All Forum Posts by: Mike S.

@Sean D. Jackson Create a land trust where you are the beneficiary. Do a warranty deed to your land trust (do not use quit claim as it may void your title insurance chain). The Garn St Germain act will protect you against the due on sale clause. Then later on, assign your beneficial interest of the land trust to your LLC. This assignment is a private document that is not recorded and your bank will not know about it. Don’t forget also to change your name insured to your land trust.

Originally posted by @Mikael Lickteig:

@Mike S. Wouldn’t they see the name on the insurance in the LLC instead of my name?

The name insured for your property will be the Land Trust. You will add the LLC as additional insured.

Create a Land Trust where you are still the beneficiary. Transfer the title of your property with a warranty deed to the Land Trust. The Garn St Germain Act will protect you against any due on sale clause from your mortgage company.

Later on, you will assign your beneficial interest in the land trust to your LLC. As this assignment is not recorded, your bank won't know about it.

@Olu Owasanoye Using entity like LLC is for liability and asset protection only. It should be tax neutral. It also creates some additional costs (setup, maintenance, tax reporting) and will limit your financing availability (more expensive commercial loans). Depending of your threat level and the amount of asset that you are protecting it may be worth the cost. But only you can make that decision.

Two issues with buying the LLC instead of the property is that:

- you are also buying prior liabilities attached to that LLC

- there is no step up value on the property, as the depreciation will continue from where it was.

Sometimes numbers may work, sometimes it will not. For the liability part, it is better to sell the property to a new LLC that you creates. You can then use the new purchase value for depreciation.

You will find multiple online classes for the Florida real estate sale associate license. When I was looking for one, I found a deal on groupon for the pre and post course bundle for sale associate for less than $100 (don't forget that once you have your license you will have to take the post course within the next 2 years). I believe that this groupon offer is still available. These courses are probably not the most exciting on the market, but I passed both without any issues.

If you have already some general knowledge about real estate, you will find that it is really easy to pass the state test. If you are brand new, you will probably need some more study to assimilate all the jargon that we are using.

Buy your property into a Land trust where you will be the beneficiary. You should be able to get personal loan on that. Later on, you will assign beneficial interest to your LLC. As this assignment is not recorded it will not trigger the due on sale clause.

8-30 unit for $100 to $180k seems pretty cheap to me for that area... If you find some I'll be interested to know where.

Each state may have its specificities, but in general you need to have an address in the state. That address need to have someone to receive and sign for legal process during normal business hours.

Some state will refuse PO box and/or CMRA.

You can shop around for registered agent online. I have LLCs in multiple states, and I'm paying between $35 to $50 per year for the registered agent service.

Originally posted by @Wayne Brooks:

The biggest problem with county owned certificates is that of all the 1,000’s Of liens sold, No One wanted those, which is why the county ended up with them.....there is usually a reason. Yeah, a life estate is one example....no use or occupancy of the property until the grantee dies, and as is obvious, they don’t have to pay the taxes.

How does a life estate would trump a tax deed? Can't you still start a tax deed sale? The winner of the auction should get ownership and occupancy of the property?