All Forum Posts by: Mark S.

My attorney would charge $450 to set up LLC plus filing fees for a total of about $500. Seems reasonable. What do you think?

At what point would this be considered syndication? Or is that the case no matter how small the deal / how few the number of investors? Specifically, if the deals are NOT advertised and a few private investors throw some money in together (that don't necessarily know each other outside of the deal), is this considered syndication?

Bump.

Looking to start investing in January, 2017 in buy-and-hold rentals with an investor group. I want to create my own LLC which will buy into the LLC that owns each property. I'm looking for form LLC in Kentucky. A few questions: 1.) Does it matter if I do it now or should I wait two months (to avoid any annual fees, etc.)? 2.) This would be a single member LLC. Should I still use an attorney, or would an online service like LegalZoom likely suffice? 3.) Is it worth the expense of renting a UPS mailbox for privacy? Does it matter that your name/address have to be disclosed on original paperwork? Thanks in advance.

@Kevin C.,

1.) It varies based on the deal.  Usually just a few.

2.) It's not a fund, as best I can tell.  They take 25% deposit of the amount you want to invest, hold it at a bank, have 60 days to find a property and then put all investors' funds for that particular property together at the end and buy it for cash.

3.) I believe there are some out of state investors this group deals with, but let's assume all in state.

4.) The gentleman who runs the group basically does it all with his team, but I think he would be the one managing partner listed.

@Shawn Ackerman, thanks for the advice.  I am in the process of gathering this info.

Can't you have your own LLC invest as a partner in someone else's LLC?

@Scott Trench, some very good points indeed. In this particular case, what if you were looking at non-REI investments as the alternative to knocking out PMI on your primary residence. Let's say ROI of 8% average annual return. What would your thoughts be then?

Here's the link to the article I keep alluding to. Skip to the section on effective interest rate. http://artofbeingcheap.com/removing-pmi/

@James Triano, I agree with that.  Makes sense.  Two additional, follow-up questions though:

1.) Would it change your mind if the PMI was on a primary residence (non-investment/non-rental)?

2.) Do you think the part about viewing the PMI as interest at an "increasing rate" is a bunch of b.s. and just manipulation of perception?

@Scott Hollister, thanks for your reply.  I found out about it from another BP member.  In looking to be completely hands-off and just enjoy the passive income.  The person running the group would put some of their own money in the deal, be a part owner with you, and take care of the property management.  That's a major benefit for someone like me who wants to be hands-off and might not otherwise want to be a landlord.