All Forum Posts by: Lakshay G.

Originally posted by @Richard C.:

Let's say you have a requirement that prospective tenants provide pay stubs to prove income, because you prefer that people have stable jobs rather than renting to self-employed people or freelancers. And you explain that to prospective tenants. And a prospective tenant provides those pay stubs, from an LLC. And you later find out that they own the LLC, and are in fact a self-employed freelancer.

Would you feel like they have been honest with you?

If not, then why would you hide behind an LLC in exactly the same way?

Man up, and don't try to deny you own a property.  Mine are in LLCs.  I never say, "Hey tenants, you know I own this house, right?"  But I would certainly never deny it, and I think it is pretty well understood by everyone.

If you do have an LLC, and you expect it to provide you with any protection from liability whatsoever, then you need to actually operate it as an independent entity. Which means, yes, you have the rent check made out to the LLC.

Thank you sir for your opinion. While a completely after with you, if a tenant does take me to a court for a stupid reason, I hope the dive will give me a break because I was a man enough to have the lease documents on my name and not a LLC's. 😀

Originally posted by @Kim Tucker:

ahh practicing law via Bigger Pockets . . . 

While cheap and even free, not always the best advice . . . please consult an Attorney where the property is located.

 Thank you for your input.

Originally posted by @Clint E.:

Originally posted by @Lakshay G.:

Maryland is not the cheapest when it comes to LLC fees.

Just form/incorporate your business in another state.  I did mine all online in Missouri it's like $50 or less and its good forever.  

 What a great tip. 

Originally posted by @David Lemley:

Hmmm. Maybe I am just paranoid, but I consider holding a rental in you name as a huge problem. I have 36 properties in LLC's. If someone has any reason to go to court, I want the LLC to be responsible. I also say that I am the property manager which gives me some separation from the decision makers. LLC makes that more believable. About 9 years ago I was counter sued by a professional tenant. She tried to name me personally, but couldn't because she signed a lease with the LLC. I love my LLC's!!! Good luck.

Thank you for your input and I agree with you 100%. There's only one problem. I got a conventional loan on the house that's on my name (Bank didn't or couldn't give a LLC a loan). In your opinion, can I still even use a LLC as the property isn't on LLC name? I have a reference who went to a local bank and was able to get a loan on LLC name and she is a personal guarantor on the loan, I tried this but couldn't make it happen (yet) but my goal is to do this on my next property.

Thanks again. 

thanks everyone. 

Thank you everyone for your input. All were great advises. Yes for MD, you can see who actually owns the property. I'm not sure whether Maryland allows just DBA which isn't attached to a LLC or INC but I will look into it. Thanks again.

Hello there, I am new to buy and hold investing and closing my first property very soon. The house is on my name (not on LLC). My concern is that I don't want a tenant to know my full name and my details that I actually own the house, I would like to act as a property manager instead. Yes I'll be using a P O Box address where they will send a payment (I'll be lucky if they can pay online). In other words, I don't want to use my name on the lease, I'd rather form a LLC and use the LLC name instead of mine. Maryland is not the cheapest when it comes to LLC fees. Is this my fear due to being new. So coming to two questions now. Should I create a LLC that a tenant will write checks to and will that really do anything? Second, if the tenant asks me if I own the house, can I say it's owned by a person who doesn't choose to disclose but the LLC is managing it? Or should I suck it up, mention since day 1 that I am the landlord and not care what they think.

Thank you in advance. 

Thank you very much everyone. The rates haven’t dropped much so I’ll stick to the current situation; moreover, I’m closing towards the end of next week so really there’s no time left either. 

@cody Thank you.

Hello there, I’m closing on a property next week on conventional 20% down loan. My lender locked the rate 4.75% at least 2 months ago and I believe rates have dropped a little. I’ve already asked the lender to run an update but is he actually going to drop my rate? Let me rephrase, is he legally bound to drop it if the rates truly have dropped or can he flat out refuse to re run as it’s too close to the settlement or simply alter (lie) and say that rates are the same. Thank you.