All Forum Posts by: Jeff Gardner

I've owned the property since 1982. 

Wondering if there were any mentors who could examine my numbers on a rental house that I own.

I own it outright. Zero liens.

Rent: $1553 per month autodeposited
Taxes: $8200 per year
Management: 10%
Expenses: $3600 (water bill, repairs)
Insurance: $50 per month

We've had a major "repair" event each year so that's why the expenses are super high.  This year was a water leak in the basement.  

The cashflow is not that high and the area doesn't appreciate appreciation. I could sell it for $220,000 right now which is the same 5 years ago.  

Would you take that cash to a better cashflowing property?

After researching Texas Series LLC for a week, I think I'm more confused now than ever before. 🤣 Wondering if anyone has any insight... ?

Here's the deal: I've currently got 2 properties. I've got 120 acres of farmland in Iowa and a SFH in Illinois. And I'd like to start a wholesaling business in Texas, where I live.

I was thinking about creating a Texas Series LLC - and then having a sub-series hold the wholesaling business, another holding the farmland, another holding the Illinois SFH.

However, I'm being told that the Texas Series LLC may not be great for property in other states (Illinois or Iowa) due to different LLC laws. So I may be better off just putting my wholesaling biz in it's own LLC (not a series) and then just putting each property into an LLC in it's own state.

Bit more expense - especially as I start investing in more properties. Was thinking series LLC would simply everything and keep costs down. I'd like to get this setup correctly now before I start building. (However, the advice I'm finding online is all over the board and contradictory at times - even among law firms.)

ANY suggestions on how to get this set up correctly from the jump? Thank you!

I'm looking for people who have setup "real estate" as a business.

Right now, I have three paid off properties that are cash-flowing.  What setup/structure do you prefer for your real estate business (best for taxes, best for flexibility, best for liability)

I have done extensive research and the way I'm seeing it is this:

Setup Corporation in Montana/Nevada/Delaware
Each property you buy is setup as its own LLC in the state that it's in and the main corporation is the owner.

For example:

Main Real Estate LLC in Delaware
555 Elm Street LLC in Texas (owned by Main Real Estate LLC)

450 Hickory Street LLC in Texas (owned by Main Real Estate LLC)

145 First Ave LLC in Iowa (owned by Main Real Estate LLC)



I want to get this right before my next purchase.  Do you have a setup that you prefer over the others?  If so, please reply or DM me if you want to keep it private.   Thanks!

Okay. Here's the deal:

My friend found a foreclosed home at auction that is on the tax rolls for $650,000. He showed me the photos on zillow - and it appears to be a beautiful 4,000+ square foot home in Dallas that could be work $650k. The comps in the paperwork show sales in the same area (from 2013) in the $600 to $700K range.

He wants us to go to the bank together to "get our ducks in a row" and... together... qualify for lines of credit totaling $400,000. His plan is to try to get it for $400,000... and then immediately sell it for $500K to $650K and split the profit.

Even though he went to real estate school 20 years ago - and was an agent a few years back then... I'm wary about getting a line of credit and being on the hook for $400K... with the assumption that it WILL sell for $500K or $650K afterwards. He makes it sounds like a sure thing - but I've been burned on real estate deals before.

What are your thoughts on this? When I told him I was wary about doing this, he got all upset and told me it was a sure thing. 

I do want to get into real estate - but I think learning about it first... maybe picking up a book, reading on here, or talking to someone with experience... might be a better first step than running out and getting on the hook for $400K.

Am I too cautious? Should I do the deal?

Or what steps should I take to know whether or not I should do the deal?

Thanks for your help/advice.