All Forum Posts by: Jerry W.

@David Smith, yes in most states you can form it online, but will NEED an EIN for the LLC to open a bank account.

@Kyle Neff, I would strongly reccomend an LLC for doing a multifamily especially if you are doing larger than a 4 plex. I am not familiar with a requirement to have a corporate entity for commercial loans, but if you do a list of why you should not use a LLC to buy rental property they pretty much all go away when you buy commercial property. The negatives to an LLC are that you only get commercial loans, which usually have higher interest rates and shorter term loans than personal loans. Since personal loans are often resold to Fannie May or Freddie Mac etc. they are easier to get as most banks offer them. You might need a portfolio lender to get commercial loans as I have heard they are not as easy to resale. You should be keeping all the money separate from personal anyway just to make book keeping easier. I don't think it affects insurance rates too much either way. You will most likely have to co-sign the loan as well.

My fastest was next day.  It happened to be a property they had done a committment for only a few years before, so I am sure they spent less than 10 minutes on the chain of title.  I closed in 2 days.  Gal wanted to leave town to move closer to her daughter in prison.  My local title company is great.

@Christina Linn, it is fun to hear of other horror stories in investing hehe.  We were broke while I was a student in Laramie WY.  We couldn't even afford to rent really.  We bought a piece of land owner financed, I dug in the utilities, and we hired a guy to install a well and septic.  We moved a little trailer house on it.  When we left Laramie we rented it to help make payments.  The renters trashed it.  We eventually paid the trailer off and then then later the land.  I remember thinking how great it was after I graduated and got a full time job and we could afford to buy cheese, lol.

Good job on your deal @Christina Linn.  What kind of an interest rate did you manage to get?  The bank jumped up to 6.25% on my last deal.  I am trying to get them down to 5.75% but no luck yet.  We will see.  I just bought my first intentional flip property and have a deal to fix it up with a local contractor.  He claims he can have it ready by July for $40K, but I have severe doubts hehe.

@Ryan Holland, I know very little personally about CA law. It is my understanding that if you do almost anything in CA they will charge you the entity tax. Having it registered in WY won't help you escape the CA tax as far as I know. I would go over these questions with a CA accountant BEFORE you make any move to change things. Checking after a change may be unpleasant and very expensive if you guess wrong. I really like WY LLC laws but unless you are big enough to justify an LLC in Texas that is owned by an LLC in WY you might just register in Texas. The more layers you add the more expense you and time on book work you add. If you are netting $10 a month off your rentals maybe you need to move up to bettter protection, but if you are netting $1K a month in profit you might destroy your cash flow doing this.

Hey @Joey Zee, it all depends on what you want.  If you want good fishing some spots are better than others, if you want mountain areas there are good spots for that.  If you like skiing there are places for that.  If you need to be able to travel to the coast on a moments notice it will be hard to beat Cheyenne or Casper due to air travel.  There are several towns with commercial air travel but none with the sheer number of flights out.

Welcome to BP @Joey Zee.  I am a neighbor to the north.  I have only been mildly looking in Cheyenne due to the distance, but have been watching the Casper market a bit.  Cheyenne in my opinion has the most diverse economy and so is probably the safest.  Good luck on your investing.

@Tal Morgenstern, setting up a C corp in Wyoming is extremely easy.  It can be done online in a few minutes.

@John Boby, you might be setting yourself up for about $800 per year CA tax for every entity you create.  The added cost should be considered before taking that step.

@Frank Peraza, the way I would do it is have someone else form a manager managed LLC, hire a professional registered agent, and then operate from there. That will keep your names off the books. If you want you can have the WY LLC own the LLC you buy land in. Keep in mind that someone has to look at real estate, someone has to sign offers, buy insurance, hire contractors, interview tenants, sign checks, etc. Your name will be showing up somewhere.