All Forum Posts by: Jeff Rogers

@Connie Tang I think going with an umbrella policy makes sense for the first handful of properties, and that's my approach so far. In one of Brandon Turner's how-to-real estate books he gave the example of a new investor who really wanted to find his first deal but was struggling to save up enough money for one....yet he had a multiple LLC structure ready to go but was costing him money. The structure was creating financial and mental barriers to even get the main asset in the first place. I say wait until at least 2nd or 3rd property before setting up an LLC, and then transfer the deeds.

@James Thiel Yes! I've heard similar, one property per LLC. Layer in the parent LLC and nobody knows what you're up to, haha! Its amazing to me the possibilities of how to structure a business.

@Rumen Mladenov Yeah, the magic number 10, haha! Curious what the advantage of a commercial loan to a sole proprietor is versus residential loan? I'm guessing the loan is based on income revenue of the property versus personal credit and cash on hand?

@Connie Tang I'm not an expert and still a new investor...but I'll share what I know so far. I think LLC formation and timing depends on your tolerance for risk. My bank has said "after 10 properties you should create an LLC." But then I know of veteran investors of 20+ years that have never created an LLC, just had properties in their name and ran their business/investments as such, and never had any issues. As others have stated, liability protection is the main benefit of an LLC, but you can also create an LLC structure for identity protection. This is a bit more complicated, and not for everyone, but like I said, depends on your tolerance for risk. For example, someone has 2 properties in RI and they don't want anyone to find out through public records that they own those properties. They create 2 LLCs, one in WY or NV (and/or MA i think) and one in RI. NV/WY LLC owns the RI LLC who then owns the two properties. WY and NV have great privacy protection laws so your name can't be found tied to the properties in RI. I'm way oversimplifying it but that's a basic example for identity protection using LLCs. Good luck!

I'm considering ordering a cost segregation analysis on one of my properties, maybe a 2nd.  Are there any engineering firms in MN that do this work, or best to look for national firms?

Any idea if I can get a cost segregation analysis on a house-hack type property?

@Matt J. Nice!  Yes, let me know when you're here next.

@Matt J. Good problem to have! If the market was what you were predicting (original ARV of $245k), would the same sell/hold question be on the table? If you sold, would there be any time pressure to do something with your profits if you sold at $275k?
If you sell and have time pressure to park your profits, I would think about your deal flow. If you have strong deal flow and it would be fairly minimal effort to find the next deal, I say sell the property. If deal flow isn’t very strong and you have take time to go get a deal and your making decisions in a vacuum, I say hold your property. Good luck! Let us know what you decide!

I have a few properties and now want to create some liability protection and privacy by forming an LLC structure with either NV or WY as a parent. Once I do that I need to transfer deeds. Is this possible to do with one firm? Any advantages in going local vs. national firm?

@Tim Swierczek Thanks!

@Brandon Anderson Nice work with 3 properties in Virginia. I have one property in Duluth, single family home, so I'm getting started. Hoping to expand my portfolio throughout the year.

@Brandon Anderson, are you new or established investor in Duluth/Iron Range area?  I'm located in Duluth and have a rental property here. I'm always interested in hearing about other northern MN markets.

Hey @Tim Swierczek, if you don't mind sending me the info as well that would be great.