All Forum Posts by: Kesava Chunduri
Kesava Chunduri has started 1 posts and replied 7 times.
Post: SFR owned on my name, Iooking to use LLC for all the Financials!
- Posts 7
- Votes 2
Guys - I need a quick clarification:
In Residential Lease, if we put the Property landlord as "Landlord Name dba LLC name"; this should take care of everything and LLC can be used as a property management company going forward, correct?
Going forward, I will be using my LLC Bank Account to drop the checks from the tenant and will use the same LLC bank account to pay for any repairs, taxes, etc.
Please suggest, if there is any other paperwork that need to be done to handle this?
Thanks in Advance for your help!!!
Post: SFR owned on my name, Iooking to use LLC for all the Financials!
- Posts 7
- Votes 2
@Bruce Lynn
Perfectly makes sense. My plan for future is to buy 2-3 rental properties and bring all of them into the same LLC and use different LLC bank accounts.
That is the only reason for me to try on using an LLC account now.
Post: SFR owned on my name, Iooking to use LLC for all the Financials!
- Posts 7
- Votes 2
@Drew Sygit
Thank you for the information.
My lender is Quicken Loans/Rocket Mortgage.
This is a Brand New property and will be tenant occupied, will not be owner occupied for the first 12 months. With that in mind, is there any other option left for me to transfer the deed to the LLC without triggering due on sale clause? Please advise. Thank you!
Post: SFR owned on my name, Iooking to use LLC for all the Financials!
- Posts 7
- Votes 2
@Harry Gamble - I tried it out with several, but it didn't not work earlier. I was recently able to find a local bank (Amegy Bank) in Texas who mentioned that they are ready to do the title on LLC. But, I am still making sure that they don't change their words at the end. So, if this works well, my second property that I am currently under contract might work with the title directly on LLC.
Post: SFR owned on my name, Iooking to use LLC for all the Financials!
- Posts 7
- Votes 2
Originally posted by @Harry Gamble:
@Kesava Chunduri Why not deed the property into the LLC name and get you name out of it completely? Then direct leases from LLC to tenants. Assuming you are managing yourself. I know you said you weren't worried about personal liability, but I would think getting your name out of the situation would help with that, if you're going to work it through an LLC why not take advantage of the liability protection.
Harry - 100% valid point. Here is the reason why I was not able to do it at the moment.
I was not able to find a lender who was ready to allow titling the home on LLC, tried with at least 10 different lenders and I heard the same response. So, I have to leave the property on my name and close to home. I even asked each one what happens if I transfer the deed to my LLC, post closing and a common answer I got was "Due on Sale", if I do that.
So, for the time being, I purchased an umbrella insurance to cover my base.
But long term plan is to keep searching for lenders who would allow to transfer the deed to LLC, refinance with them and make the lease straight forward thru LLC.
At the moment, I am trying to figure out how to still keep using this LLC partially and keep all Financials theu this LLC.
Pleas klet me know if I am thinking in the direction or suggest a better route. Thank you!!!
Post: SFR owned on my name, Iooking to use LLC for all the Financials!
- Posts 7
- Votes 2
Originally posted by @Greg Scott:
I've had third party property management. When you hire them to manage your property, you sign a contract with them. Then they manage all interaction with the resident.
You would want to mirror that setup with your LLC. Treat it like it is an independent business. You sign a contract with your LLC.
Remember, you now also have two roles. If you are meeting with the resident, you are now doing it on behalf of the LLC and not you personally. This can sometimes be very beneficial and help defuse difficult situations. If a resident is asking for a special favor, you can say "I need to go talk with the management team of the property management company". If you decline their request, it was "management said this is way outside our policies and we could not accommodate your request."
HI Greg - Thank you so much for your response. That perfectly makes sense. I question though. Do I need to do additional paperwork stating that my LLC will be my property management company? If yes, trying to figure out where I can find some samples to do that.
For lease contract, everything will be taken care by my realtor while leasing, but I am interested to know if I need to do extra paperwork to allows my LLC to do my work on behalf of myself.
Thank you so much for the great advice.
Post: SFR owned on my name, Iooking to use LLC for all the Financials!
- Posts 7
- Votes 2
Hello BP community - Good Morning.
I am new to Investment space and recently purchased a Single Family Residence that I am trying to rent it out.
Property is on my name. But I am looking to use a newly formed LLC to collect rent and payout every costs (Property Taxes, Repairs, Insurances, etc) from this LLC.
This is to simply keep all Financials separate from my personal using LLCs Business account, not for tax saving purposes or liability protection.
Few questions:
1. Do I add my LLC as property manager on the lease contract requesting the tenant to write checks on the LLC name directly?
2. Do I need to lease my property to the LLC for any reason and then do I need to sublease this to the tenant?
3. Any other better way to handle this?
I thought #1 is simple and a better approach, please correct me if I am wrong.
Please suggest a better way to maximize the usage of my LLC.
Thanks in advance for your responses!!!