All Forum Posts by: Ghassan Jabali

Hello Hardik,

I hope you're doing well. Generally, a 50/50 partnership LLC can work to create business protections therein, but the optimal structure could change depending on what state the property is located in. If you are also concerned about charging order protections and anonymity, you may want to consider having a partnership LLC in a state like Delaware, Nevada, or Wyoming, and then for it to own the in-state LLC--again depending on what state the property is located in.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hello Richie,

I hope you're doing great. There is a lot of different perspectives and strategies in deciding how much you plan on putting into a property to renovate and rehab it compared to how much you expect to earn to cover costs for the rehab, closing fees, and gain a profit. It may ultimately depend on how much value and profit you expect to gain from those rehabs. As an example, renovating costs may be $10,000 to increase the property value by $20,000, with $5,000 in closing and other costs, could justify the time and cost if your goal is to make $5,000 profit if that is what you are aiming for. Compared to $40,000 to add $100,000 of value could give you a larger windfall. It may all depend on hard costs and projected profit to see if it is worth it or not. Either way, we definitely recommend doing renovations in some kind of entity structure, such as an LLC or Corporation for asset protection and tax mitigation.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hello Christopher,

I hope you're doing well. Both have good merit to them, however, it may depend on what your overall long term goal may be. Many individuals, especially with a 3% mortgage, may want to hold onto the property and keep it for the stable income and to grow their portfolio. Doing a HELOC can help you keep your rental property while acquiring more assets during a time of market uncertainty. We would definitely recommend though making sure the rental property is in a Trust or LLC if you are planning on keeping it, as well as moving your personal residence into a personal residence trust for more anonymity as you plan on house hacking it.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hello Robert,

I hope you're doing well. Generally, we do see both but also the acquisition of raw land does seem to be something happening more due to market trends and the limitation on construction loans. Investors may be preparing for developing in the future, holding for one year for tax mitigation strategies. However, they're always making sure to acquire the property and hold the property within trusts and LLCs for asset protection and anonymity purposes.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hello Michele,

I hope you're doing great. Generally, in your situation we may recommend having a partnership LLC for the ownership interest of the RV Park or Campground. The LLC would be owned by yourself or preferably a Holding LLC that has Charging Order Protection and their interest would be the same. The Partnership LLC would need to have strong language in its Operating Agreement for asset protection as well as outlining return on capital. We would be cautious on how you advertise or seek investors so that you don't trigger SEC laws for accidentally offering securities for the partnership. We would also try to do any background check on anyone who you may plan to work or invest with.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hello Stephen,

We're happy to hear that it was a learning experience. Hopefully it can help grow your knowledge base so you can recognize some signs better so that you can recognize minimal profit properties in the future. If you don't have one already, I may recommend having an LLC or Corporation to help with giving you some business deductions to help increase your profit margins.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hello Kedric,

That is great to hear! Congratulations on closing on your first probate deal. I do hope you have good luck with the next steps for rehabbing. If you have not considered it already, I would recommend looking into LLCs and/or Trusts for the property ownership as well as the rehabbing to isolate out liabilities, especially as you go forward with the long term renting.

I hope everything works out great and the momentum keeps going.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hello Catie,

I hope you're doing well. Generally, I always view things as trying to focus your attention on what you do best and allow others to do the same on your behalf. Hiring another party to do the cold calling for you can allow you to keep focusing on what you like to do or what you are good at, and typically they will be more familiar about any laws or procedures on handling cold calling in different jurisdictions. Some cons would be that you will be paying for services, which will be an added expense for you, and you also will not learn or get hands on experience with this particular area. Additionally, many agreements with contractors do have indemnity clauses and may have less than favorable terms when working with them.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hello Adam,

I hope you're well. I'm sorry to hear about the situation. That is frustrating. Some escrows and title companies will require that a Trust have a bank account and that they can only disburse the funds to that Trust account per their internal policies. We have heard of it happening every now and then. If they are refusing to disburse the funds to you, then you could open up the trust bank account, using your own Social Security Number, since you are the Trustee of the Trust.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Hello Chris,

I hope you're having a good day so far. It's great to hear that you've been educating yourself and trying to look at the hard numbers. The numbers are important as you always want to anticipate unexpected costs and see what wiggle room you may have to ensure that you are making some profit. Real Estate is usually a good investment for long term wealth, especially with rentals as property value and equity increase over time.

With regards to your concerns. Many investors that live in California have branched out of California because of how high prices are and have had success. I have seen same funds they use for one California property be used for two properties in different states. And with the slow exodus out of California, demand is growing for people looking to own and rent in different states. You did recognize the big concern with needing to rely on an out of state property manager or contractor, but that is normal for out of state investors and they can still be successful.

With regards to the next 100 hours of learning, definitely recommend looking up market trends for real estate and what cities are growing versus having stagnant populations. You can also take real estate courses to keep sharpening your knowledge base. I would also recommend learning more about asset protection principles with LLCs and Trusts, including Charging Order Protection if you plan on venturing outside of California with your investments.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.