All Forum Posts by: Account Closed

@Shawn Holsapple

Fine points, well made.

So I should first set up an S-corp and join it through my LLC(s), correct?

@Steve Babiak

Thank you for the wise words. A few details:

Can I close in the name of my LLC even though it isn't formed yet?

Can I set up my LLC in a different state where I can be approved same day? (Cali takes 1-2 months)

Does closing in the name of my LLC make deed transfer more complicated?

Thanks for the advice @Sharad M.

You made some good points, can anyone else expand on these?

Specifically benefits of S-Corp and where to set up wholesaling LLC

Background: I have some buy and hold properties but I am doing my first wholesale. I have an LLC in another state where I do business, but want to keep that separate from my wholesaling.

My question is whose name should I wholesale in?

I have no LLC for wholesaling. I am putting this property under contract today/tomorrow. I plan to form an LLC specifically for wholesaling this year. Should I close in "My Name" dba "LLC" or should I just close in my name since I have no LLC set up yet?

2nd question: If I close in my name, can I still get the LLC tax benefits if I set it up this year?

3rd question: I live in California but my wholesale deal is in another state. Where should I form the LLC? California LLC filing takes 1-2 months unless you pay $500 rush fee. Other states only takes a day or two (I filed an Indiana LLC the same day)

Final question: How does an S-Corp come into play?

Are there any hard money lenders that have no income requirements?

I have laid out my due diligence process. I know I could do better. Please criticize and critique. I have included a few questions. I appreciate your help on this:

First, I research the zip code and neighborhood on the internet. I look at sales comparables and population/demographic trends, and look over the area on a map and on Google Earth.

Second, I contact the local citizens with regards to the building and if possible, the previous ownership.

Police Department can tell me insider's opinion and can give me a breakdown of crime in the area.

Fire department - have they had any emergencies at the building recently.

City Inspector - are there any outstanding violations? Historically, any violations?

Property Management Companies - have first hand knowledge of all things landlord related.

WHO ELSE SHOULD I CONTACT?

At this time I will put the building under contract, after reviewing it with my attorney. Contract states that due diligence does not begin until I have given my written notification that I have received all requested documents.

During due diligence I request the following documentation:

P&L Statements.

Seller's Tax Returns and Bank Deposits

Lease agreements and rental receipts

Copy of current management contract and payroll register

Copy of insurance policy

Copies of service and advertisement contracts (Trash, Water, Util, etc)

Confirm any existing liens.

WHAT IS THE BEST WAY TO GET TAX RATES, SINCE THEY MAY CHANGE AFTER THE SALE?

During due diligence I perform the following inspections:

Title Insurance

BPO/Appraisal (IS THIS NECESSARY WHEN BUYING ALL CASH?)

Inspection

Termites

DO I NEED TO GET ENVIORONMENTALS, STRUCTURAL AND SURVEYS ON EVERY PROPERTY?

IS IT NECESSARY TO USE MORE THAN ONE INSPECTOR?

Once I get the inspection, I make a note of what needs to be fixed and walk the property with a few contractors to get a bid on the work to be done.

@Joel Owens

We are in the due diligence process

Can I just sign over the warranty deed to them and have them record it?

The title is clean, I have the warranty deed.

@Joel Owens

@Joe Fairless

Properties in South Carolina.

Do I need property management company in addition to a leasing agent and maintenance? It would probably help since they have better systems with books, etc.

What is the most efficient and fair way to pay these employees?