All Forum Posts by: Matthew B.

@Matt Lane

Sweet, man! I think we've got ourselves a plan!

@Matt Lane

Makes sense to me! Thanks for sharing. 

Why the need for 2 members on all of the LLCs? Is that just as asset protection thing? I vaguely remember the attorney on the podcast mentioning it.

Got the new fence put up this weekend.

@Matt Lane

I'm thinking the LLC's are setup with the operating LLC being listed as the owner of the holding LLC's (instead of you personally), so any money made, whether rent or flip revenue, flows back to the bank account of the operating LLC. The operating LLC has the bank accounts, credit cards, marketing, etc. and new holding LLC's can be created as needed without changing the operating LLC.

Hopefully someone can confirm this or set me straight. 

I'm not necessarily looking for asset protection, but a simplified way of doing business. I currently have an LLC for buy and holds and an LLC for flips. I have separate bank accounts for each and separate Quickbooks accounts. If I could combine them using an operating company, I feel like it would make my life easier and reduce some expenses.

@Matt Lane

This is what Scott Smith, the attorney featured on BP Podcast Show 109, said:

"Action #2 is to say for most investors, go ahead and set up at least three LLCs or start using a series LLC structure. You should be having one company that’s going to hold your flips, one company that’s going to be holding your buying holds, and one operating company that you’re going to be used to enter into contracts, to purchase property, collect rent, etc. Your operating company is the one that’s actually performing all the business. The holding companies don’t do anything besides just holding the assets and we separate those out for IRS tax reasons."

I'm gonna go post on the show notes and see if I can get some clarification from Mr. Smith.

I'm in need of a carpet supplier and installer in the greater Orlando area. Specifically Lake County. Any recommendations?

There has to be a way. I get mail from hard money lenders and other investor service businesses all the time. How are they getting my name and address?

The purpose of a different managing company is so that the holding LLCs can keep changing without having to change bank accounts, marketing materials, etc. The lawyer I was speaking with today advised that the LLC holding companies for the flips be allowed to expire after a dozen or so flips are run through them.

I didn't get a chance to ask him about the money flow. I know the lawyer who was on the BP Podcast recommended setting things up this way, and I've heard other investors in the past say they do it. I'm just curious how it works exactly.

@Matthew Paul

My mistake for not differentiating between concrete and cinder block. That's what I've been looking for. I wasn't sure if a regular nail gun was used or if it was something special.

I talked to a guy at the builder supply store today, and he confirmed a regular coil nailer is used with "stiff stock" 1 1/2" nails.  

@Deborah Pyburn

My MLS doesn't have an option for searching investor-owned listings. All I can search for is owner name. There are tons of cash buyers as well, but they're not all flippers. I need to distinguish between flippers and buy and hold investors. I'm only after the flippers. This is the trouble I'm having with filtering down the the information into a usable list.