IRS Guidelines for Single Member Limited Liability Companies:http://www.irs.gov/businesses/small/article/0,,id=158625,00.htmlA single-member LLC is a "disregard entity" to the IRS and treated like a sole-proprietorship.If you hold for more than a year its capital gains.

If there was a Hall of Fame for investors, Lonnie would probably be in it.It's too bad too that so many following this scheme did so as preditory dealers to the extent of having federal legsilation adopted to restrict the practice.I guess the best way to proceed is to make enough on your fist few deals, maybe sell the notes for cash and pay the fees to become a licensened mortgage originator and a dealer, otherwise you'll be limited to conducting business.BTW, Another similar "system" involves selling land, if it's zoned residential or can be used as residential raw land, it also falls under the SAFE Act.

They offer various options for coverage limits, and most of the time, they'll provide an evidence of insurance (underwritten through Lloyds of London from what I understand) the same day the web form is submitted.The biggest downside with them is that the cost is a bit on the high side

If you invest in a duplex or higher units, your pool of potential buyers when you want to exit becomes extremely limited - pretty much investors only, and most investors want a steep discount.

It shouldn't be too high for sure, but often too low is also less than ideal.For example, you have 5 credit cards with $10,000 limits for $50,000 in total available revolving credit.

I was wondering, what are the limits you guys are generally going with along with deductible amounts.

I have a contractor only have $10,000 bond.and he has a workman comp with "STATE COMPENSATION INSURANCE FUND" and it has no limit. anyone heard of STATE COMPENSATION INSURANCE FUND?

Eric Archer in the book says Originally posted by Eric Archer: Limited Liability for potential exposure to claims of creditors.

What proactive measures do you take to increase profitability on your rental units?

. / $4,166.67Annual debt service “DS”Revenues:Monthly AnnuallyRental Income$935$11,220.00 (RI)Vacancy @ 8% ($74.80)($897.60)Net Rental Income $860.20$10,322.40 NRI)Operating Expenses:Property Tax- 1800 (this is being challenged currently, but no ruling at this time)Insurance- 1000 (estimate, I will get a quote on this for sure.)Maintenance- 1200 (Estimate)Utilities- 800 (Estimate)Advertising- 100 (Estimate)Total Operating Expenses (*Very Estimated*) = $4900 (TOE)Net Operating IncomeNRI-TOE= NOI$10,322.40-$4900= $5422.50 (NOI)Total Cash FlowNOI- DS= TCF$5.422.40-$4,166.67= $1,255.73Return on InvestmentTCF/ TCO= ROI$1,255.73/ $5,000= .2511 (25.11%)Cash on Cash (Considering- Down Payment, Upfront Repairs, Closing Costs)TCF/ TCO (W/repairs and closing costs)$1,255.73/ $6,500 ($5,000 DP + $0 Initial Repairs + $1,500 Closing Cost) = .1923 (19.23%)My thoughts regarding this deal: I think the asking price is a little high for the property considering it’s age, condition (off of visual inspection from the street level only), location, what limited comps I could find.