All Forum Posts by: Damon Wong

@Kevin Siedlecki Recycling this thread, but curious what direction you went.  I'm in the same boat you were in when you posted this.  So this year, I'm just trying to find good software to file my multiple LLCs (partnership) & rental properties.  I'm in the hunt for a solid CPA, but right now I'm paying that "advice rate" for plug & play data entry.

Thanks @Sean Morrison!  This makes a lot of sense.  When I brought that up with my CPA, it sounded like putting my rentals in individual/local LLCs would be quite expensive (from a tax filing perspective).  He indicated that some states don't require Foreign Entities to register if they are just 'owning rental properties'---i.e. not deemed "transacting business."  

Any thoughts on utilizing local Trusts (i.e. Land Trust) to hold Title, and having my Holding LLC be the beneficiary? May be a good hybrid solution to ease the tax filing fees while still achieving asset protection?

Thanks Christopher.  I'm also looking from the aspect of whether or not I need to file/register my Foreign Entity to "do business" in each state I own rental properties. 

Does anyone have a list (published or just via experience) of States that DO NOT recognize ownership of rental property as "Transacting Business" in their state?  

Most states have vague definitions of "transacting business" (which is for the better), but I've heard some DO have precedent of exemption/waiver if the activity is owning rental property. I've already reached out to a handful of state/local attorneys in various states, but I figured someone might have already gone through this research. *I do recognize there are many nuances to "owning rental property," but am just looking for basic-level precedence (i.e. Foreign LLC owns property, hires a local/3rd party property management company to operate the rental).

Any input is greatly appreciated, Thanks.

-Damon

Anyone have a good consulting reference/source for optimizing business (LLC) structure for real estate rental portfolio?

I have a mess of properties in multiple states (NV, AZ, TN, FL, and MO) with some of the joint ventures with different business partners. I inevitably would like everything to flow through a single holding LLC, but seems very complicated when considering Title, Mortgage, Management, etc. The primary purpose would be to flow all income through my personal holding LLC for (ease) of tax/accounting purposes.

Any input greatly appreciated; thanks,

Damon

@Salvatore Lentini thanks. I need to start growing that side of things. I have mortgages across many different lenders right now and it’s be nice if I could consolidate and establish that relationship for better future deals.

@Simmy Ahluwalia will let you know if anything falls through but was able to move forward with a local lender. Thanks!

@Paul Higbie was able to get a local lender; much appreciate the response tho.

Anyone know of a bank that will cash-out refinance a rental property in Las Vegas, NV? Many banks have declined the service, and one bank capped me at 60% LTV with an inflated interest rate (even after points).

@Terrence Evans Good point.  Do you have any servicing companies that you recommend I check out?  Ideally, someone who can service nationwide.  Right now, I only have 1 note, so servicing isn't difficult; but as I grow the portfolio I 100% agree and don't want the hassle.