All Forum Posts by: Tori Magers

What part of Utah? We should connect! I'm originally from SLC, UT but moved to the Tampa Bay area (Clearwater) for the real estate investing opportunities. I actually quit my W-2 Career (engineer) not too long ago and went full time (instead of just part time) as a realtor. I work with a lot of investors and mainly on STRs and house-hacks here in the Greater Tampa Bay area (Tampa, St. Pete, Clearwater, etc). I actually close on 2 more this month with clients and am renovating mine right now to throw up on the market as an STR come September. I also do house-hacks and general LTR investing as well and can help no only locating properties but analyzing them, getting you set up with PM, amenities list, and local vendors (handymen, cleaners, etc).

@Tori Magers

If you don't mind, lets just double check why you want to use a LLC: https://www.biggerpockets.com/...(LLC Misconceptions and Eduacation)

What you found out is correct. Conforming residential loans are not available to legal entities such as LLC's. So, if you are going to go down the LLC route, you will have to use "non-residential" lending which generally have higher rates (although its getting on par now) and worse terms. Yes, DSCR's are all the rave now.

Just make sure that you operate your LLC correctly to protect its corporate veil, otherwise it defeats the purpose of using the LLC. I've heard too many investors who use LLC(s) for single family rentals regret it. Remember, the corporate veil is a legal matter, not an accounting matter entirely... The top two are co-mingling funds and using the LLC as your alter-ego (just imagine the LLC as another person, a stranger to you, when transacting with it).

As for insurance, yes normally those who invest with their personal names use homeowner/landlord insurance with an umbrella policy (ref:  https://www.biggerpockets.com/...). FYI: even if your your properties were in a LLC, you'd have to or should get insurance anyway. One semi-stupid reason is so at least the insurance company will take over any lawsuit against you. Otherwise, you'll go bankrupt in legal fees protecting your corporate veil .

Keep your property(ies) in good repair to minimize the chance of getting sued.

Equity stripping is another way to limit your liability.  If you are highly leveraged, there is no equity for somebody to sue you for since the 1st lienholder would have to get paid off first...  In "normal terms," that just means in your early investing years you don't have a net worth for somebody to go after.

Oh, I suppose no chance you would move back into the home for two years before you sell to use the sec121 exclusion?

Good luck.

Anyone have contact with experienced real estate agents in St. Petersburg or Clearwater Florida? We are interested in securing long term leases on quality properties in Florida so we can furnish them and put them on the STR market (with terms written in the long term lease allowing this). Would love to hear stories from anyone having success in the area.

@Tori Magers
It's not very hard, but it will just cost more and your rate will be more than putting the property in your personal name. You will want to look into refi-ing the property into a non-QM product like a DSCR loan. Although in today's climate with where rates are at, I would say just keep it in your personal name. You can't just change it into an LLC you would need to refi since a conventional loan can not be held by an LLC or business.

Hey Tori,

You could refinance the property and put it into an LLC. You could also quit claim deed the property into an LLC, but since you are now on the radar, I would not recommend it. To be honest, its probably not the end of the world if that property stays in your name. Just make sure you have good insurance/coverage for that property. I am sure there are many opinions on this, but thats just my 2 cents.

Good luck!

 Which property manager do you use here in Columbus?