All Forum Posts by: Worth Styles

I recently heard of them and was considering using them. I called them to ask for terms and such and the guy couldn't answer basic term questions. He told me the deposit was $5,000 (everyone here were asked $3,000 apparently) plus EMD (where's the 100% funding?) and said I could talk to someone who would go over the terms with me after I made the deposit, LOL! It was all fishy from the first phone call to me.

The only time an LLC will not provide liability protection is when you mismanage it (even as a single member) and that applies to any other entity. The whole purpose of a LLC is to limit your liability, as it is disregarded for tax purposes. Many will try to scare you by telling you that you can lose other properties in it if you get sued, which may be true, but then the real concern should be, what are you doing that someone can sue you and win? I've never heard of a business getting sued and losing everything from one lawsuit. Do mismanaged it, keep clear distinction between what's personal and what's the LLC's and don't do shady business.

Depends on if you're only going to do business in VA with that LLC or if you'll also invest in CA. If that's the case, then it's best to incorporate in your home state. Single member LLCs are disregarded entities for tax purposes. Meaning you'll be filing taxes as a self-employed individual, and you'll be double taxed with or without it. If your business is investing in rental properties then yes, you are "doing business" in that state.

I've helped clients with no legal status in the US. There are property managers that require a US issued photo ID, others don't care as long as they provide a form of identification (Ex: passport from their country) and prove their income. I guess it comes down to your own personal preference. 

Personally, having one LLC for each property sounds like a very crazy idea. There's expenses in forming each LLC, in which some states it could be pricey. Let's not forget that you have to pay yearly fees to the state Corporation Commission and the register agent fee per LLC in each state. If you have 50 LLCs for 50 properties, it adds up very quickly. Businesses get sued all the time, yet they don't lose all their assets over 1 lawsuit.

If you’re going to go a different route than what the law states, it’s always best to keep good records of the transaction. You should have an official document you use every time you pay them right away. Remember, if for any reason  you have to defend yourself in court, you have to have consistency or you could be guilty of fair housing violation for giving "priorities" to certain people.

@Dan Bernstein actually it was a deal in Silver Spring, MD. The hard money lender finds properties and lend the money. That was the property I was working on getting but couldn't make it work.

And yes, I can do the construction, I have the people. I'm a class A state licensed contractor. The person I work with has extensive experience in everything from new construction to simple repairs. 

@Marc Winter That's what I feel like is my only option for now. Thanks for the advice!

I'm looking for seasoned investors' advise...

I have been trying to figure out a way to get started investing in real estate for a while but have been unsuccessful. I'm a licensed realtor in the state of Virginia , I have the state's contractors license (I can get all the work done myself) and I have been loaned $20,000 by a family member.

I have contacted every investor friendly lender that lends in my state and most require that I...

1) have done at least 1 previous deal (which I haven't)

2) have good credit and a steady income (which I don't have either)

and the last one that doesn't require either, require that I put up 20% of the deal.

Example: 290K purchase price + 60k renovations = 350k total. So in this case, I have to bring $70,000 PLUS closing costs (which I don't have).

I'm looking to flip a property and I feel I have exhausted all my options. I'd greatly appreciate your help!

@Carolyn Morales I'm not sure about the first question, I'm wondering the same thing, but for the second: it depends on the deal you work out with the broker when you join them. Some take a percentage of your commission, others take a flat fee plus expenses.

@Ned Carey Thanks, that makes sense. Do you happen to know how likely it is that brokers let an agent close on his own deals only and nothing else? Or are they rare and those investor just got lucky?