All Forum Posts by: Tushar Shah

Hello everyone, 

Thanks Erik. I now understand the pros/cons and understand the importance of keeping personal address secret. Do you generally use one mailbox for multiple LLCs or have one mailbox for each LLC?

Thanks Joe for being blunt. I had posted this question to learn about best practices as i knew what i was currently doing was incorrect. I am planning to take the UPS route as its fairly easy was to create an LLC online in matter of 15 minutes.

Question i had for you was do you use same mailbox address for multiple LLCs or you open one mailbox for each LLC. The latter sounds like a administrative nightmare and i am hoping having one mailbox for multiple LLCs will suffice the requirement.

Thanks once again for the inputs. 

 

Agree with your statement about getting going. My initial few smaller investments (single family homes) were bought under my personal name. Now i am moving on to commercial properties (with 5 units and up) and therefore considering taking the LLC route. These buildings are multi levels and have risk of tenant falling etc and therefore would prefer to have this under an LLC purely from liability protection perspective.

@Doug Pintarch Thanks for the info provided and directing me to the UPS route. I been doing some digging and found out that USPS also provides a mailbox with a physical street address (similar to the one provided by UPS). However, the cost is $98.0 for entire year for USPC in comparison to $35 per month being charged by UPS. Only downfall is USPC Is little future away from me - but given the low volume of mail expected, i am open to this idea. 

Another question i had was do you open one UPS mailbox for each LLC or you use one mail box for all your LLCs/properties?

Only mail in am expecting is from IRS and my bank and therefore was planning to use one mailbox for multiple LLCs/businesses but wanted to check if there are any drawbacks associated with this.

@Ori Skloot Try US Bank. I have been approved for 80% financing with 2.5% interest rate. 5 year fixed and 25 year amortizing.

@Doug Pintarch Thanks Doug, I didn't know about UPS. It's something I can look into. Online research indicated they charge close to $50 per month for renting the mail box. Seems little expensive to handle small volume of mail. More important for me was to realize that we should not be using our personal address. Thanks once again for the input.

@John Warren Thanks John. Based on my experience an attorney charges a lot to create a LLC. This can easily be created in minutes online. That is why I took the registered agent route. But its good to know that no is using their personal address and I need to figure something else out. Thanks once again for the input.

Hello BP Members, 

I am a investor located in Chicago and am looking into buying a multifamily property in North West Indiana (NWI) - Hammond. I plan to buy the property under an LLC and not my personal name via a commercial loan.

In relation to forming the LLC in NWI i understand the following:

1) Given that i am not a resident of Indiana, i will have to identify a registered agent and use the address provided to create the LLC.

2) On discussing with registered agent i understand that the address they provide can only with Secretary of state. They strictly indicated that address cannot be used for any other purpose - including EIN, IRS and bank purposes. 

3) As such for creating an EIN, property tax and bank account purposes - i will need to use my personal/primary residential address in Chicago. 

The question i had was - is this common to have personal address for LLCs for EIN, IRS and bank purposes? Doesn't this defeat the entire purpose of creating an LLC to remain independent and keep personal assets/information away? How are other out of state investors handling this and whether there are best practices related to LLC formation that i should be aware about.

As always - thanks in advance for all help and assistance. 

Regards, 

Tushar Shah, CFA

 

@Russell W. Thanks Russell for detailed response. Yes, by boiler I meant hot water heater. So one hot water heater and one furnace for the 6 units. Electric for each unit is separate with 8 separate meters. Few additional questions related to this:

1) Does one run into issues related to capacity of hot water by having a common hot water heater- where one resident uses more hot water than other and another resident running out of hot water? Not sure if this is something you have experienced in your multi family buildings?

2) What is the protocol for maintenance for these items - maintenance done twice a year, once a year or one in two years? Online research recommends performing maintenance atleast twice a year for a hot water heater. Not sure what maintenance expectation i should be looking for these older houses. 

3) Good to get your opinion on galvanized plumbing. Wouldn't it be an extremely expensive affair to replace entire building's plumbing with copper and/or PEX piping? If one finds out the building had galvanized plumbing - would you negotiate the price to factor in the expense related to replacing copper/PEX piping? 

4) Also, i am not sure if the building has steam hot water heaters - I will find out more and keep in mind your point regarding the cast iron pipes. 

5) Excellent point on mortar joints. The building i am looking at is a brick building. Who does the inspection for Mortar joints - is it the general inspector or does one need to hire a professional for this?

Thanks once again for detailed information. Very very helpful.