All Forum Posts by: James W.

my understanding is a S corp is used if for running a business and a LLC is for real estate property. I have my current business (not real estate related) under a S corp. Are you runnning a real estate company or just holding properties to collect rent?

I found an article about this subject:

http://bizadvisor.com/limitedliabilitycompanyforrealestate.htm

Hi John, that is awesome I just noticed you are in San Diego also. Just wondering what do you do for all of your properties? Do you put each in a separate LLC or do you own them as a sole proprieter?

Maybe I will just do a hybrid and just put all my future properties into one single LLC.

the person I bought the commercial property from had the property in a LLC and my broker said to put each commercial property in a separate LLC. My CPA however seems to think I can either way.

I am planning to accumulate a lot more properties in the future.

So a LLC is only worth it if you are "high net worth" not high earning? I assume if everything goes well, someday I will be high net worth. How much money is considered "high net worth" before a LLC is necessary?

no offense taken, sounds like everyone thinks a LLC is a waste of money. the unfortunate part is I already formed the LLC so should I just tell the secretary of state to inactivate the LLC?

The property is worth $1.5 mil and I currently am in the top 1% income bracket at age 37. I definitely do not want anyone trying to come after my family or my business (not real estate related).

The insurance policy for the property is for the replacement cost of the building with $1000 deductible. The liability is $1million per occurance /$2mil aggregate. Do you think this is enough where I do not have to form an LLC?

So I finally closed on my first commercial property in San Diego on 12/31/12. The escrow placed the property under my name and my wife's name but I understand I need to move the property to a LLC for asset protection.

Using Legalzoom I finally got my LLC formed a few days ago. But how do I transfer ownership of the property to the LLC?

Do you know which form I need to use from the san diego assessors office to make the transfer? Is it the quit claim form? I called the assessors office but the rep I spoke to did not know and just referred me to their website.

http://arcc.co.san-diego.ca.us/services/all_forms.aspx#recording

Thank you for your help!

For those who are lucky enough to make over $450k/year, what changes are you making?

From what I understand
1) tax rate goes up to 39.5%
2) you cannot take mortgage deductions anymore?
3) dividends from your corporation will be taxed at 20%

anything else? how do you protect your earnings besides maxing out on your sepIRA?

is it worth it to keep a home mortgage or should you just go and pay it off early?

does it still make sense to invest in real estate?

I know this is a great problem to have but it sucks to have 52% of your pay go to taxes after factoring in CA state taxes!

thanks for all the great advice. I spoke the the property management company I will be using and they said not to worry about it because installing an elevator is not physically or economically feasible. Sounds like I will just have to worry about the first floor as you mentioned :D

I am in escrow to buy a 10,000 sq foot commercial building in Southern California with 13 tenants. I plan on using the existing property manager who says he will charge a 5% management fee. Do you think this is too high?

Also should the property mananger take care of everything including electricity, property insurance, etc or should I take some of that responsibility myself? Being a business owner, I am always concerned about embezzlement, is that something I need to be concerned about with a property manager?

Should I give them free reign to do any maintanence without notifying me and just send me a monthly statment?

I am in escrow to buy a 10,000 sq ft commercial investment property in Southern California. The buildiing has 2 floors with 2 sets of stairs going up but no elevator or wheelchair access. Does the ADA require wheelchair access for all buildings?

I am not sure if the building is ADA compliant and if I will get sued for not being compliant.