All Forum Posts by: David Roberts

who isn't out there trying to make money off of me? Lol

I did talk to a lawyer.

So, I am new to the world of real estate as a business, and therefore I am not comfortable arguing one way or the other with anyone in here that's posted.  Some of you are very well established in this arena.  So, it leaves me wondering what is correct, or if all ways work and some are more expensive than others.

My attorney suggested having 1 property per LLC to protect one house from the other. She then suggested I could have 1 LLC own all other LLCs. But, everyone has their own agenda. My attorney requires 300 per LLC to set them up. I can set them up on my own for 50 in Michigan, however when it comes to law I get very nervous. Too many areas to get caught.

Having 50 LLCs created by an attorny is a lot of money. I have 1 rental without an LLC now, and is under my living trust. For future property, i was at least thinking to make 1 LLC per property.

I really don't know what is best, given all of the suggestions in this thread, my attorney telling me something else, other investors telling me other things...

I suppose further education is a must.

In Michigan if I'm the only member it is 50 to start and 25 to maintain I believe.  Not bad.  

I just want to do the smartest thing.  I don't know what that is.  I only know what I've heard from others, and what my lawyer advised.  But, lawyers want to make money too so their advice should be considered as such I suppose.

My lawyer wants 300 per LLC to do it for me, but I think it is very simple for me to set one up, especially if I'm not having any partners.

what is a P&L? 

thanks fir the advice 

Protection from one tenant jeopardizing the other homes if one sued me. 

It is what was suggested,  but yes I agree,  paperwork nightmare. 

there are big investors on this board that at least have an llc for every property.  

One investor friend suggested this also,  1 llc to own all other llc...  Basically more protection. 

Merry with an attorney today who said the same. 

This will likely be an easy question for some of you.

So, if I generate 3 LLCs, 2 of which hold 1 rental home in each, and the 3rd which is the main LLC that owns all other LLCs under it...

How do I make that true?  What I mean is, how do I get the hierarchy on paper?  

ABC LLC governs YY LLC and ZZ LLC. But how do I make it on paper so that this is true?

After I create 3 separate LLCs, then how do I get the ABC LLC to have possession and ownership of the other 3?

At the moment I do not have any LLCs created. Do I need to make ABC LLC first, and then if that matters, how do I fill out the articles of organization (or whatever other form is required) to make YY LLC and ZZ LLC a holding?

I'm sorry if I'm confusing the question...

I agree 

In the midst of looking for my second SF Rental, a possible special deal fell into my lap, but I'm not sure I know how to analyze it correctly.  My girlfriend's mother's friend is retiring and getting ready to put their apartment complexes up on the market.

They have 3 4-unit buildings, 1 of them is on another street from the other 2.  

They are asking 200k per building (50k per door).

Here are some figures from the owner:

All units are 1-bedroom about 700sqft each

Monthly Average Rent: 525

Annual Property taxes: 7000

Annual Insurance: 1500

No property management (owners do all the work, former construction guy)

Owner didn't go into operating cost detail, but stated "WHEN" they had a mortgage (assuming they no longer do), but BEFORE maintenance/vacancy they were at 15k income.

I plan to finance with conventional if I can even do that on a complex building (no idea how a lender views this type of loan).

I'm coming up with 1542.97 for the PITI...and I used 5k in maintenance/vacany planned cost.

Is this a good deal?  What would be a good cash flow per door for an apartment complex, a small one like this?

I like to get 300/ Single Family Home...is it comparable?