All Forum Posts by: Jerry W.

@Clint Coons, the entire thing the poster wanted to accomplish was to have him be part owner, but not be listed on the mortgage. I understood your post to be here is how you have a half ownership but not appear on the mortgage. No lender I am familiar with will ever want to have a mortgage on the property where there is an owner who is not on the mortgage. Are you familiar with any bank who want to have a mortgage on a property from only one half of the owners? I understood your answer to be here is how to confuse things enough that the bank won't catch it. Otherwise what is the point of your answer? If a bank learns that someone is listed as half owner but is not on the mortgage I would imagine the odds of calling the loan are upwards of 80%. Do you disagree? Not calling the due on sale clause is different if you pop it inot a wholely owned LLC or trust, but actually add an owner, I think the odds increase dramatically.

If you are doing a transfer to hide the one half ownership, according to Letitia James, that is felony fraud. I do not agree with her, but the daughter obviously had to fill out the loan application, and and the personal financial statement. If she lists the property that only has her name on the mortgage as only being owned one half by her, the bank will call the note. If she hides it, it becomes a felony. Most banks do not get excited at moving into an LLC, I have seen maybe 3 call a note over it, but another owner not on the mortgage and I have seen notes called well over half the time.

Wouldn't it just be easier to have an LLC owned by both apply for and get the mortgage? Why all the entities. If deception is the intent, to obtain a loan, technically it is a felony. Do you disagree?

BY the way what your company charge to create all of those entities and file all the returns needed to file taxes on them?

SO @Clint Coons, if they want to buy several houses like this what happens when they update their personal information yearly with their financial statement and tax returns?  The LLCs will show up on their personal return, as well as their individual ownership interest.  The personal financial statements require them to list every entity they have an ownership in as well as the percentage.  That would show the whole fake facade and possibly be cause for the due on sale clause being invoked.  Why not just be honest?  You could lie on your financial statement, but that is how Trump got his felonies.

@Anthony Pitruzzello, I would not use this method to purchase property.  The multiple entities, the yearly reporting requirements, the cost of setting the entities up, the book keeping in keeping them sorted, the registered agents, the FinCen reporting, well you get the idea.  It is easy to worry about so manyn things.  Your main worry should be finding an investment that actually makes ense, not worrying about minute details for one small part of your plan.  You need protected, but you don't need to live in an armored car.

@Eugene DuShawn Smith, welcome to BP.  Tough question.  If I was starting over again I would get aggressive at looking at properties.  The first question is can I buy more properties that will cash flow?  If not then doing either option is out.  The next issue is taxes.  If you sell to buy other properties you will be looking at capital gain taxes.  If you intend to sell consider a 1031 transfer to avoid taxes if possible.  You might be able to get into a duplz or 4plex and increase your cash flow, or even into a single house with a much higher cash flow.  Normally I try to never sell a house if possible to keep growing, but you are pretty light on cash flow.  If your loan is a 30 year and you are only 7 years into it, it may have a ton of equity but taking money out will result in negative cash flow even if you extend the loan back out to a 30 year.  Any chance you can increase rents or decrease costs a little get positive cashflow here?  I hate to see you stretching into another rental with this one being so precarious.  Best of luck either way bud.

@Colby Calagna, welcome to BP bud.  I started doing STRs about 9 years ago and did horrible the first year or two hehe.  I gradually learned more and have expanded to 6 now.  I also dabble into mid term rentals.  I am in a small town in the middle of Wyoming, but would be glad to giver any advice I have.  I doubt my area would give me much expertise in other places.  Here is my poor attempt at advice, and I am sure it will be worth as much as you are paying for it.  On your first house don't think that you have to buy everything new.  Often slightly used unique items are greart and cost only 20% of new, next try to make a cool theme if possible to make your house stand out.  Next make sure it comfortable and extremely clean, a lot can be forgiven, but seeing hair from other people or dirt is a huge turn off even if the house is beautiful, next always be kind and gen.uine, people can tell.  Lastly keep extras of almost everything.  At least 3 sets of sheets and linens.  You can change out quickly on a same day turnover, if one set of sheets is torn or damaged beyond use it gives you a few days to pick some replacements.  You should clean a few times yourself even if you plan to hire professional cleaners.  Good luck bud.

@Anne Christensen, I do not believe you need a WY trust.  I actually have very little comfort in Trusts providing much protection.  Your LLCs provide a lot of protection.  There are some types of trusts that bring a lot of protection, but you generally lose control of your assets and they are managed by someone else.  Now having a trust to avoid probate, care for young children or folks not ready to inherit large sums of money yet are very good reasons to have trusts.

@Stephanie Medina, you need to scope out your competition.  All areas can have different vibes as you put it.  I furnish about 80% of my properties off of facebook market place and places like that.  You can often find unique items that catch the eye.  However my area is in a small town in the middle of Wyoming.  Your time is also worth a lot and if it is a long ways away that makes it harder.  I am always looking for unique items even if I don't need them.  All of my linens and towels etc. are bought new of course.  Wayfair gets a lot of use.  So not much advice, but feel free to experiment and ask your guests to give you feedback.  I have been surprised how little they care about things other than comfort.  Often little cute items impress as much expensive items.  Good luck and congratulations!  Keep us updated on your journey.

@Samir Haddad, where are you located at in Wyoming.  I travel the state a little bit and would be glad to chat sometime.

@Laurent Urich, Wyoming does not have an income tax.  I also just filed an annual renewal statement for a Wyoming company with the Secretary of State.  It had gross income over $500K last year, gross valuation of 5 million, and the annual filing fee was $90.00.  Wyoming is very investor friendly.

@Laurent Urich, I am an attorney in Wyoming hehe, but I am not interested in doing any more work, I want to retire actually. I am answering because you don't need a Wyoming lawyer to help you. Any attorney who does this kind of work can help. It takes literally 10 minutes to file a corporation or LLC in Wyoming online. Have one in your state help you. All the real work can be done in any state. Set anything up they recommend then just get online to create the Wyoming part.

Ack, I see you are in Casper.  Send me a personal message and we can talk on the phone for a few minutes to get you going in the right direction.  Worry more about the deal than the protection right now.

@Stephanie Menard, I would complain to the prosecutor's office.  Make sure that you learn who the elected official is in the office.  Then say you want to talk to that person, and find out if in fact they are OK with theft occuring but saying you have to have a contract saying they cannot steal from you before they will prosecute it.  let them know you want their official answer for posts and information is posted on social media and the newspapers before you post anything so they have a chance to review it.  Unfortunately that doesn't get much attention if they are 3 years out from the next election, but it might.  Now if elections were this fall it likely would get attention.  If not from the person in office, then definitely from the person running against them.