All Forum Posts by: Matt Quock

Hey everyone,

I'm looking into a few multi-family properties in Rockford, IL and wanted to know if anyone has recommendations for real estate lawyers in the area.

Thanks a lot!
Matt

Awesome - thanks @Dwayne Wilson, @Ryan Swigart, @Craig Wilcox, and @Jeff Oberts for the recommendations! I'll make sure to reach out to each of those banks and also let them you know you put in a good word.

Hi everyone!

I'm looking at a few multi-family properties in Rockford, IL and wanted to know if anyone has recommendations for investor-friendly banks in the area. Much appreciated!

Thanks,
Matt

@Michael Albaum Thanks for the input! I realize there's not a simple / easy answer that is a one-size fits all solution - but I appreciate your feedback.

First off, my apologies if I posted this in the wrong forum.

I'm just getting started in real estate investing, but plan to focus on small to medium sized multi-family properties.

I have been doing a lot of searching and benchmarking from websites like LoopNet and Zillow, etc. From the basic financials typically provided online, I can run a simple analysis and weed out properties based on current and projected cap rate, GRM, the 1% rule, the 50% rule, cash-on-cash return, etc.

For those with more experience, what is the most important information to get next and the most important questions to ask? I know there are numerous details that all contribute to making or breaking a property and I could probably write a list of hundreds of follow-up questions (rent rolls, recent major repairs / capital improvements, historical vacancy rates, maintenance records, etc) ... I'm hoping to get some help prioritizing what to ask during this "stage 2" of deal analysis.

What advice do you have for follow-up questions when reaching out to real estate agents, after your initial deal analysis and screening?

Thanks a lot!

@Scott Smith If operating multiple "child" series under 1 EIN and/or 1 bank account, doesn't that risk losing the separation of assets in the case of a lawsuit? I was under the impression whether with separate traditional LLCs or "child" series in a SLLC, you need to be careful to keep separate bank accounts to show they are separate business entities.

@Scott Smith In this example, when you say "Next you would establish the Traditional LLC as the operating company." and "Then the Traditional LLC is just doing the errands for the rest of your structure." what legal connection does the Traditional LLC have with the Series LLC? 

@Scott Smith Thanks for the input! I'm a little confused about your description of the traditional LLC usage:

"They will form the parent Series LLC and then place the individual properties into separate child series (cells), that way each properties liability is separated from one another... From there investors will often use a traditional LLC (maybe two or three depending on their portfolio) to function as the operating company LLCs for the individual properties. The traditional LLCs hold the majority of the liability, but don't end up holding anything outside the liquid assets."

Can you help explain the purpose of having both a "cell" and traditional LLC for 1 property? This seems redundant to me.

Hi all,

I am hoping to get some clarification on how you can structure a Series LLC as a holding company that owns traditional LLCs within it. I understand a Series LLC provides the option for multiples "cells" that each act as their own LLC.

But... from what I gather, not all states (including WI, where I intend to purchase properties) have laws or cases that recognize Series LLCs or "cells" within a Series LLC. In theory, this could potentially eliminate any separation of liability between the "cells" within a Series LLC.

Is it possible / how would I structure a Series LLC (formed in TX, for this example) to accomplish the following:

1) Act as a holding company for traditional LLCs formed in WI for properties located in WI

2) Form "cells" within the Series LLC for properties in other states

In this example, would each "cell" need to register as a foreign entity in states outside of TX or only the Series LLC?

Thanks!
Matt

@Hideyuki Gojima That's a good point, it can definitely provide some peace of mind.