate Robinsons) on YT. 

They provide great content about STR.

 Right, Wendy, I also follow Clint Coons and there is a lot to learn...

and I believe you meant "Disregarded" entity.

@Ayano Itoh,

feel free to reach out if you have any questions

Hi @Ayano Itoh,

We do long distance investing, and we opened an LLC in WY, as the holding company, and an LLC in the state where we have the properties, which is owned by the holding company.

We used Corporate Direct in WY to form.the LLC, which provides us local address and registered agent, so your name is not on the public records.

Good luck!

@Kwame Essieh,

I know there is a way to move your property to a Land Trust, where you are the beneficiary and the LLC is the trustee, so it does not appear as change of ownership.

As @Bryan Balducki said, there is very low chance that the mortgage company will call the due on sale, if you are paying the mortgage on time (they most likely sold the loan by now), but definitely consult a real-estate lawyer, to make sure you're covered.

Good luck!

@Nicholas J. Hancock,

What a detailed and super helpful answer!

Thanks for taking the time to explain that.

@Katelyn Atcavage Robideaux,

I would definitely look for a CPA who specializes in real-estate investments (hopefully one who invest themselves). About LLC per property - it depends on your equity in the property, how cash-flow it brings every year, etc. (basically, don't put all your eggs in one basket).

I prefer having a holding company LLC, typically member-managed or manager-managed, and the property's LLCs to be under it (SMLLC). It is pretty simple structure, and if you don't open an LLC per property, it is not too expensive (if you seek anonymity, establish the holding company in NV or WY)

Good luck with expanding your portfolio!

From what I learned, moving from LLC to S-Corp is recommended when you cross the $40,000-$50,000 in net income, and would like to start paying yourself (as W2 employee of the S-Corp), and avoid double-taxation.

I'm fairly newbie as well, so take it with a grain of salt...

Would love to hear what others recommend

I asked my lender similar question (moving my LTR to LLC, after signing the closing documents)

Per my understanding, you should not do this, since the lender could enforce the due on sale clause, however my lender told me (over the phone... he said he cannot put it in writing :-) ) that chances someone will check on you, are slim.

I decided not to transfer it eventually, and most likely will start with establishing LLC prior to purchasing my next property.