All Forum Posts by: Cliff T.

Congrats Anthony! Keep it up!

How did this work out @Jordan Moorhead?

Based on what I've researched, I think @Jeff Kehl made a prudent point -- the OA serves as an important document in case your LLC ever gets sued. Seems like it's worth the cost to get a solid OA in place if you're going down the LLC route, otherwise just forget the LLC, purchase in your name, and buy a bigger umbrella policy.

Thanks all for the info on this thread. Can anyone please clarify these two points for me?

1. If I form my LLC in PA (I'm based in CA) in the near future, when is the $800 due for the CA Franchise Tax? I have read that the $800 fee is due within 4 months of LLC creation, but would like to confirm.

2. If I'm uncertain if I will have business activity in the PA-based LLC for the rest of 2018, do I need to still pay the Franchise Tax?

Got it. Love the idea of building a partnership with your contractor. Thanks Mike.

Hi all,

I'm an out of state investor and have a question for other fellow long distance investors.

Do you pay your contractor/property manager if they stop by to take photos and videos of prospective properties you're looking to purchase? If so, how much do you pay per visit?

I can see the argument for both sides: on one hand, they are helping to vet their own future business so no payment is needed; on the other hand, their time is valuable and it seems reasonable to pay some fixed amount per visit.

Thanks in advance for the response!

Ok got it, thanks for the info. I'll look for an insurance broker.

Correct - no car as of now. SF is quite Lyft/Uber friendly so it's actually cheaper to use rideshare than own a vehicle.

Got it. Thanks for the replies!

I have my rental insurance through Allstate and Statefarm but neither can offer umbrella insurance policies bc I don't have an auto insurance policy.

Anyone know of a company that provides umbrella insurance as a stand alone product?

I have my rental insurance through Allstate and Statefarm but neither can offer umbrella insurance policies bc I don't have an auto insurance policy.

Anyone know of a company that provides umbrella insurance as a stand alone product?

Hi all,

I am closing in on a deal and will be using my fiancee's HELOC (she owns the current property we live in) to fund the entire purchase, no loan will be used. What are my options when purchasing using the HELOC under her name? I will eventually BRRR the property and will be able to pay back the HELOC in 6 months.

1. Is it possible for her to"loan" me the money without incurring any tax penalties such as the gift tax? If so, is this as simple as her drawing from the HELOC and wiring the funds into my bank account so I can complete the purchase under my name?

2. If gifting/loaning the funds to me tax-free is not an option, is it possible for her to fund the purchase with her HELOC but have the property purchased under my name? I know if we were taking out a loan this would not be possible as down payments for investment properties cannot be gifted, I'm not sure what the rules for all-cash purchases are.

Since I manage our other investment properties in the area (all under my name), I don't want to put this new property in her name as it will create additional hassle of signing a new contract with our PM, creating new accounts with the utility companies, etc.

Thanks in advance for the help!