All Forum Posts by: Jatin Shah

Sarah, 1. stop posting information there. You might say something that can go against you. 2. And this goes for everyone, think about a personal umbrella policy to cover you. 

So I recently heard of someone through my Realtor that has obtained approximately 100 rental properties.  After visiting this site and speaking to others I can believe this.  My question is, how is it possible to get this much. Obviously there is some private money involved.  

So if you know if anyone like this, or you are someone like this, how did you do it? Where did you obtain all that financing? 

Thanks,

Ken, sorry for the delayed post. Yes, a Will would transfer property. You can achieve your preferred transfer both ways.  The difference is the following.  The Will would need to be probated in court.  That is what is referred to as the probate process.  If you haven't appointed an executor in your Will, the court will appoint someone.  Thereafter all the assets are gathered and distributed per your will.  If you were in Nashville, it wouldn't be a big deal. Probate is economical and there isn't too great a back log at the courts. 

But, you're in a situation where you're living in one state with property in another. The executor of your estate would need to open an estate in NJ where you live, and whats called a ancillary estate in MD to handle your MD property.  NJ courts do not have jurisdiction to distribute MD property.  This can get pricey for the estate. 

Placing the property into a revocable trust, you can by-pass the entire probate process (if everything was done right).  Upon your death, the property would pass to the beneficiaries of the trust.  

One of the other benefits (if this is a concern of yours) of the Revocable trust method, is that unlike the probate process, this is not public information.  If you have your will probated, all that is typically public information (of course, specific jurisdictions may limit what and how much to disclose - only an attorney practicing in that jurisdiction could answer that). 

Good luck!!

Hey Kenny, I'm originally from Northern NJ.  Never been to Delran however. 

Re: your question.  Unfortunately there is no one right answer.  Normally, if you live in one state and have property in another, a common thing to do is to transfer the out of state property into a revocable trust. The biggest benefit of this is, should something happen to you, the property passes OUTSIDE of probate and to whomever you have designated in the trust.  It does provide some asset protection but not what you are trying to achieve.  

Then if you want to transfer the revocable trust into the LLC...this would provide the asset protection you desire. However, all states are different and they have all different rules. Since the property is in MD, ask a local attorney about this scenario and the trust rules as they apply in MD.

Oh and one more thing. You also want to make sure that you're opening up the LLC in the proper state for tax purposes. Becareful with mortgage due on sale clauses. Normally I don't see lenders doing anything when the investor transfers to an LLC etc., but keep it in mind.

Good luck!

Hey Barrett, i'm also a newbie here. I practice real estate in Nashville and also have a tax background. One of the primary benefits of putting property into a LLC is protect yourself. With that in mind, do try and venture out yourself. Hire someone locally through referrals and have them do it right. This is really a 2 step process. One is creating the LLC. Some states make it very easy and all you have to do is go online and fill out some information. But there can be wrinkles from one state to the next. You'll also need to set up a tax id from the IRS website. You can do this yourself too without much problem, but if there is anything you are unsure about, I highly recommend hiring someone. Second, you have to transfer the property from yourself to the LLC. You'll need to fill out the deed. This is not very difficult, but you want to make sure your doing it right. God forbid you put the wrong legal description down. While this is not a fatal mistake, it's more paperwork and headache if its uncovered later on when you try to sell.

Question, is there a mortgage? I'm still new to the whole REI industry. But normally, banks have a due on sale clause that they can act on if you transfer the property. Check it out and discuss with others what their experiences have been with this.

As far as multiple properties under the same LLC. You can. The question is whether you should. I recommend you don't. You are exposing the 2nd property, if liability stems from your other property.

Good luck! If you need someone in Dallas/Ft Worth, let me know. Thanks,

Jatin

Nat, thanks for the feed back. That's very helpful!

Hey all, I'm relatively new to this and I wanted to bounce a possible deal off of you. There's a bank owned house (just under 1,100 sf) selling for 99K, but needs at the very least, new carpet/flooring and paint, refaced cabinets.  I'll be seeing it later this week to get a full run down. 

Most of the homes in the area of similar size are on sale for $140-$150.   Assuming the above items are all I need to do plus some misc. aesthetics what type of cost am I looking at?  

Carpet/Flooring: $2,500?

Paint: $3,000?

Refaced Cabinets: $1,000? 

Other (Landscape etc.): $1,500

Does this sound like a good starting point? Thanks for your help!!

Jatin

Hey everyone, I'm looking into my first rental property and I will be using a property manager. However, I wanted to know what a fair deal would be? 

One of my relatives has hired a PM for their rental.  They charge 10% of revenue plus, $400 when they find a tenant.  Then $100 if that same tenant renews.  There are other fees, but these the ones that I wanted to bounce off of you guys.  

Thanks,

Jatin

@Daniel L. I'm mainly looking into single family homes right now, but I want to work my way to duplexes, quads etc. I wouldn't say anything fell apart, but its just a matter of actually pulling the trigger and doing something.   I would love to have coffee or something.  I will PM you once I know my schedule a bit better for the following week.  Hope to speak to you soon. 

Thanks @Bryan L. How's the market out there? 

Hey all, i'm looking to connect with anyone in Nashville metro area who's ever done a tax sale in the area.  Coffee/lunch on me!