All Forum Posts by: Sharad Bagri
Sharad Bagri has started 12 posts and replied 16 times.
Post: Property Manager recommendations for Dayton, OH
- Posts 16
- Votes 29
Hi BP!
We have a 4 unit multifamily in Kettering area of Dayton, OH. Any recommendations for Property Managers ?
Post: Umbrella Insurance for partnership
- Posts 16
- Votes 29
Buying a property under general partnership with 2 other friends. Any recommendations for Umbrella insurance providers for each partner to cover any liability?
Hi BP,
Is it advisable to get a home warranty for older rental property (built around the 1940s) ?
Any recommendations in Ohio?
Post: Bank account for real estate partnership
- Posts 16
- Votes 29
Quote from @Alfath Ahmed:
Quote from @Sharad Bagri:
For a general partnership (without the LLC), that will invest in real estate in Ohio, what kind of bank account can we open, like checking, saving or anything else? Can we create a High yield savings account?
What banks would you recommend for it?
You would be opening a business bank account with your EIN# for your LLC. I use chase to do all of my banking.
We are not forming LLC.
Post: Real estate partnership, need to register in multiple states
- Posts 16
- Votes 29
We are a few friends from California looking to invest in multi family real estate in Ohio. Initially, we were thinking to make an LLC. For LLC, we need to register in Ohio and California. If we don't go the LLC route for now and just make a general partnership, will we have to register the partnership also in both Ohio and California?
Also, for a general partnership, how do we report the taxes. Is it by filing 1065 and generating K1's or is there more to it?
Post: Bank account for real estate partnership
- Posts 16
- Votes 29
For a general partnership (without the LLC), that will invest in real estate in Ohio, what kind of bank account can we open, like checking, saving or anything else? Can we create a High yield savings account?
What banks would you recommend for it?
Post: How to transfer loan from individual to LLC
- Posts 16
- Votes 29
Quote from @Kevin Sobilo:
@Sharad Bagri, I think most people would simply have their lawyer prep and record a quit claim deed.
I don't think most people notify their lender. Yes, the lender could use the "due on sale" clause to make the entirely of the loan immediately due. In that case you could be forced to refinance, I suppose. As long as you make your payments this sounds extremely unlikely from what people have said.
Keep in mind that most residential mortgages are conforming loans that are resold on the secondary market and bundled into mortgage backed securities. When managing the "security" this mortgage is a part of they probably have a strategy for how to manage that is based on keeping a stable known risk for the security.
If they started proactively doing things like calling a loan due, the introduce higher risk of foreclosure. Even if they force you to refinance, the security makes LESS money because the loan is paid off and you are no longer paying the interest they expected.
Post: How to transfer loan from individual to LLC
- Posts 16
- Votes 29
If we purchase a property with a a loan on an individual name and then transfer to LLC. How does the transfer work?
The doubts we have are
1) There is a due on sale clause or something that doesn't allow the loan to be transferred to an LLC? How seriously is it enforced
2) Who will do the transfer, do we have to tell to the lender or the bank? or someone else like CPA etc. should initiate the process?
Post: Columbus and Dayton, Ohio—B or C+ Neighborhoods, where are they?
- Posts 16
- Votes 29
Hi BP,
I am looking to invest in small multifamily rentals in the Columbus and Dayton area. Since I am focusing on cash flow I want to target B or C+ neighborhoods. Can you please provide some areas where look for properties? and some areas to avoid ?
We are considering buying our first multifamily property in Ohio and plan to hold it within an LLC. We're trying to decide between forming the LLC in Ohio or Wyoming.
We've heard Wyoming offers stronger anonymity with lower costs, while Ohio might provide specific benefits for in-state real estate.
Can someone please elaborate on the advantages and disadvantages of each state for our situation? Specifically, we'd like to understand:
- Liability Protection: How does each state's legal framework and case law compare in protecting our personal assets from liabilities related to the property?
- Anonymity: What specific features of each state's LLC laws enhance privacy, and how significant are these differences in practice?
- Tax Implications: Are there any tax advantages or disadvantages to consider when choosing between an Ohio or Wyoming LLC for owning Ohio real estate? In case it is important, we are based in CA.
- Administrative Requirements: Are there differences in ongoing fees, reporting requirements, or other administrative burdens between the two states?
Since this is our first property, is it advisable to use a single LLC for both personal asset protection and holding the property, or are there reasons to consider a more complex structure?"