Trying to get organized.

4 Replies

Hello everyone. I just got started in real estate investing about 3 years ago. I currently have two condos, one SFR rental and my primary home which is an SFR. Both SFRs have home insurance. I'm not sure yet if I should get an additional insurance for my condos because the HOA already have extensive coverage. I plan to add one or two more in the next 6 months. I have a full time job in healthcare and I also got my real estate salesperson license 3 years ago here in Las Vegas. I currently have one bank account which is my personal account and this is where my tenants direct deposits their rent. I currently don't have a business license or trust, LLC etc. What should be my next step? What am I missing? Any advice on how to get organized since I manage my own properties and have two jobs? Thanks in advance.

I personally would not hold real estate investments as a person.  For me, they need to be in an entity of some type, and that will be based on what your plans are for your real estate portfolio.  I would talk to an Attorney that specializes in this area.  I can refer you to mine that is here in Las Vegas if you need a referral.  Shoot me an email if you do.

Good post it sounds like you definitely need to "get organized" as well as setup protection for your hard earned investments. 

You need a good Estate Attorney. If you need one let me know.

I am not an attorney and I recommend you speak to one. This is not legal advice but my opinion. I would setup a LLC for your rentals. The bank account should be under that LLC name. If you run all of the income and expenses for your rental properties out of that one LLC account it will make your accounting and tracking much simpler than having it commingled with your personal income and expenses. I would put the LLC and my primary property in my trust. I would not put my primary proeprty in the same LLC as the rentals.

In regard to the insurance policies for the condos, you will want to check exactly what is covered by the HOA's insurance policy. From there you decide if further coverage is needed. Typically the Hazard Insurance the HOA supplies only covers the exterior not the interior. You can then decide if you want coverage for the interior. You can also require your tenants to have insurance as long as it is spelled out in the lease. I have an awesome insurance agent if you would like her contact info as well.

Long story short you need to talk to a good estate attorney and a good insurance agent ASAP.

I hope this is helpful. Please feel to reach out if I can be of any further assistance.

Charlie Fitzgerald thanks for the referral. I will let you know when I'm ready. I wanted to do a little bit of research first before I speak with him.
Robert Adams thanks so much for the very clear step by step explanation. This is what I was hoping for to get started with my next step. I will inbox you so I could get the contact info of your insurance agent.

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