Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 4 years ago on . Most recent reply

User Stats

8
Posts
0
Votes
Wendell Burris
  • Rental Property Investor
  • Lubbock, TX
0
Votes |
8
Posts

NEW TO BP. BRRRR MOTIVATION AND SET UP

Wendell Burris
  • Rental Property Investor
  • Lubbock, TX
Posted

Hey everyone. I'm new here to BP and hoping to get some great advice and encouragement. I'm looking into the BRRRR strategy and currently building my team. I have run into a few questions, really just wanting to make sure I'm doing it correctly. Any help would help.

- setting up a business entity. I have interviewed 4 asset protection firms. Which way do I go? One says to get an LLC for every property and have a holding company manage those llcs. While the other says just use a Nevada LLC to hold all your properties as you put them each in a land trust. Any pro or cons to these? Any work better than the other?

- I plan on using a PML to fund the deals and repairs. Should the money from the PML pass through to my "business entity" that is set up to hold properties or should I create a separate entity to purchase and repair or just have all the money go to me? Which way would be best practice and what does that look like?

- PML calculator available? New here and not sure if one exists already or if just using the deal analyzer will do the trick. I think I'm thinking too hard about how I calculate this. Example, let's say I offer a PML a 12% annual rate of return. I finish the deal and refinance in 4 months. Do I pay only 4 months worth or a straight 12% profit? Or is this just however the deal is structured? What does each look like?

Thanks in advance for any advice on these!

Most Popular Reply

User Stats

985
Posts
960
Votes
Costin I.
  • Rental Property Investor
  • Round Rock, TX
960
Votes |
985
Posts
Costin I.
  • Rental Property Investor
  • Round Rock, TX
Replied

@Scott Smith can speak better about the Series-LLC, but I would say the fact it was not tested in court is more of a FOR testimony than against, given the long duration now they been adopted (born in 1990 with the Delaware Business Trust act, in Texas since 2009).

Also, keep in mind, a lawyer recommending individual LLCs has a direct interest in that recommendation. With a Series LLC, you might have more cost initially, but after that you can create child series with an internal document. That hits directly on the bottom line of a lawyer looking to charge you for each LLC you create for each property.

Loading replies...