Here’s how you do the rental property LLC thing
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- čas přidán 14. 05. 2023
- I’m not your lawyer & these are just preferences 👉
But I prefer to hold a rental property in an LLC formed in one of the business friendly states mentioned, hold that LLC under a management company, and own interests in that management company under a self settled trust.
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🤔💭.... Juuuust, 1 More time. Please.
Trust is 100% way to go. Put into a Trust because if you buy a property and the Investor is a GSE (FNMA/FHLMC/HUD/etc) you cannot simply close it in a LLC or change from your name to a LLC. LLC’s do NOT protect your properties. If you pay cash you can put into a LLC but I/anyone can still sue you and take the property if the court rules as such. Oh…been doing this 30 years in Real Estate Industry and worked through the courts so I do know exactly what I’m doing. Good luck.
Watcha mean LLC doesn't protect your properties like at all or just not 100% cause there's plenty of laws and examples that says otherwise. If that's the case what's the point of an LLC you may was well go personal since loans are easier
Question! We own an LLC that will be used for our real estate portfolio. The property itself is in our personal names. However when we decide to build on this property wouldn't we use a Quitclaim deed to then transfer the property from our personal name into the LLC we already formed!? Because we have had name transfers before on the property through our counties appraisal district with no hassle and a simple application process. Is that the same route we should take again, considering we are both the owner of the property and the LLC itself?
@@marioandultrachapI believe the LLC will protect your personal property and other properties not in that LLC, but it will not protect the property in the LLC. That’s my understanding anyway.
Bingo! Add to that if you put a rental property in Texas (or other states) in a wyoming LLC you pay a foreign LLC tax. Put it into a land Trust with the beneficiary being the LLC OR put it in a local LLC with the only member being the foreign LLC and make it member managed.
I think I fully understood that the third time I watched! Love your videos man hopefully I’ll be buying some of you docs and methods soon! Graduating next summer and saving for my first rental property working through college!
You forgot the EIN.
Thank you brother gonna use this very very soon
Excellent info! One thing to watch: be very careful how your personal funds go from your personal bank account to/from the LLC bank account. Keep them as separate as possible!
Shouldn’t each property should have its own LLC with an S-Corp as the parent?
How does an old get financed for a mortgage? Is it with your personal credit and income?
This sounds much better
SHEEEESH !!!!
There seems to be some mixed reviews on how many LLCs you need. If you've got five properties under one LLC and something happens at one of them can they sue you for the assets of the other properties?
Thats what it seems like.. because all of your assets are under that "establishment" if they sue that LLC, and you have other properties you make money off of are liable.
And now my bank wants to call in the loan as the property is under an LLC now. Insurance now 2-3x more as it’s commercial. Not to mention higher fees and easy to make mistakes when filing taxes…all for what? Some overkill? Ya.
Can I schedule a call with you? how would I go about that! Thank you.
So when you do your taxes, you only file once using the parent LLC(holding company) and not multiple times with each LLC?
That sounds like alotta work
Worth it
U didn't talk about how to buy a home with a loan under a LLC?
Exactly!
Good Lord blablanlabla that's exactly what it sounded like you raced through it so fast.
Can you have these properties in different states with the same LLC formed in another ?
You have to pay a lot of money to close LLCs in Delaware. Nobody tells you that. Don’t move your LLC to Delaware until you are already successful otherwise it could cost you a lot of money if you don’t succeed.
I wonder why in those specific states.
Tax advantages
How do you get a mortgage through the LLC to pay for the rental property?
Put it into a Trust. Trust 100%. If you pay cash you can put into a LLC but I/anyone can still sue you and take the property if the court permits it. GSE’s/Investors don’t want anyone changing owners to LLC…encapsulated within a Trust is fine.
You don’t get a mortgage through the LLC to pay for a rental property unless you are using the revenue stream from the LLC to qualify for a loan. In some cases you may be able to qualify using the rental income from a multi-unit property to purchase the multi-unit property.
Oh…been doing this 30 years and worked through the courts so I do know exactly what I’m doing.
Do you by any chance know how long the llc has to be running to qualify for a multi family. For example if I have 25k for a 4 plex as my first property but I want to buy it in a llc name. How would I qualify through the llc?
So you are listed as the LLC organizer and most likely the registered agent. If youre going through wyoming, delaware or nevada for anonymity you just lost it forming your own LLC
hmmm…. trusts are like $10,000.00 to open
WRONG!! You don’t make yourself the trustee because you lose anonymity. You have a nominee trustee
Nope…this only work if your paying cash for the home with no loan.
Please consult an attorney before you do this. Dude is creating double tax liabilities and getting you to think an umbrella insurance policy is all you need for rental properties is a great way to go broke quick when one thing goes bad.
Slow it down bruv!
Dude cannot give out legal advise