All Forum Posts by: Michael R.

 Any traction on this?

Get an attorney.

@Pari has the right idea. The short answer to your question is to set up a separate account in your name just for your property. Even though it's in your name this will help you keeps books throughout the year and help you track expenses and revenues. You or your CPA will thank you in 10 months.

Long term you will have decisions to make on how up want to structure your business so that you can do what works best for you.  Keeping good books is important in any business and separating accounts will help. 

Business vs personal.....do you want to scale and file an LLC at some point? The longer you own and operate a solvent business the better your business credit will be (Expect 3 to 5 years of tax returns to help substantiate your biz).

I hope that helps.

There have been some awesome suggestions thus far.  Hop on the podcasts too - you may find some of your questions are addressed. Also @Joshua Dorkin posted this for you! Two BP guides to help.

I hope that helps.

Respectfully, the thought behind the separation of debt is inaccurate. I own my own company (non REI) so again this is just my experience. When you get your EIN and take it to a bank and open business accounts, you will no doubt look to open a credit card. Any credit is ran against you. Your social security number. So it is indeed your debt.

Whenever I apply for any kind of financing, my company debt is factored in. Unless someone else is going to own the company, it all comes back to you.

I hope that helps.

@Curt Davis are there provisions that may prevent him from doing the quit claim? (asking for myself too btw).

I recall being faced with the same choice and we opted not to becsuse the rate would have been higher and we felt our insurance was enough. 

The LLC will get financing based off of your credit any how since it's brand new. LLCs are like anything else, they have merit after tax returns so until you have them any credit cards or lines of credit will be based on your income. The sooner you start the better so you can file taxes - and organizing expenses on a corporate card makes it easy come tax time.

So the one difference you may find is that the financing will cost more because it will not be a loan to you. Meaning you wouldn't be able to get FHA or VA financing for example. We have great accountants who help us tremendously - you may consider running this by yours.

I hope that helps.

I think a kitchenette is too much trouble and you would have added areas for potential expenses later. 

Sure Mud rooms aren't sexy but you could put some nice prefab storage in that area and make it a functional mud room with storage. 

Everyone wants more storage and the long term cost of upkeep on storage is attractive.

I hope that helps.

@K. Marie Poe - thank you for sharing. That is really interesting and I haD nkt haD much exposure oit side of a couple of this thread and a couple of documentaries. I have heard of a tiny house village in Downtown DC as well. At some point I will do a drive by. 

I don't think you can compare tiny homes to mobile homes. I say that based on the type of asset classes we are talking about here.  This was discussed heavily in Podcast 111. I could see going from Tiny Home to Mobile Home to SFH.

With that said, this conversation has come up in my circle of colleagues and I always ask, how many people do you know that live in one? I don't know anyone, nor does anyone I ask.

I tend to agree that this would be ideal for seasonal or vacation homes. To me the lack of equity long term is unattractive but as was also stated, everyone has different desires and different investing strategies.

The average CEO reads 4-5 Books per month according to this site.

I am working through the podcasts while I read as much as possible on Audio books.

The 10X Rule is an excellent book in my opinion.  Sell or Be Sold is also an excellent read / listen.

All the best.