All Forum Posts by: Martha Daisley

sounds like he doesnt want the extra paperwork.

Thanks for your responses. On sunbiz, i set up the LLC to have both my husband and i as managers.

So for the EIN, i may have to figure it out later. Would i need it in order to close on the property? I close this friday and i wanted to do it under the LLC i created.

Martha

hello all

My husband and I are closing on a property this week. We want to close in an LLC we just created. My question is, when i go to create the EIN number, the IRS wants to automatically make us a partnership. My accountant says dont do that as we will have to fill out some 1065 form instead of being able to put the rental income under schedule E. He says to not get an EIN and file the taxes under our personal socials. But i thought the point of the LLC was to keep our personal separate from business in order to avoid liability. Wouldnt filing the LLCs income under our personal socials make the LLC pointless? How can we get an EIN for it without being a partnership?

Thanks!

Martha

Hi everyone

I was wondering if this is a good idea. I have a condo im purchasing with cash from a line of credit in a couple weeks. I believe its probably a non warrantable condo so its been hard to find financing to do a cash out refi on it.  However, i have another investment property thats a duplex, easy to do a cashout refi on and has tons of equity. Would it be a good idea to just do the cash out refi on the duplex and use that to pay off most of the condo? I would have to add 19k of my own cash to pay it off completely. Then we would own it free and clear.  The mortgage on the duplex would go up but it would still cashflow 300 to 400 a month profit even after the refi. 

Martha

im going to take out commercial liability insurance which is 1 million per property. I think that would be enough no? I was thinking maybe having two LLCs then to split up the liability yet not have too much of an accounting nightmare.

@Chris thanks for your reply. Yeah, i guess our concern is that all our properties have good equity and cashflow well and we wouldnt want to lose any of them. 

I was told the land trust would be good to hide the identity of, the owners so people wont know what we own in the event of a lawsuit. But the lawyer said the tradeoff is that we are putting our assets in the hands of a trustee which could technically sell the property without us knowing. So he suggested multiple LLC's and of course, liability insurance.

What is your opinion on land trusts?

Martha

hello all,

We are on our third investment property and i was trying to find out how investors with multiple properties protect their assets from liability. Of course theres liability insurance but beyond that, do you keep all the properties under one LLC or separate LLCs for each? Do you put them in a land trust?

A lawyer suggested separate LLCs to me so if something happens on one property, the rest wont be affected.   What are others doing to limit liability?

Thanks!

Martha

hi @ Daria

Thanks for the tip. Actually yeah ive been talking to regions and sounds like they can finance it but they can only do 15 year fixed and will only do 70% of the property purchase price (not the LTV). I didnt know they did Helocs on investment properties though, ill definitely discuss that option with the rep ive been speaking to, theyve been really nice.

@Stephanie, can you explain what a portfolio lender is?

Thanks for your comments everyone!

Martha

Hi everyone

I have an investment property that im getting with a line of credit and then i have to cash refi it soon after. The problem is that it looks like the banks all want to do only 70% and some wont even do LTV but just 70% of the purchase price. This is going to essentially leave me with 30% out of pocket even at LTV as the property doesnt have a whole lot of equity. It has great cashflow potential though, its a buy and hold.

Does anyone know of any banks that will do 75% LTV cash refi without the seasoning period and at a good rate? I know i may be asking for the world lol.

The other option is to do a cash refi (or a heloc , though i heard helocs on investment properties are hard to get) on another property that i have which has tons of equity. I didnt really want to resort to that but i want to lower the amount i have to come out of pocket as much as possible.

Any other suggestions on how to handle are welcome.

Thanks!

Martha

Hi 

Im looking for a turnkey property management service in the daytona beach area for a short term renal/air bnb property. I need everything from handling the bookings and questions to cleaning services. 

Please contact me if you can offer this service.

Thanks

Martha