All Forum Posts by: Mike S.

I have bought condos, in fact I bought all the condos in the building... Now I am the Condo Association and I need to agree with myself if rentals are approved. :-)

Originally posted by @Dane Gullakson:

Piggy-backing off of this topic if you don’t mind... I am finding myself in a similar boat. I own a rental property which I would like to deed to my LLC. Before doing so, I went through the proper channels and asked permission from my lender. Their response stated that they would call my note due if I deeded my property to my LLC. What now? I’m at risk keeping the title under my own name. Any ideas on how to convince them or otherwise get this done without having my note called due?

Transfer your property to a Land Trust where you are still the beneficiary. The Garn St Germain act will protect you against a due on sale clause. Change your insurance to the land trust. Then later on, assign the beneficial interest to your LLC. As this assignment is private and not recorded, no one will know about it.

Originally posted by @Jon Allen:

The LLC doesn't need to be organized in the state in which the properties are located in order to use that state's court system. He would just file for an authorization to do business as a foreign entity in each non-domestic state in which the LLC owns properties. e.g., domesticate to Delaware, create series LLC, qualify them to do business in Georgia. I'm not advocating either way on doing that but it's a workable approach to addressing his objectives.

I agree that you can use foreign registration, however the fee are almost the same as for a normal registration in the state; You will then incur twice the fee instead of paying only once.

There are some valid reasons to use foreign registration and incur these additional cost in some situations. One of them would be to use a state that has better charging order protection. For that situation, I prefer to use a holding LLC in WY that will give me these excellent asset protection charging order and also anonymity. This WY holding LLC will then own single member LLC in each state where I have a property.

Another reason may be to use series LLC in the state that offers them. I am still intrigued by them as they may become very good tools in the future when they would have been backed up by plenty of case law, but they appear to me a little bit to much untested for now to rely exclusively on them. If you only have a few LLCs, the additional cost to have different ones is not too much for the peace of mind. Now if you have tens of them, it may be worth it.

Keep your LLC in the same state that where you have your properties as if you need to conduct any action in court (for instance an eviction or defending a lawsuit from a tenant) your LLC will need to be registered in that state. The cost of an LLC is not that much in your state, and doing paperwork for 1 or multiple LLC is not that much more difficult. Personally I would do a land trust for each property. That will add anonymity and make your life easier to transfer one property from one LLC to another without having to redo the title and pay recording fee and stamp. How much property per LLC is a matter of personal choice and risk tolerance. If you question it right now it means that you are growing inconfortable with the risk of loosing all your properties at once. Then by all mean spread them in multiple entities to limit that risk. If it only cost you a few hundred dollars per year for that peace of mind it is worth it.

explain to her that you will need to increase the security deposit, but work with her on a payment plan. Remind her that you will not raise her rent for xx month as she was a good tenant and for the nuisance that you created during the renovation, but make a point that her rent is below average and eventually you will have to increase it a bit.

You can maybe have a payment plan like $50 more a month until the security deposit is fulfill, then increase her rent by $50. She would already be used to pay that amount every month.

@Michael Newman - referral - educate yourself on the subject your lawyer will work on to have a good understanding of the main choices available. You’ll be able to ask some pertinent questions and see if you like the answers. I wasted some money on a local attorney who was supposed to be a ‘specialist’ in a specific field. He had absolutely no clues about some of the strategies that I had researched. Like every member of your team you will need to interview some to find the lawyer that will not only be knowledgeable on your field but also a good fit with your work style.

I would advise to use the same bank for all your entities. You can then transfer from one account to the other immediately.

Some banks will let you use the same login for all entities, some will require that you use one login per entity.

In my situation, I have one managing company that is managing all my rentals. This company is banking with 2 banks (some banks are better/easier for some type of transaction than other: ie wire transfer, ach, zelle, after hours cash deposit, etc...). I have all my safety deposit in one savings account, and all my provisions (capex and taxes) in another. I also have a credit card issued for the company.

Each property LLC has its own checking account in a bank with low minimum deposit free checking account as there is almost never any money in it as it is transferred out to the holding company.

My main holding LLC has also a checking account in the same bank.

I am using MySudo app for all my rentals.

My understanding of the statement that you quoted is that instead of having each land trust beneficial interest being assigned to a different LLC, you could have multiple land trusts beneficial interest in the same LLC.

I don't know how strong (ie how many case laws have confirmed it) the Florida Land Trust liability protection is. In my case I still have one land trust per LLC.

Also, don't forget that Florida single member LLCs have lost the charging order as sole remedy since Olmstead vs FTC. You should use either a Florida multi member LLC, or another state holding LLC (like WY or NV) to own these FL single member LLCs.

That being said, I am not a lawyer...

In Florida, the land trust statutes give some liability protection that is not available in other states.