All Forum Posts by: Richard S.

@Mindy Jensen Are you guys hiring for any remote positions, or Colorado locals only? 

Those taxes are normal for SJ and a duplex, at those rents the building sounds relatively nice. I think the numbers make sense if those rents are attainable if your tenants move. If they're getting government assistance though, be happy that's guaranteed income! 

At those numbers, I wouldn't do it. 

I'd need to see the purchase price at $100k per unit and the rent at $1500/unit.

Make sure the utilities are separated per unit so the tenants pay them. 

 This is a very good idea (umbrella policy). You can simplify things a lot simply by getting cheap insurance. 

You need a course in contract law.  Specify laws/jurisdiction in your contract (lease).  You'll go to court in your local area governed under the Delaware laws. I suggest you call your attorney referral and get caught up on standard business law. 

@David Dachtera I just want to chime in for one more point, as you mention the complexities of multiple veils. I don't know if you have any experience with this personally or if you're speaking purely from a hypothetical standpoint --- however -- it's worth noting (ask a lawyer) that generally speaking if a corporate veil is pierced, it's not incredibly difficult to continue piercing the veils behind it. This is why you incorporate in a state like Delaware where LLC protections are the strongest. In states where there is precedent of veil piercing, an investor may expose his or herself to more risk with an LLC. Layers upon layers in structuring your entity is a good hypothetical principal but in practice may often add unnecessary complexity to management, unnecessary additional expenses, and a false sense of protection, thinking that one is untouchable. Again, ask a lawyer about veil piercing, (like you, I am NOT one), but I am fairly certain that if one is pierced, the rest are easy to pierce too. The goal of veil piercing is to get to the real owner, and if accomplished, it doesn't usually matter how many layers you've thrown up a long the way.

@Chris Ragazzo Also, consider a Delaware LLC. In spite of what @David Dachtera said, you don't always have to form your LLC in your state.  It could be different in New York, but I will say that as of 2014, something like 65% of Fortune 500 companies had formed their LLCs in Delaware.  Why? Because they created the LLC entity type and have the best laws and history in upholding its protections.  You mentioned bringing a partner in on the business. You may also look into the LP structure (limited partnership). 

@Chris Ragazzo Just be advised that the more complicated your structure is, the harder it will be for you to get funding later on down the line. Banks are starting to hate LLCs, and sometimes they won't lend if a Trust is involved (revocable or not).  If I were you I'd speak to a real estate attorney & real estate accountant in your area and explain your intentions with regards to future growth so they can advise on the best structure and entity type.  If you're serious about getting into real estate, spending some money upfront to get professional advice outside of BP will be worth it.

You can usually do it through the state website yourself, but sites like LegalZoom make it painless and easy.  Here's a step by step guide.

Haven't used it but thanks for the heads up!