All Forum Posts by: Dale Stevens

@Steve B.

 I will have to do a search on that. Yes. Most on here are investors and haven't had the wonderful experience of having litigation. I have. I have witnessed in others (when I was in court for mine). 

LLC protection is important (when handled correctly). Just like we don't think about car insurance until we need it. THen we have to battle over what is covered, etc. Just ask anyone that has put in a claim of any type on insurance. You want to be sure your personal home as well as many other properties are protected. I have several LLCs. I keep them all separated, file the paperwork, keep minutes. keep the finances separate, etc.

I am not an attorney, but have experienced the need for entity protection personally.

Yes you need insurance, in the name of the entity that owns the property. Maybe name yourself (manager) as additional insured. We live in a world where people want something for nothing. They would rather sue, than take responsibility for being stupid themselves. So protect yourself. 

Have you checked into the average time to Eviction in Cook County and in Chicago? That was enough to keep me out of Cook County altogether. I suggest you ask the Sheriff how long that process is right now. 

Also reach out to a local eviction attorney to find out how long it takes to get the Writ of Eviction authorized by the judge once you file. Then compare to other locales.

@Jeremiah B. are you really telling someone not to file a LLC because most don't file them correctly? Seems to me, the advice should be "Yes this a business and should be treated as such. With that being said, this means you must TREAT it as such. File the paperwork correctly, do not co-mingle funds, keep the paperwork for meetings, minutes, annual filings, etc up to date. Get the proper EIN for the entity, etc.

To say an insurance policy will protect you is absurd. @Steve B. nails it . do you believe that an insurance company will actually not find a loop hole to leave you high and dry? They aren't in the business of paying claims, but charging premiums!

But yes, sure you can get insurance and it might pay out on small claims. With that said, real estate investors that rely solely on insurance as a means of protection from personal liability take a significant risk. Liability policies typically have limits, exceptions and carve-outs. While the chance of a loss that exceeds policy limits may be remote, if it happens, the consequences can be devastating.

@Eric Schneider as you stated, this is a business. Get a proper attorney's advice to protect yourself correctly! If the attorney believes you shoudl keep it in your own name and use an insurance policy, I would be shocked, but they are the ones that know the laws.

Ok @Rob Beland let's just be clear here, are you an attorney? Or just spewing legal advice? I am not an attorney, but can you name me one multi-million dollar company that isnt' filed as a company? Maybe Arthur Blank is just Arthur Blank DBA Home Depot (for those that need it DBA means Doing Business As).

@Xavier Y. - it can take a while to "SEASON" an entity for credit. So best to start now! With that being said, my initial advice stands. Work with a LOCAL LENDER (not Chase, not BofA) etc. They will help you create the business and lend to the BUSINESS. I have several dozen properties and have been working with local lenders. All my loans are to my LLC. If I properly keep the LLC up to date on paperwork. including annual reports, meetings, etc. filed, it does indeed insulate you. Your personal assets aren't opened to it. An attorney can file, but you block it with yoru attorney and, I can speak from personal experience. the judge tosses their claims out.

If it was held in my personal name. I would have had issues with my own personal assets. 

We can agree to disagree. I am not an attorney, but I pay mine to protect my FUTURE, my BUSINESS. because it is that important to not leave it to chance.  That is my advice through my personal experience. I have found anyone sharing advice other is simply attempting to save money on legal filings and maybe a slightly lower interest rate on their loans.

Just had a loan on a package of 6 properties in the name of an LLC to one bank. 25 year term and 5% interest. The LLC was 15 months old and only had the properties in it.

You go to a local lender. That is what I did. A community local bank. Just the same way small businesses get started without the help of  the small business association.  

Putting properties in your own name is not how you conduct business. I see many people on here giving that advice, and not a single one is a licensed or practicing attorney. From personal experience let me tell you, INSURANCE COMPANIES will find a way to say you were negligent and you are left holding the bag as you pay for attorneys to defend you and fight for you with the insurance company.

Does it take longer to find? YES> Is it worth it to ensure you have the right foundation to truly build a large portfolio. YES. 

Easy advice... stop buying properties in your own name. Start realizing this is a business. File one, find a business lender willing to lend on real estate, and build a real portfolio. Sorry if this is harsh, but I am giving this advice as a person that learned the hard way.

Once I took this seriously, I am now in a much better position as I am treating it like a business.

Resurrecting and old post here I know, but I was at a local REIA meeting last night, and one of the people said, "You know you are from Chicago when you tell distance by TIME." @Senica Evans said you were 20 minutes from downtown. So you are a Chicagoan. I had never thought of it until he mentioned that, but it is 100%. We don't say we are 20 miles from downtown, no we say "20 minutes without traffic". ha

Check your real estate taxes there. My only advice. I found some insanely high taxes in south cook county.

Welcome to the craziness that is BP. It is a solid resource, just be sure to always verify what is posted by some on here. Not all advice is solid. Not all is ill-intended, but here in Chicago we have different markets, laws, codes, and timeframes than other areas. So sometimes people giving you advice don't realize that.

I suggest getting out to some of the local networking groups as well. I have been to many and if you contact me privately I will share my personal experiences. I just don't feel comfortable posting my personal takes for fear of backlash from others (I have seen it on here, don't want to fall into a mudslinging thread with it).

But congrats on taking the step to sign up here and posting! Good luck

Welcome to BP from a follow Chicagoan. I have been to a few REI Clubs and meetups. Feel free to connect with me. I prefer not to share my experiences on the publicly as not to be "attacked" by people defending or promoting. But I will share my personal experience of the ones i have attended if you want, privately.