All Forum Posts by: Account Closed

I started with a single member LLC - bought three properties, and am looking at changing title to my personal name. Here's why:

1) You need to find a portfolio lender in order to expand your business into more loans with a LLC. A portfolio lender is going to want you to also have a "personal banking relationship" despite having business accounts. How many personal checking/savings accounts do you want? Portfolio lenders are also regional which means that when I establish a banking relationship with a portfolio lender in Colorado, they won't lend me money in Indiana.

2) Your income is passed through on Schedule E and on Schedule C of your personal income tax return.  Talk to a good TAX ACCOUNTANT about this.  Your Schedule E losses can go up to $25,000 but if you have expenses that cannot be allocated to the rentals, they show up as a passive loss (that you can't deduct) on Schedule C.  Essentially, to make it work, you'll also need to flip some properties so you have income to offset those losses.

3) For a couple of rental properties (less than 10 or so), a simple umbrella policy with your local insurance company will cover your liability on your rentals - talk to your insurance agent about this.

4) If you are investing out of state, there are bi-annual requirements for "foreign LLCs" and there is a fee for those filings...and there is a fee to use a registered agent.  In some states, it's about $100 for the filing, in other states it's $1,000 for the filing.  Registered agents can run about another $100.  So if you see an opportunity in Texas as an example, you have to $900 to register your company and another $100 for a registered agent.  That's $1,000 out of pocket and you haven't even done the deal yet...

5) If you plan to continue to work, and you get laid off, having a LLC can jeopardize your unemployment benefits. Rental income does not count against you, but working at "your business" does - whether you pay yourself or not and your rent receipts may give you problems with relation to claiming that unemployment benefit.

Those are just some of the examples....

Two comments - I have bank accounts, a line of credit, and a credit card for my single member LLC with Wells Fargo. No issues (and I use a P.O. Box). You might go into a Wells Fargo Branch that is in the local area where your LLC was formed (I'm gathering it is a foreign LLC in Utah and a domestic LLC in South Carolina?).

Second, I have a single member LLC that is wholly owned by another single member LLC. Quite honestly, all this will do is complicate things for you (as it did for me)...essentially, since they are both single member LLCs, you'll basically have to report the separate activities on two separate Schedule Cs for income tax purposes...

Wait...so you're the customer and you're asking how the sales person should react based on how you dress?  If the sales person you are working with can't accommodate you then move on.  It's not your problem - it's theirs.

Find a sales person you are comfortable doing business with and build a relationship with that person - whether it involves shorts and a t-shirt or a suit and tie.  If you aren't comfortable working with the sales person, then you don't belong doing business with that sales person.

Imagine Steve Jobs showing up at Lehman Brothers in a turtleneck and jeans and them turning him down because of how he was dressed LOL.

No issue on my end.  Make sure you account for it appropriately for income tax purposes.

I can only speak from my own experience...the electronic pest deterrents work for insects (spiders especially).  They advertise they deter mice but I've not seen that as being an effective solution for mice.  I have a doggie door in my home and mice still make their way in to eat the dog food I have set out for my two dogs.  Flies tend to come in, explore, and then leave.  If insects are the only issue, try the electronic stuff and tell your tenants it's the best option when pets are around.  I would also recommend citronella candles in the summer.

That's what I would do.

1) what does your lease say

2) what kind of condition is the house in (I recently had a tenant move out that complained of ants...upon move out I found excessive food splatter on the stove and unwashed roasting pans in the warming drawer of the oven).  Is this due to negligence?

3) Do they have pets?  Pesticides can harm pets...and it can be a good deterrent to tenants requesting you to poisoning the area that may affect their pets.

4) Electronic pest deterrents are cheap and instructions state it could take up to 3 months to get results...in 3 months, those pests are doing other things....

I have a couple of properties out of State.  I have one a long distance away (that was recently listed for sale).  Here are my thoughts....

1) Find a rock solid property manager that has their own crew for repairs and maintenance.  I can't tell you how much easier this makes things on you.  It's basically turn-key without the label (and additional expense of turn-key rentals).

2) Make sure the location is not in a flood zone. Flood zones changed this year - do your homework. Go to the FEMA website and do some searching. I have one rental that went from a non-flood zone to a flood zone. I was able to get Flood insurance before the change and I am grandfathered in at the lower rate.

3) The internet is your friend.  Check news reports, check websites that provide feedback (rentfax.com is one of many) and check what rentals are going for in the area.  Also check what other houses are going for in the area and check photos.

4) If you have a chance or can afford it, do a walk through.  Being there will give you a different perspective than reviewing photos.  I've bought three properties via photos but actually being there can make a huge difference.

Good luck.

Yes, buy it.  I had a Title company perform a search and certify there were no liens on the property.  About 6 months later, I get a bill from the water department.  Called the title company and they took care of it.  9 months later I received a certified letter from the city about how they are billing me for mowing the lawn (prior to the date I purchased it)...title insurance company took care of it.  If it's available, I'd recommend it - no different than any other type of insurance.

How much time do you have?

There are a few smart phone apps where you can sell books based on ISBN Number (there are also websites)

Contact local used book stores

Contact a local University Library (they would be more interested if it's a collection specific to topic...as an example, the University of Denver has the largest cook book collection in the West - and they aren't a culinary school)

Contact a local Public Library

Offer to sell them all at once on eBay (local pickup required)

etc.

What part of "Southern Indiana"?  There are a few cities in Southern Indiana.  I have a terrific property manager in Evansville and know of at least two other companies that do management there.

If you're at a complete loss, I would start by calling real estate agents in the area - they can be a great resource (and it's worked for me in the past in other areas).