All Forum Posts by: Sonny Dhillon

I’m eyeballing a property in a B to C-area of town, built in the ’80s, and it looks like I could get it for under $50/sqft. It’s about half full (I’m choosing to be optimistic).

I know office is generally considered “dead” right now, but I can’t help but feel that there might still be an opportunity. Anyone else out there taking a second look at office properties in Texas? I’d love to hear if you’re seeing potential where others see risk, or if I’m just being dangerously hopeful.

What are CAP rates in secondary Texas markets these days?

So I have a question. I have 2 properties under an LLC, and I would like to purchase more properties in the near future. I know there are alot of forums on here about LLCs, Incs and DBAs. But I don't know if this has been asked.

Should I create a DBA for each property I buy. For example if I have an LLC (eg. John Doe Properties, LLC) Then I buy 3 properties should I create a DBA for each one such as:

John Doe Properties, LLC doing business as:

DBA: Green House Property
DBA: Blue House Property
DBA: Main Street Property

or should I just put then under the one LLC?

If I did each property as a DBA, would I then have to open a bank account for each property?

Also If I were to put the properties under their own DBA, and lets say something happens and I get sued by a tenant would they be able to go after the LLC or only the DBA or both?

Thanks,

Ivan

I have an opportunity to buy a property in tennessee that has 25 self storage units AND allows for 25 more to be built. It also has a 6,000 sq ft metal building on it as well. 

But here's the catch.  There is zero income on the property right now because the current owners were using it for personal use and/or letting friends and relatives use the storage units and the metal building (for an auto dealership).  

Now because of this, nobody else has been able to get this property because they can't get a loan for it either.  I tried but the lack of income on the property is a no go. 

I actually have two options for this property: 1) Rent out the existing 25 storage units AND rent out the building plus add the 25 additional units out of pocket.
OR 2) Rent out the existing 25 storage units and added the 25 additional units out of pocket to rent them out BUT keep the metal building for my GC business to where we have offices and storage for building materials. We also have our main subcontractor and our driveway guy that would like to rent some space for their vehicles and materials as well. 

So we could do this loan strictly as a value add play on the self storage units and renting out the metal building. OR we could do it as an owner occupant for the GC business to where the self storage units would pay for our mortgage. 

Just a matter of whether we can find anybody that will do this loan.  I've tried some local lenders but they wanted to see income from the self storage units.  And they wouldn't do it for us as owner occupants because our revenue comes from selling houses (hell - we're a general contractor - thats how we make our money) which was strange but its their rules.  I've tried some hard money lenders too but they don't seem to have a product for self storage where there is no current income coming in.

The kicker is we've been able to negotiate the price down from 400k to 300k because we know they're trying to get their cash out and they told us they couldn't get a loan either.  And no other buyers can get a loan on this thing either because there's no income to show.

Anybody have any lending sources that might do this as a value add project?   The land (3 acres) and the metal building alone are worth well over 300k in this area.  I know because we have a 5 acre piece that is worth 200k and if we added a 6k square foot metal building, we could sell it for 450k all day long. 

Quote from @Sonny Dhillon:

Quote from @Nate Meeker:

Quote from @German Tapia:

I am in the process to register an LLC, I live in San Diego Ca. Should I register it here or in the State in that I will be investing?

Thank you

German

I agree with @Katie Balatbat. 

I personally open LLCs in the state where my rentals are and foreign register them in CA since I live here. You can't escape the $800/year fee in CA. 

*Any post made by Nate Meeker, CPA is informational only. Readers are advised to engage a licensed professional who knows their situation before relying on their opinion. 

 @Nate Meeker , i live in ca and in escrow in property in az , I'm reading mix things. 

should i register my llc in ca  and foreign in az

or

register llc in  az  and then foreign in ca .

i do understand can't escape the ftb tax here. 

If you're in escrow and you haven't created an LLC yet (CA / AZ) the lender may not allow you to transfer the property out of your personal name and into the LLC. 

I'm based in California, whether you are a foreign entity operating in California, or incorporated in California you'll need to file a return in CA. AZ compliance on LLC is dependent on a number of factors including how many investment partners are in LLC.  

.

.

.

*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

Quote from @German Tapia:

I am in the process to register an LLC, I live in San Diego Ca. Should I register it here or in the State in that I will be investing?

Thank you

German

I agree with @Katie Balatbat. 

I personally open LLCs in the state where my rentals are and foreign register them in CA since I live here. You can't escape the $800/year fee in CA. 

*Any post made by Nate Meeker, CPA is informational only. Readers are advised to engage a licensed professional who knows their situation before relying on their opinion. 

I guess that's why fast food chains are pulling AI out of their drive through due to the number of errors it makes: because AI is so powerful. And why we still wait on hold for human customer service reps, instead of being helped immediately by AI.

This tenant was inherited from the seller so there is no way of knowing their intentions.  Anyone have any commercial tenant experience with collections and having success.  Love to hear your story, costs, hurdles, and timeline.