All Forum Posts by: Avery Goodman

Starting a new Florida real estate brokerage, what are pros/cons of using personal name vs. dba name -- eg, James Smith Real Estate vs. Panhandle Realty? Don't want to supervise or be supervised, so a modest operation, not trying to create a national brand or anything.

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PGI around 108k. 3 duplexes, a triplex, and a SFH.

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My customer has roughly 1.2M equity in multifamily rentals, and his only debt is an 80k HELOC on his 190k primary residence. Taxable income the past 2 years around 38k/year, so how can he leverage some of that 1.2M equity?

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Reviving an older thread here -- so how do you investors actually structure the legal partnership with your GC? An LLC with joint partners/members? I'm in an unusual situation where my buddy who happens to be a GC put up 100% funds to buy a flip, and I'm doing the realtor legwork. We'll both be involved hands-on with the renovation work, and we're 50/50 on the net profit, so how is the profit split when it's time to sell the house (other than I totally trust him)? Modest flip, basis 120k, 20k reno, ARV 180+, not exactly 70%, but a fun project near both our personal houses.

So I guess in this case we couldn't form an LLC to hold title because then I'd assume 50% ownership in a property with no skin in the game...other than paying for inspections, etc.

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Thanks, I'll keep the SFH. My question is about how to leverage the equity in my triplex.

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Hey Kenneth, thanks for chiming in. My equity is ~200k in a triplex and ~150 in sfh rental, no debt.

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I need around 270k to pay cash for a multi-family unit in my area, asking price 799k. I have approx. 350k in equity in other rental properties. Can I borrow on the 350k equity, and if so, how would that loan compare to a regular HELOC? Higher rate, I'm assuming? At any rate, I'd be better off borrowing on the 350k equity than just taking out a business loan for 270k to buy the subject property, correct?

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No mortgages -- own all properties outright. And I think my atty assumed I was creating FL LLCs, as one of the QCDs mistakenly says xyz, "a Florida LLC."

Originally posted by @Nicole A.:

Yes. Generally speaking (unless you listen to the latest "guru strategies"), you open the LLC in the same state that you are doing business. It has nothing to do with where you live. The fact that your attorney didn't make you aware of this is another sign that he is not the best. Sure, great for when you're at 100+ properties to have more than one and all.

But right now, besides the fact there was no need to form out of state, you likely have not a ton of equity, and there's no reason to spend so much extra money to protect assets that are mortgaged with lower equity.

Some people even purposely keep their equity low because then there isn't a lot of net worth to actually chase.

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So should I have created the LLCs in Florida, since the rental properties are all in Florida? I assumed that since I lived in Georgia, my LLCs would likewise have to be created in GA.

Originally posted by @Nicole A.:

I agree with @Aaron K.. If your attorney is telling you to form 2 LLCs at this point, and also to have the LLCs formed in a different state than the properties, he is costing you extra money in taxes and fees for no real reason.

When you have a LLC in one state, but operate in another, it's a "foreign entity" and you get to pay some extra fees for that. Also, when you decide to sell the LLC's property, you will possibly pay an extra fee/tax at closing due to that out of state LLC.

You may have a good relationship with him, but I don't feel he's giving you the best advice at this point.

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Originally posted by @Aaron K.:

@Avery Goodman no offense to your attorney, but I might talk to someone else a bit more objective, make it clear you will not use their services only their advice and pay them for their time otherwise by the time you get 100 rentals you could be filing 50 different tax returns if each LLC owns only 2 SFRs.

My attorney's advice to create two LLCs was a long-term strategy, as in, if you continue to invest in real estate and eventually acquire 100 rentals, two LLCs will hold you for awhile. He did my QCDs pro bono, incidentally.

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All Forum Posts by: Avery Goodman

Avery Goodman has started 5 posts and replied 16 times.

Post: NAMING A REAL ESTATE BROKERAGE

Post: ~LEVERAGING 1.2M EQUITY~

Post: ~LEVERAGING 1.2M EQUITY~

Post: Building a flip partnership with a GC

Post: How to Buy My Next Multi-Family

Post: How to Buy My Next Multi-Family

Post: How to Buy My Next Multi-Family

Post: LLC as Rental Property Owner AND Manager

Post: LLC as Rental Property Owner AND Manager

Post: LLC as Rental Property Owner AND Manager