All Forum Posts by: Jeff Rogers

@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.

@Michael Schraepfer  Cool idea. Are you building and selling or building and holding?  If the location is right, I would think it would generate rental demand. New construction duplex would potentially be a "safer bet" for an out of town investor in a market with many older buildings that are potentially riskier from a maintenance standpoint.  Looking forward to hearing more!

Hi @Jillian Peterson, welcome to Duluth! I recently moved to Duluth as well and am getting into investing. I close on my first property this week! I've found much of what others have said to be true about housing appreciation and heard it time and again from local realtors about how high some houses get listed for. The city did move away from limits on rentals per block a number of years ago after mixed results of the regulation. I've noticed some houses listed on the MLS will have been lived in as a primary residence but will maintain their rental license, so that's a bonus. Rental licenses in Duluth are good for 3 years before needing to renew, so where a property is in the cycle is something consider for initial costs. Happy to connect to chat more. Good luck!

@Matt J. Awesome question. I'm under contract to purchase my first rental property in my personal name. I do plan on setting up an LLC structure in the near future. I was getting a little panicky since I'm aware the loan could get called due if I transfer. So I asked my current loan officer the hypothetical scenario of transferring to an LLC if the loan would get called due or if I should just not tell him/the bank. He basically said it's a little don't ask-don't tell and elaborated as long as my ability to pay doesn't change, there should be no issue. The point about refinancing from one of the previous posts is interesting though.

I plan to set up an LLC in WY with sub-LLC in MN for improved asset protection from just a MN LLC. I was pitched a pretty complicated asset protection scheme but it wasn't cheap to set up, so naturally, I opted to get an asset to protect as the first step.