All Forum Posts by: Noam Adler

Are you this guy's girlfriend?

https://www.biggerpockets.com/forums/52/topics/301317-should-i-make-my-girlfriend-sign-a-lease

In all seriousness though, it seems like he is being protective of his assets.  In this scenario, you would have no claim to the house if things do go south, you're just a tenant.  I am usually a proponent of doing things this way since at the end of the day, you guys are not married yet.  If he were a friend of mine, I would advise him to do things exactly as he has done them.

Whether or not this is "fair" is determined by your individual relationship.

In regards to Series LLCs and states that recognize them or not, the issue comes down to each specific state recognizing the "internal liability shield." Not if they have a Series LLC to create in that state or not--an investor in any state can form a Series LLC in a different state if he or she wants one. Every state has an internal liability shield for LLCs and that is what is analyzed in every state: the LLC Internal liability shield of the state you're being sued in. There is a misconception that the Series LLC is a new entity. It is not.

It was first created in 1996 in Delaware, over two decades ago. While the Traditional LLC is more established, it is not much "older." The Traditional LLC first became available in Wyoming in 1977, but most other states did not follow suit until the 1990s. The next state was Delaware, which enacted LLC legislation in 1995, followed by California in 1994/5. It was not until 1996 that all states had an LLC option. The same year, the Series LLC was statutorily created. So it's interesting how people quickly fall in love with the Traditional LLC thinking it's been around forever. But the reality is that after the creation of the LLC in most states, the Series LLC immediately came into the game. Just one year after California codified the traditional LLC.

And I don't deal with foreign filing generally, as I will have the property held in a Land Trust. The Land Trust is technically operating the company, and the "child" series is the beneficiary of the Land Trust. So I end up having the protection of the SLLC, but the asset is technically being operated by the Land Trust. Great way to loop in the best financing options, since you can transfer a property from your name into a Land Trust after getting a loan - the Land Trust is an exempted transfer from the Due on Sale Clause.

@Account Closed Thank you members for the insight. Looks like i am at the mercy of the county at this point. So plan moving forward should be to buy distressed properties and fix them up to avoid a big jump in property taxes. I am glad i learnt this lesson in early stages of my investment career. Will probably ride this property for a couple of years and renovate as i move along to get to a better selling price point in a couple of years. 

On a second note , i have seen attorneys fight it with the county and charge you 25% of the reduced tax bill. I am not sure if that would be something i should look into. Seems no harm to pay 25% if i can get it reduced by some amount.

Thank you - Ashish 

quick reminder, our monthly BP Meetup is tonight at 6pm. 

No pitching, just networking and trying to grow our businesses through masterminding. 

i am leaning on using IIP solely based on recommendations from other OOS investors and my interactions with Anna. She's been very respondent and asked a lease manager, (Sharon) to come out this Thurs after we do inspections to look at the property. Of course, this is before anything has been managed so i should have more updates in the next 3-6 months here.