All Forum Posts by: Joe E.

Congrats!

@Scott Smith Ok, tracking most of that so far. And again, thanks so much for your help!

From a work flow perspective: 123 Main St. generates cash flow, which is titled to 123 Main Street Trust & held by Child Series A.

How does it get from there to the operational Traditional LLC, and then ultimately to me (presuming at the parent Series/Trust)? Structure I understand now, it's just overall work flow.

Also, for the operational Traditional LLC, wouldn't I be self-employed at that point?

To better understand, I've been connecting with BP owners on their working experiences with Series LLC.

Most had the parent Series in a trust for the asset owning side, and then either had cells own assets straight or also included a trust with the cell. Public operations were in non Series LLC.

Between purchasing, refinancing or selling assets, they experienced challenges with the functionality of financing with both Series and non Series states which involves multiple communications between financial entities, lawyer, CPA, and buyer or seller.

@Scott Smith Ah, that clicked ... able to create Series in some states, which can be used to protect assists in all states per their legislation setup.

Thanks for your insight, and patience!

@Scott Smith Interesting... just recapping for my own clarification: each state as its own internal liability shield because of original LLC, but not every state recognizes Series LLC as part of that internal liability shield?

Wanted to get some informal BP feedback on legal entities, and realize this is not legal advise.

I wanted to learn more about setting up legal entities for REI. After finding a mention of a law firm which specializes in REI law here on BP, reviewed its site & scheduled an appointment. The appointment went well, learned a fair bit, liked the overall concept which was proposed and quoted: a solution incorporating traditional LLCs, series LLCs & trusts in the $7k range.

My concerns: Series LLC have been around ~ 20 years now, and can only be formed by some US states.  As I intend to purchase properties across various states (some of which are where Series cannot be formed), I am wondering about the legal uncertainty surrounding Series as well as the potential difficulties of using it across state lines.

Thanks in advance!

@Blair Knowles Truly,  thanks so much for the invite! Unavoidable work event for time though.

@John Warren: Thanks for the repy. I recently met an REI focused agent in VT who has built an area TK, and reviewing docs before any signatures or property. The main items are a Exclusive Right to Represent Buyer Agreement as a Non-Designated Firm (3% BA fee for 12 month contract, & who's licensed in VT), and the PM structure above.

Met with area PM & reviewing fee structure, and wanted a "BP spotcheck" to see if these costs are reasonable.

* Ongoing Maint Fee: 10% with min of $200/mo
* Leases: new --> 1/2 of 1 months rent with min of $1,000 // re-lease -> $200
* Maint/Service calls: normal business hours --> $50/1st hr, then $35/hr // Off hours --> $75/1st hr, then $50/hr.
* Project Management: 20% of total charges with $200 min.