All Forum Posts by: Michael Seutin

question regarding llc, I read in another thread that it's important to not use my llc business account as my personal piggy bank, now I am planning on having the rents deposited directly in my business checking account which will be the one for my llc.
1. do I have to have a separate busines checking account for each different llc?
2. is there something wrong with taking money out of my business checking acc to pay myself or other bills?

I am thinking of approaching a bank for a business line of credit of hopefully 50k, but I ll them as collateral a duplex I bought cash for 25k with repairs (probably worth that much).
Problem is, I just create my LLC recently and that duplex is the only item in my LLC.
Do you guys think it will help or work to give them the duplex as collateral in order to get approved?

Ken
I have been waiting for someone to say that, that's how I feel also, so I agree with you, it seems that since my llc, it's more complicated.
But now that I have one, I am trying to see if I can make use of it by trying to get into business lines of credits and business loans once I show a little positive history to the bank, I hope the LLC will at least help in that department, if not, then I ll find it useles.

Mike V: If you buy other properties the refi then you just pulled equity from one and placed it in another, so they could still go after you. Or do you do something else with the money from stripping your properties?

Also, what is the proper way to sign a one member LLC, wouldn't just my regular signature be enough, or would that be considered bad LLC paper trail ?

Thanks for all the info above, that was really detailed and informative.
I don't think I would enjoy real estate as much if I have to do so much on every new purchase, plus each property I buy grosses on average $1000/month or $500/month after expenses etc.., if you hire an attorney, get an LLC, a land trust, pay for addresses, maybe pay someone to be partner, that will basically eat away most of the cash flow left. I don't see how it's more effective than having a million liability insurance on each property. I mean if I have 10 properties for a total of 10 million coverage, I use property managers so they are also responsible... Has anyone heard of someone losing their 10 properties cos a tenant sued for a bogus slip and fall and got a successful judment against a landlord out of state for over 10 million dollars. Isn't it overkill?

I'd like to know if people who have 10 properties and more, what they do? Cos like I said everybody says get an LLC, but then everything gets complicated and expansive, when like you guys say with umbrella policies and common sense one should be protected. Plus since I use property managers, I don't see how one can hold me responsible for a slip and fall and win more than an umbrella policy covers. The only thing I like about the LLC is that my name does not appear directly with the property, but that's the only advantage I see, every lawyer says a single member LLC can be easily pierce anyways.

are you sure that commercial insurers insure duplexes and not just apartment buildings / or commercial buildings?
same with the banks? I have residential properties (sfh, duplex..) under an LLC, is that still commercial?

I bought this property for 11k, needs about 15k of rehab. I hold property under LLC. Property should appraise around 30k after repairs. First bank I called gave me a hard time because it's held under an LLC. Which banks do you guys use? any suggestions apart from hard money loans? I am not trying to flip but to hold for long term rental so I need low interest rate and long term for rehab loan.

After holding a few properties in my name, I decided to start an LLC for asset protection as it is recommended everywhere, so my latest property is held in that LLC.
I find it so unconvenient to have an LLC, insurers don't want to ensure rental properties under LLCs, banks don't want to refi LLC... why not just get liability protection and forget about LLCs? so some of you agree and hold all your rentals in your names, or if you have LLCs, how do you deal with banks and insurers?

well after going from breaking even on my first 2 properties and making some positive cash flow on my 3rd, I feel like now I am on the righ track. I just closed on a duplex in Indianapolis:
purchased price: $11000
Rehab costs: $14000
Total costs: $24000
Rents: $600 on each side for a total of $1200 / month for the duplex