All Forum Posts by: Scott Kelly

Hey- wanted to say thanks to everyone who recommended Mike Finney and Shelter. I have a single family investment property in St. Louis that's been with State Farm, Safeco and Farmers over the years. And with each of them, the premium jumped 14 to 26% after the first year -- I've never had a claim, btw. Farmer's was the latest, so I searched BP and found this post with references to Mike and Shelter. And I'm happy I did. The premium he quoted me was cheaper than the first policy I had with State Farm when I bought the property. Great customer service, too when the bank was giving us a bit of grief over the LLC name (they missed our names as the added insurers). Anyway. Thanks BP peeps. +1 for Shelter.

Yikes... I get it, now. Ugh, more money and time. Thanks for catching that for me. I hope they don't have the same publishing requirements type of thing as NY. Since I've spent so much time and money spinning my wheels trying to figure this out by my self, I've decided to use a MO attorney to help finish the rest off. I still have to deal with a clause in my loan contract about needing written permission from the lender before I can transfer the property or the loan may be called due. Not sure what I'm going to do if they won't approve it. Thanks again. -Scott

Uwe,

My registered agent is in Delaware, as it's a requirement for Delaware LLCs to have one in the state. Hadn't thought about having one in MO. It's a good idea. But still, Del's requirement precludes that. Thanks for the suggestion, however!

Here's the latest update:
After researching banks that offer 'free' biz checking, I took a look at Capital One and HSBC. Capital One said that since they did not have a presence in MO, where the property is located, I couldn't open an account with them. HSBC said pretty much the same thing, but with the caveat that if they did have a presence in MO, then I would have to get the Certificate of Authority as a foreign LLC for NY, after all. They require it. Ultimately, I ended up with Bank of America--they're in MO and do not require anything Authority note from NY. Publishing money saved! Everything was done on the phone. So far so good. Take care.

Again, thanks to everyone for your responses. I met with my account for tax season and asked him what he recommends. He said, as some of you have, that the biz is in St. Louis, not NY, so NY does not have to be involved. I just get an EIN for the LLC and open a biz checking account. Thanks again.

I'm a bit confused. So what constitutes doing business? Property in MO. LLC created in DE. I live in NY. If the address for the llc is listed as NY, does that mean the LLC has to be registered in NY? Which means I have to use some kind of forwarding service form a DE address to my home address to bypass this?

Thank you for the replies. I should have asked this question months ago, it would have saved me $300 in fees and some aggravation.. I'm going to go the bank account route leaving NY out of the loop and see how it goes. At least I'll save the NY publishing costs, which is significant. Thanks again.

Hi. Was wondering if someone could offer some advice. We own a rental property in St. Louis, live in NYC and have recently setup a Delaware LLC to put the rental property under in order to protect our personal assets for liability purposes. We need some kind of bank account, whether business checking or escrow, for the LLC to manage funds for the rental property.

Here's the problem. New York has a publishing requirement for all LLCs, local or foreign, where you have to proclaim your business in two or three local publications for six weeks before you can become a good standing LLC in NY. This publishing can cost anywhere up to $1800 depending on what publications the county clerks office randomly assigns to you. That's a chunk of change. I assume I need this good standing in order to get a bank account in NY, but is it really necessary? Are there any other recommend options? Our cash flow is almost non-existent with the property as it is (actually negative after a recent vacancy and repairs). These additional costs aren't helping. Any advice or suggested alternative for liability protection would be appreciated, even if it's to say that we have no other option. Thanks!

Mike,

Thanks for the reply. That's pretty much what I figured. I will start digging through the Cap Rate topic for more info.

Regards,
Scott

In a book I'm reading, and example was given thus...

"If the current market for a type or property required a 9% return on the capital invested..."

My question is how does one determine the current market "required" or expected, or average or fair cash on cash rate of return on a particular type of property in a specific area?

I can't seem to find this information anywhere.

Is there available data on this? Or is this an educated guestimate made by brokers? I think it would be great information to have in order to set a fair market baseline when looking for income properties.

Thanks.