All Forum Posts by: Dave Versch

Originally posted by Jason Goldberg:

Thanks Jon and Dave. Its actually myself and my wife that are the owners of the LLC, how does that make it different? so that means gains/losses are still under my/our personal taxes?

If you and your wife file jointly, it will still be treated as a pass-through for tax purposes even though there is more than one member.

Hi,

I've got a mortgage app in for a rental property. One of the conditions of the mortgage (which were given to me after applying) is that I need to purchase replacement cost coverage rather than cash value coverage. I'm purchasing the house for around 30K. To actually rebuild the house could easily cost 5 to 10 times that amount. Since it's an investment and I'll never be living there, if the place burns to the ground I just want to make sure I can pay off the mortgage, good riddance, and on to the next investment. Why should the bank care about anything else? If I can pay them off, in my view they should be satisfied. What am I missing?
Anyway, in the likely event that I won't be able to convince the bank to change their way of thinking, does anyone out there know of any bank doing conventional financing that would accept cash value insurance for an investment property in a situation where the cash value is much less than the replacement cost would be?

Jason,

As long as you're the only owner of the LLC, it will be no different for tax purposes than owning it under your name. If there is a tax advantage of an LLC it's as opposed to an S-Corp or a C-Corp in some cases. (If more than one person is listed as "members" of the LLC, it's a little more complex.)
The only advantage of an LLC over personal ownership has to do with the fact that it limits your liability, hence the name.

Originally posted by Richard Warren:

Mets! Wire to wire...and no collapse this year.

:cool:

Boy does that sound familiar!!

GO YANKEES!!!!

Originally posted by moneypenny:

It looks like they're going to investigate the Beverly Hills fertility doctor who did the invitro procedure on Octo Mom. Good. He should be the one to support them. moneypenny

Thanks for bringing that up. This doc should have his medical license suspended permanently regardless of what the investigation turns up, just for doing this one procedure. If the investigation turns anything else up, I hope he's prosecuted and spends a few years getting intimately acquainted with the inmates in his friendly neighborhood state prison. I'm not defending the idiot mother at all, but at least she has the excuse of being mentally ill at best, or just plain stupid. This doctor and any other medical personnel involved in this case were just plain greedy, and should all be forced to support these kids. I know it'll never happen, but I'm so damned sick and tired of supporting every irresponsible jerk in this country who is unwilling to support and take responsibility for themselves, and getting screwed by every greedy banker/doctor/lawyer... We're getting it from both ends and it doesn't seem like it's gonna change any time soon.

Originally posted by John Adeiza:

Thanks Jon for your contribution. I heard that registering an LLC in Nevada is better way of doing it, but does any one now how much it cost to run an out of state LLC?

John, I'm not from CA, but most times when you form an LLC or other business entity out of state, you need to register it as a foreign entity in the state you plan on doing business in anyway. The fee for such a registration is usually very close to, if not exactly, what the fee would have been to form the LLC in state anyway, so now you've paid more fees that you would have if you had just formed in-state. Also, if you're LLC is formed out of state, it may not afford you the same liability protection (the whole reason for an LLC in the first place) if someone sues you in-state.

As a rule, it's best to form the entity in the state in which you plan on doing business. Skimping on a few hundred in fees could cost you a few hundred thousand later on.

I've done a few tax liens in here in NJ. You bid on the lien, and then you earn interest on the lien AS LONG AS YOU KEEP PAYING THE TAXES EACH QUARTER. You need to keep the payments up otherwise someone else can swoop in and grab the next quarter's liens, and find himself in the catbird seat. So it's not just a one time thing - you have to keep up that property's tax payments. Then after a period of time (5 years?) you can petition for forecosure. After foreclosure happens, you then occasionally get to experience the thrill of watching the previous owners (or just as often a squatter0 getting dragged out of the building by the sherrif

Originally posted by Nc Mark:

"Hustler"??? Do you mean the magazine?

Just wanted to see if anyone was paying attention. :D

Hi,

I'm wondering what's the best way to know what the vacancy rate is in a particular area, zip code, city, whatever. I've been using Sperlings (www.bestplaces.net), but sometimes I wonder how accurate and up to date their data is. Any suggestions?

Hustler.