All Forum Posts by: Kyle Soderman

welcome to BP @Chris Salveson 

Welcome!  Good to see the Minnesota population on BP growing!

welcome @Raj Gandhi ! I love the Woodbury area. I hope to move there or Burnsville when I am out of school. I will most likely be investing around the cities as well.

welcome De Juan! Good to see other Minnesotans joining. I am living in St. Cloud right now but hoping to start investing near the cities. 

@De Juan Washington 

That is exactly my intentions, planning for the long haul. Thank you for your input @Bill Gulley . I have heard many different people say it is well worth it to get your realtors license. It is something I have not looked in to yet but plan to in the near future.

Could you expand on some of the advantages of getting your realtors license? (more then just the obvious "you will learn a lot about real estate".) 

Thank you @Hattie Dizmond ! I have never heard of a series LLC before. Do you know if you can create an LLC then later on turn it into a series LLC. So if the new MN ammendmends allows series LLCs then I could change the LLC to a SLLC.

Currently I am not looking to form the business entity yet since I am strictly researching Real Estate. In the near future when I am finishing up my business plan I will be looking to meet with a real estate attorney and hopefully he or she can inform me more about MN laws/ regulations.

EDIT: I just read more in debt on that second link you posted. So from what I understand, your management company is the one that you would be marketing, making deals, etc. and the holding company is just there to have possession of your properties?

I had just finished reading a post that was linked to the ultimate guide to real estate investing ( http://www.biggerpockets.com/renewsblog/2009/03/18... ). The post talked about how you should have a business entity (lets say an LLC) and also insurance to protect your personnel assets from any claims resulting from a mishap at one of your properties.

Lets create a fact pattern, bare with me. John owns an LLC with 4 properties (properties A, B, C, and D) under the LLCs name. John has the proper insurances and the LLC was properly formed with all the correct paperwork. A railing on the stairs breaks in property-A. Tenant-Jill files a lawsuit against the company because the broken railing caused Tenant-Jill to break her arm. The claim ends up exceeding the insurance coverage.

My questions are:

1. Are properties B, C, and D at risk because of Tenant-Jills claim?

2. If they are at risk, is it viable to make multiple LLCs to separate your assets? For example; have properties A and B under LLC-1 and properties C and D under LLC-2.

Any help is greatly appreciated! Thanks in advance. 

@Jean Bolger  Well the problem is not that they are not entrepreneurial but that they are very entrepreneurial. Mainly my mom who owns her own landscape supply business that I have worked at my whole life. I believe she is the one that is my "entrepreneurial inspiration". 

I want to be sure to have a good knowledge and understanding of the real estate business before disclosing my intentions.

@Joshua Garrett Listen and do @Hattie Dizmond 's advice. Also read this short post I found from The ultimate beginners guide to real estate investing. http://www.biggerpockets.com/renewsblog/2012/5/13/...

@Account Closed First you have to decide what type of entity you want your business to be. Sole proprietorship, LLC, partnership, corporation, s-corporation. From what I understand an LLC (limited liability company) is the most popular for real estate investors.

But before anything you should make a solid business plan and from there you can think about creating your business as an LLC, if that is the entity you want your business to be.

Like what others have already commented, I highly suggest reading the Ultimate Beginners Guide to Real Estate investing. I am almost finished reading it and it has already helped me understand real estate much more.