All Forum Posts by: Chuck H.

Yes, they work. However, you have to take steps to make it harder to "pierce the corporate veil."

1. The LLC should have its own bank account. Do not mingle personal and LLC funds and expenses.

2. The LLC should have a general commercial liability (GCL) policy. They are cheap and protects the LLC from a lawsuit.

3. Have annual meetings (even if with yourself) in which you record minutes, submit all necessary annual paperwork to the state, written policies, etc.

Essentially conduct the LLC like a business and not simply an extension of yourself. If a lawsuit arises and the judgment is higher than your LLC's assets (cash, the house, etc), their lawyer is going to try to prove that your LLC is not an LLC, but simply you. This is "piercing the corporate veil" in which they will go after your personal assets.

Yes, tell them they are all on the lease and each is responsible for the full amount.

You are not concerned about the social structure within the house, only that the rent is paid and the property is kept in good condition. If they would like to remove or replace one of the tenants with someone you approve of, there will be no penalty to do so.

I wouldn't buy a 1 bath unless it was a 2 or less bedroom.

I'd remain cordial and not be rude. I always like the neighbors to have my number so they can keep an eye on the property in case of an emergency or the tenants creating problems. Whenever you have selected a tenant, tell the neighbor about them.

If it didn't close because the seller owed money, then they owed more than your offer and the title company could not pay off their loan at closing. The contract is done, but don't think you can now offer less. The same problem will come up at title.

@Account Closed Either one works. If I had a choice, I'd rather do some of the work myself so I can do it how I like. However, I'm looking in the southeast near my work - Friendswood, Pasadena, Deer Park, etc.

Thanks for the reply. I am clearing $230k in the Dallas sale. I'd like to get two properties here for $100-130k each.

Closing on Dallas property is today so I need to identify 3 replacement properties within 45 days. Close within 180 days (no big deal since it will be in cash).

I like single family residential, but open to duplex.

Hi all,

I've lived in Houston since 2006. I've owned some properties up in Dallas that I'm thinking about moving down here through a 1031 exchange. Closing on one today.

I'm looking for replacement properties in Pasadena, Deer Park, La Porte, Friendswood area near my work. $100-130k range. I'm not averse to a project if it needs some work. Prefer no flooding. Where can I go for the best leads? The MLS had a few, but I was outbid. I have cash and can close anytime. Thanks.

I am part of a limited partnership in which the partners each own several properties. We currently each self insure, but also considering getting insurance to minimize risk. Is there an insurance “pool” similar to the medical industry in which the entire partnership would pay into, but managed by an insurance company? The company would investigate and pay claims, but the money would come from our own funds.

I am not looking for specific companies. Just that this service exists.