Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Stewart Miller

Stewart Miller has started 1 posts and replied 37 times.

Post: File for LLC in my state or not?

Stewart MillerPosted
  • Sicklerville, NJ
  • Posts 40
  • Votes 23
Meena Price I have a NV LLC that owns the LLCs that my rentals are in (if someone tries to sue me and looks up the owner of the LLC, they don't see my name. They see the NV LLC, which has the anonymity). You can't really hide ownership. NV state will release ownership info, it's just harder to get as the plaintiff's attorney would have to go before a judge to get info, as opposed to doing a simple search of your states Sec. Of State site). If we're you, I'd set up the NV LLC as a holding company, and do you individual wholesale deals in an LLC that's set up in the state the property is in. Instead of you owning the operating LLC, have your NV LLC own it, hereby providing you with anonymity.
Deed the house back to your name personally. Refi under your own name (if you can get better rates). After refi is complete, put the house in a land trust with the LLC being the beneficiary. This way, the bank won't call the dreaded due on sale clause because land trust are private documents. The only thing the bank sees is that the house was placed in a trust. Also, if you ever need to refi again, switch the beneficiary to you ( while doing refi) and then back to LLC when it's complete.
Joe, Mortgage the house in your name, as banks don't like them being in LLCs. After the mortgage, put the house in a land trust and make the LLC the beneficiary. This way, the bank will know nothing of the LLC and won't pull the 'due-on-sale' clause. If you ever need to refi, change the beneficiary to you, personally, deal with the refi, and once it's done, change the beneficiary back to he LLC. If this sounds complicated, it really isn't. A land trust is a private document not filed with any state agency. You can switch beneficiaries whenever you'd like from your own computer. I had my lawyer write the land trust document and saved it in my computer. Whenever I need to, I switch beneficiaries.
Sandy How I am new to BP. I am still figuring out out to put my email/site out there. In the interim, I am a investor with my own contracting and property management companies. My companies are set up specifically for investors. I was having trouble finding reputable contractors to do multiple properties at once. I set my own companies up and so far it's going well. As soon as I can figure out BP, I'll forward my contact/website.

Post: Buy Hold Partnership Structure

Stewart MillerPosted
  • Sicklerville, NJ
  • Posts 40
  • Votes 23
Jeff Bethke also, I suggest the LLC holding the property be set up in the state where the property is located. However, your holding/parent LLC can/should be formed in a charging order protected state (NV or WY, for example). Hope this helps.

Post: Buy Hold Partnership Structure

Stewart MillerPosted
  • Sicklerville, NJ
  • Posts 40
  • Votes 23
Jeff Bethke to answer part of your question, I have an LLC set up as a holding company. I originally capitalized that one company which, in turn, formed, capitalizes, and owns a second LLC. The second LLC actually owns the property. If you acquire a third, your 1st LLC does the same thing: forms, capitalizes, and owns the third LLC to own your second rental. This structure allows you to remove the profits from your dangerous entity (the entity that actually owns the property). Under this structure, if the property is ever attacked by a creditor, it doesn't matter as there's no money in the bank account. Also, say you get to the point of having, let's say 50 properties. If all of the individual LLC's that own the property are owned by the one holding LLC, once enough money if distributed to the Parent LLC, the Parent can then issue lines of credits to the operating LLC's which it will secure with a lien. So if you've got a considerable amount of equity in the operating properties, you can essentially strip the equity out of them, furthermore protecting your assets.

Post: 203k Loan with LLC?

Stewart MillerPosted
  • Sicklerville, NJ
  • Posts 40
  • Votes 23
Originally posted by @Chris Jordon:

@Andy Collins @Andy Chu @Wayne Brooks Thank you all for taking the time to share some knowledge. Unfortunately, I figured that was going to be the verdict. While getting started I would prefer to take advantage of the benefits that the FHA loans provide so I guess the LLC will have to wait.

You may not have to wait. One way to solve this problem is with a land trust. Get the 203k mortgage in your own name. Then deed the property into the trust. Then make your LLC the beneficiary of the trust. This way, the bank only sees that you transferred the deed into the trust, which will not usually trigger the note acceleration. If the banks demands to see the trust document, give them one naming you, individually, as the beneficiary. Because trust are private documents and are not made public, you can also reprint the same trust agreement naming the LLC the beneficiary. This structure give you the best of both worlds as you'll be able to get a cheaper loan AND have the limited liability protections of an LLC. (This is in the event you're sued. In the event you default on the mortgage, your personal assets are at risk.)