All Forum Posts by: Justin R.

I highly suggest Metroplex Homes out of Keller TX. I have invested in several states and they have been one of the best PMs I have dealt with. No nonsense, fair prices and professional.

@Eamonn McElroy & @Jennifer Gligoric Thank you very much for your detailed response. I definitely would have assumed the property manager would need to be registered with the Secretary of State due to their direct line of operating a business. Im just surprised the LLC holding the property (myself) would also need to be registered.

Thank you and stay safe during these crazy times!!

I recently purchased an apartment in GA with a LLC. My LLC is a California LLC. I was told by my closing attorney (GA) I need to file with the Georgia Secretary of State as a foreign LLC in order to do business in GA. Another attorney said it is not needed for real estate purposes (buy and hold rentals) as that is not consider "transacting business."

According the the GA SOS website Code Title 14 there are provisions to what "business" is. SOS Code 14-2-1502 subsection B,9 states.

(b) The following activities, among others, do not constitute transacting business within the meaning of subsection of this Code section:

(9) Owning, without more, real or personal property;

Does anyone have experience and a suggestion how to proceed? Thank you!!

Hello @Catherine Lacey. Be extra careful in this volatile economical market. Im not saying you should back out of a good deal,  but you should definitely ensure you have plenty of equity to whether a potential storm. The story could be negative cash flow depending on Covid 19 rental forbearance, or a RE market downturn. This is the time to be really diligent, and pursue only GREAT properties. 

@Kellan Martz With three partners in CA I would assume an LLC. You could form the entity yourself, and it would only be an annual fee of under 300 for each partner.

If this was solely in your name, and you had several, I would point you toward an attorney who specializes in forming Delaware Statutory trust. These are actually great for long term holdings offering anonymity and asset protection without the 800 dollar fileing fee.

Hello @Lloyd Silver. I too am from CA (Los Angeles area) and personally invest in Grand Rapids. Grand Rapids has been hit hard by OOS investors in the last five years, affecting the cost most notably on MF's. There are still opportunities, but personally I feel they have to come from networking and off market/pocket deals. I have done a few BRRRs in GR and more often than not, received all my money back in hand after refinance.

Here are the things I enjoy about GR

1. Its a cool city. Lots of gentrification, Coffee shops, Breweries, nice people, and just a neat town.

2. My PM team there is great (United Properties of W.Michigan). They are a one stop shop with agents, PM, and "in-house" maintenance staff.

3.Economically the city reinvented itself after the loss of US based manufacturing. GR is a town with a lot of educational institutions, and medical research. I believe the market will remain stronger than the majority of the midwest for the long term outlook. 

Best of luck!

@Rick Sarouk did you find someone?

@Kevin Chan

Without looking back at my records, I believe it's somewhere between 600-800 for each child series to create. Unlike a LLC, the DST cost is a one time thing, no franchise filling costs year after year.

This is a topic of controversy. Here are my thoughts....

Pro of using the listing agent--

1. Your closer to the "horses mouth". You will know the sellers intentions, more precisely what the seller wants (additional to asking price), less turnaround time for communication.

2. Listing agent is gonna push for you. They get a bigger commission.

3. Possibly a reduced cost because perhaps the agent offers a reduced commission to seller.

Cons of using listing agent--

1. Lower representation (conflict of interstate w/2 party, overly motived to get dual commission)

2. Ethical dilemma if you have been communicating with a buyers agent.

To sum things up, if you are a newer investor and want to limit risk use a agent you have formed a relationship with. If you are risk acceptant then by all means call the listing agent directly, just make sure you do plenty of due diligence to pick up the slack.

First determine your goals. Do you want a high cashflow market or appreciation? After you have clarity on what kind of investments you are targeting you will be more well equipped to make your decision.

Although your target market is important, your local "Team" is your foundation and the priority whenever investing from afar.