All Forum Posts by: Jerry W.

@Nat C., I am not familiar with FL law, but it is my understanding that the Wyoming LLC, by simply owning property in the state is doing business there. If simply not being the one renting it out why not just have 2 FL LLCs? Your LLC that is managing the property must have some authority to sign a lease on the property right? How will you be able to buy insurance if no interest is owned in the property? I am perhaps not understanding, but you need a document to show you have the legal right to control a property before a court of law will let you file an eviction. That document to control the FL property is also doing business in FL. I would strongly suggest that you register the legal owner of the property in the state where it owns the property. Thank you for the kind words by the way.

@Nat C. The problem with not registering an LLC in a state where it owns property is that you have no registered agent to receive service so most likely the secretary of state would be served and you would not know that you have been served and you could have a default judgement against you and not know it. Also you cannot legally file an answer or counterclaim even if you learn bout the lawsuit because you are not licensed to do business there. Your protection from liability you want is useless. Do it right and legally. If you are not going to follow the law in registering your LLC what makes you think you will get any protection from it? Use one WY LLC to own all of your other LLCs. The $50 annual fee should not deter you from doing it the right way. By the way buying a property in another state is doing business.

Thanks for sharing bud.

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@Jonathan A.I have the umbrella with Farm Bureau.

Interesting information.  I have had a VR for 3 years now and always allowed pets so I have no comparison.  So far other than extra pet hair and the occasional wet dog smell I have been lucky.  I have a lot of LTR and allow pets in most of the SFRs.  I can usually tell what pets will be a problem by watching how the person interacts with their pet.  I rarely have a problem with anyone who takes the time to train their animal.  I will have to look into charging a pet fee for the extra work of cleaning up outside after pets.

@Account Closed is this a different property than what you posted about last time?  You need to review your market so well that you know what will be a bargain when you see it.  If it is a good deal go forward on it as fast as you can.  Don't let indecision end up being your decision.

@Joshua McMillion welcome to BP bud. It literally takes 15 minutes and a credit card to form an LLC on the Wyoming secretary of States website. It costs $103 if you use a credit card. If you truly don't want your name associated with it there are hundreds of companies who will file for you and for about $50 a year be your registered agent. Just google it online and watch them form huge lists. Of more importance is to have some kind of operating agreement. The most important thing is to learn how to keep corporate formalities. You must do business in a certain way. Take your time to read up on it. Keep a separate checking account, don't co-mingle money, keep corporate formalities, do some minutes, keep up on your annual filing, don't under-capitalize your business. You can achieve some anonymity by having others file, but in mu opinion it makes it hard to invest. For example if you are not listed as a managing member who will sign your tax return? Who will sign your checks, your purchase offers, your loan documents, your leases, your receipts, etc? Just my 2 cents, good luck on your investing.

@Account Closed, welcome to BP bud.  I have both long term and VRs.  I think you have heard fairly loud and clear that a pure investment this not a very good one.  It is also clear that what you want is to buy this property.  There are some things that I like about the deal.  First if you plan to buy a personal residence anyway, and you would pay about $600K then the investment part of this deal is only the $300K increase in price.  The VR license is probably worth a fair bit.  You also seem pretty confident that the property will appreciate in value.  You didn't elaborate on that much, but I would like to hear more about that.  As a pure investment this is not a good deal, however you really like it and want to buy a home, so ask yourself are you willing to pay the $300K more and put up guests for 4 months for the potential income?  While I would not invest in it myself, that doesn't mean it is not right for you.  It is your money and your future.  How confident are you that values will go up?  How confident are you that you could get your money back out if you end up hating the VR business?  If you are confident for good reasons on the last 2 questions it might be the right choice for you.  Keep in mind that if you use the home for a business that you will only be able to claim the primary home exemption on a future sale to part of the sale price, not all.  Either way you must do what is right for you, but do it with your eyes open and an exit plan.

@Brandon Redfern, the laws in each state can differ a lot. That being said I have rarely seen an acceleration clause being activated over a transfer to a wholly owned LLC. @Stan Sugarman is dead on point in that if you transfer to a third party they will be aggressive over that.  In the situations I have encountered with banks and acceleration clauses they usually tell you transfer it back if it makes them uncomfortable.  I have found that banks charge about 1% more interest on loans the entities than to individuals, and the loan terms are usually much shorter and are adjustable rate mortgages (ARMs), that usually come due between 3 to 5 years.  I have actually never found an attorney try to get around an umbrella policy.  They very much want to get into the huge deep pocket they afford.  They also try to name you personally just to put pressure on you to settle.  I was unaware that a Limited WD will not negate title insurance.  I just assume that if a title issue did arise I would simply have my current entity sue my previous entity or me, then invoke my prior title insurance policy on it's behalf.

@Erin Spradlin, I thought I would provide my own update.  A Lot has happened in only 2 weeks.  My state has opened back up and moved to phase 2.  I actually saw a massive surge for the month of June.  This June was better than June of last year which was was a very good year I thought.  The local motels have recovered a bit, but are probably only 60% of last year.  However my bookings for the rest of the summer are still soft.  I have a lot of folks who are maybe uncomfortable in booking for long term as they don't know if we will get a resurgence, or maybe everyone just wanted a few days out of the house in a solitary setting, not a crowded motel.  We are struggling a bit to meet dual turnovers due to increased cleaning and sanitizing, but that's OK.  Overall I only have 4 vacancies for the month of June, but that is in my best unit.  The other unit always lags behind.  Well I hope you are seeing a major increase as well.  Best wishes.