All Forum Posts by: David Miller

Just as a good litigation attorney can pierce the corporate veil when a LLC principal makes a mistake, a good corporate/asset protection attorney can minimize or eliminate a LLC's vulnerability to piercing the veil. Another point that has not been mentioned is the impact that death, disability, divorce and disagreement can have if you own a property in your individual name versus a LLC. You generally have more control over what happens in those cases if your assets are in a LLC with a well written operating agreement. Financing can sometimes be more complex with a LLC, which can be a big drawback.

A couple triangle options would be appreciated. Thank you.

Try fundthatflip.com. There may be some options there. You may be able to get the construction loan individually and have the LLC pledge the property as collateral for the loan. Otherwise, it is a more typical commercial construction loan.

JVs are completely different world if your partners are sophisticated. Operating agreements, waterfalls, management authority, decision making authority, etc. become really important. It adds a whole new layer to the equation.

Any attorneys you would recommend?

Jeremy - Robert C. offers good advice. You might consider starting with something in the 5-10 units range. The process for underwriting, financing and managing will have a lot of carryover for a larger deal with less of the downside as you fine tune your operational skills.

Any other ways?

How do NC wholesalers do your closings? I assume an assignment of contract where the assignment fee is the difference between the contract price and your buyer's price?

Keep the security deposit and put it toward the repair (assuming that is allowed by state law). Most important task is getting the repair done and the property cash flowing again. If you have recourse via your lease or state law, you can considering pursuing them for damages. I had a previous SFR with extensive cat urine and we had to remove carpet and some flooring...if the subfloor is affected, replace it.

@Jacqueline Gardiner I recommend you consult with an attorney on the proposed 1031 transfer from funds held in your individual name to a single member LLC. @Dave Foster is correct that single member LLC is a disregarded entity and all profit/loss is reported on your individual tax return, but a single member LLC can still has a separate tax ID #. I do know if that would trip the IRS up or create an issue...perhaps not. Just make sure you know the rules before you sell the CA property. also, make sure the funds from the sale of your CA property are deposited directly with the qualified intermediary....anything that goes directly to you from the sale of your CA property is ineligible for a 1031 exchange.