All Forum Posts by: Matthew McNeil

Matthew McNeil has started 31 posts and replied 686 times.

In the respective checking account for each asset. No interest bearing, but its money that's there and available to replace the HVAC or roof when needed. And I just sank $10K into a new roof for one of them.

0 Votes

Quote from @Eric James:

A lot of posts have essentially stated "Real estate is a good investment because.... " I agree. But that isn't my question. My question is specifically: "Does real estate appreciate faster than inflation?" That's it.

Great question and to the point. I'll answer to the point:

I bought a SFH in 2020 for $285K. Today its worth $485K
I bought a SFH in 2017 for $240K. Today its worth $515
I bought a SFH in 2016 for $206K. Today its worth $520

I could keep going, but you tell me. Has my RE appreciated faster than inflation?

0 Votes

You lost me at "My understanding..."

0 Votes

Originally posted by @Tim Stuart:

Hey Ryan,

My CPA has told me that one subpoena will pierce the veil of pretty much any LLc. Wit that being said, utilize debt as protection and maintain a good umbrella insurance policy to combat potential liability. If the properties show debt as an encumbrance, there is less salivating from attorneys vs. if it was recorded as free and clear.

Hope this helps,

Tim

I don't think one subpoena will pierce the veil. LLCs by nature and reason for their existence are designed to do what they were created for as long as you've done everything correctly to keep from piercing the veil. However, what you said about debt is true. A low LTV is a natural defense mechanism because there's not enough meat on the bones for an attorney to go after. However, an aggressive attorney can go after your other stuff if you've not separated it.

1 Vote

Originally posted by @Ryan Daniels:

Has this topic been beat to death?

Do those of you who are renting out homes/apts/mutli-fam structure your investments to be owned by you personally, or by an LLC which you own?

I earn a pretty decent living outside of Real Estate (where I currently earn nothing). Having a somewhat sizable income, I have accumulated a fair amount of assets in the form of cash, stocks, bonds, and other physical assets. I think sometimes that this may present a target to renters who occupy the types of units that I am investing in. As such, I have major reservations about owning the properties in my name, in the event that a tenant slips and falls, or brings suit for some other problem.

I will be utilizing a property mgmt company for any rental properties that I buy, wherever I buy them. I don't actually want to meet the tenants at all, beyond reviewing their screening process. I will not be the one interfacing with the renters at any point... I already have a full time job.

So, do you use an LLC or some other corporate structure? Why or why not?

FWIW- i already own an LLC for my main working gig, so I'm familiar with that it takes to create and maintain one.

Yes, this is one of those topics that has been beaten to death here on BP. 50% will tell you its not necessary and 50% will tell you it is. Personally, I pivoted away from BP and did my own research and determined that (considering a worse-case scenario) it was best to put my assets into separate LLCs. Note; my state doesn't allow Series LLCs.

If you do decided to go the LLC route, most people don't understand the breadth of what's involved to make sure you've followed all the "rules" to keep from piercing the veil, and to make sure Title Insurance isn't jeopardized by doing so.

I'm surprised others haven't warned about the Due On Sale clause... which is a warning people state, but isn't entirely true if its a conventional loan.

1 Vote

20% down is typical for residential investment property.

0 Votes

Stay in Washington. Idaho is a close pivot to the right, but its a horrible place to invest. Terrible landlord-friendly laws.

Wink ;)

2 Votes

Originally posted by @Bryan Danger:

Sounds all too familiar, but glad to hear we aren't alone!

We bought a 4plex (also our first) in UT that turned out to not be the "up and coming" neighborhood we thought, and soon after moving in learned that it was the town drug house and brothel!

Curious... how did you not know or realize this before you bought?

0 Votes

Originally posted by @Jay Hinrichs:

OK open and account that is owned by your LLC and just has your name on it for check writing purposes we do this alot.

the LLC owns it we name the account what we want and put the personal name on the checks but its run through the LLC books as hte account is owned by the LLC..

Jay, Noted. Good suggestion. Actually, the bank's issue was autopayment from a business account, which is how I've always paid it. They won't accept auto pay from a business account anymore. They will however accept autopayments from a personal account. Not sure why ????

0 Votes

Originally posted by @Jay Hinrichs:

is this coming from the servicer who represents the entity that bought this note ? I suspect this note is not really held by a particular bank ??

this is where some sub too buyers can get caught.. and how lenders handle those that do sub too.

Jay, yes, its from the originator of the loan - Flagstar Bank.

0 Votes

← 1 2 3 4 5 6 7 8 … →

All Forum Posts by: Matthew McNeil

Matthew McNeil has started 31 posts and replied 686 times.

Post: Rental Property Reserves

Post: Is real estate appreciation a myth? Adjusting for inflation

Post: Bitcoin continues to become the most pristine collateral asset

Post: Do YOU hold rentals in an LLC or your personal name?

Post: Do YOU hold rentals in an LLC or your personal name?

Post: Conventional Loan for Rental Property- Money Down- 20 vs 25% Down

Post: Being a landlord in Washington State!

Post: First Multifamily (Long Distance BRRRR Gone Sideways)

Post: Lender REFUSES mortgage payments from LLC business account

Post: Lender REFUSES mortgage payments from LLC business account