All Forum Posts by: Account Closed

What is the property that you bought?

Do you have title insurance?

Have you checked the rules on ebay for selling RE?

Dan,

Your questions are getting scary. At least to me.

Layers of complexity when you do not really know the basics. Yes, you might be learning as you go. Just be careful that you do not get it wrong by setting things up before you know what to do. That will reduce or destroy the value of the structure you have set up AND you will not know it.

Hopefully you have not set up much so far. That way you can get the right things into the filings and you can make sure you can demonstrate a clear track record for following best practice.

I take it you are not using legal professionals to advise you. Is that correct? Are you trying to save money? If so just make sure what you save is not lost many times over later.

Dan,

Did you use a lawyer to set up the LLC? Do you have a CPA for your taxes?

If not then assume you need to do some serious reading. You really need to know in advance what is required and what will cause problems.

The specific question you asked is not that complex (answered prior in this thread). The issue if there are other things you really need to understand.

If you fail to operate correctly you might be wasting your time having an LLC.

DE allows a multi-entity LLC. That way you can have the top level entity deal with the bank accounts and other things while still getting many of the benefits of separate LLCs.

Check with your state to see what is out there. Note that one DE attorney I spoke with did not know the multi-entity option existed. It is about a year old based on when I saw the first report.

TIC - Tenants In Common. A way of holding title.

As an investment they are mostly used for folks who want to do a 1031 into a project where they can only afford a small share. Similar to the old world of limited partnerships but set up rather differently. Mostly because of the 1031 rules.

You do not need to use a TIC when you want to do a 1031 so do not confuse the two.

A TIC will not have a clear exit path if there is 1031 money involved. A TIC is normally a large commercial property with many owners and a professional management company.

They offer stable returns for people who want to be completely hands off.

They are relatively new in the work of REI. Maybe 10 of so years now.

In some CA cities you will see TICs as a way to do an end run around laws that prevent small buildings being converted into condos. The TIC structure there is very different than when someone is promoting a TIC to 1031 investors.

To repeat, the foundation to all TICs is the tenants in common ownership. That aspect is very old. It just means a way to take title when the two (or more) parties are not married yet want to buy a property together.

Why keep it open? So more people can get knocked about?

We are way past discussing the details so let it die. Some of the advice provided by those who think the idea is dumb are inaccurate.

Brainstorming is obviously not what we were doing here. Lets move on.

Jon,

Consider using the MeetUp.com site as a tool for coordinating meetings. The site is all about handling the logistics (who is signed up for a meeting, announcing the location, sending meeting reminders).

You can use the site with a private group or you can leave it public so more folks stumble upon it.

I use the site for a meeting I hold once a month in London. It saves me the hassle and time needed to keep things organized.

1. I have his material. I focus on residential so I have not used all of the material in his manual. Offices and similar are not my focus.

2. I know the guy and have meet with him multiple times over the last 4-5 years. He is no BS. Frankly he has a short fuse for dumb ideas.

3. He is very active so he spends most of his time on his deals. He runs a business with his brothers.

4. Ray is really into demographics and research. The due diligence list is one of the most complete.

I believe the program comes with a money back guarantee if you buy it on the site I know of. Low risk. Just return it if you are not happy.

There are others out there so pick the one you want. The most important piece of advice is to do something with what you learn. Pick what you need as not every REI should be following the same plan.

Sagar,

I might be able to help put some things in perspective. I am based in London, I am from the US and I invest in RE in both the US and UK plus I have spent time in Spain looking at deals there.

My REI experience started in 1983.

Where in the UK are you located? You might want to fix your profile so you location is more accurate.

The key to any investment will be making sure you can get it back with a profit.

It is also relative.

Portland did not rise all that much in the early years of the decade. Hence there was little 'bubble' to deflate. Mostly because Portland got a bit hammered by the dot.com crash. The state has one of the highest unemployment rates and there were people loosing their homes in 2001-2003.

Similar for Charlotte NC and Dallas TX according to Shiller from the Case-Shiller index.

Value investors buy value and look for blood in the street along with other buying signs.