All Forum Posts by: Rod F.

I have two homes in my IRA, you are exactly right I lose

all writeoffs (taxes, insurance, maintenance) as well as depreciation

Now it makes 18 to 20% return in tax deferred income. At least I know how to make money on a house. it's not like the guy calling me telling me we need to move this investment into that investment so he can bleed a commission out of my account. house one paid for house two in three years. the two houses should buy house three in two years. all inside the IRA. Call me crazy, but my plan is to take some of the rental income as disbursements when I retire and never touch the assets.

I was sued personally, Due to business activity not protected by llc. (most of my properties are in an llc). they went after all my personal assets. found out from lawyer, sell off everything except your home, and a car. Can't take that.  all sales have to be open market sales at market value to non relatives. arms length transactions. The moneys I collected went to the lawyers for litigation. I had a house in my name I raised my family in paid for took 25 years .(not in llc held personally) I had not lived in it for 3 years was a rental, it was a big target. A heloc took that target away.  They didn't want something that had a huge debt against it.  Even a divorce was planned to save her 1/2 of our marital assets. And possibly bankruptcy. This took 5 years before litigation ended. 

now the rest of the story, the properties I am a partner with were in an llc., they were brought up once in the beginning of the suit. showed llc proof. were never mentioned again.    there was about 35 properties. 

so yes I got a very expensive education on llc's. 

I closed and lost a business, (wasn't in llc). sold motorcycle, boat, business assets, refinanced a paid off home,  lost a vp position at my job, just about lost my 30 yr marriage, almost had a nervous breakdown, became a virtual recluse.     

all of that because i didn't know that i could have started a llc for 50 bucks. so yes a few hundred bucks a year is very much worth it.

my attorneys first words when i took the lawsuit to him was.

"Lets not do any more business that is not in an llc."

I really cant elaborate anymore than that.

Btw every time there was a change in the case I went to my banker, set in his office, kept him informed on every step.  Talked about personal bankruptcy, and that I would need his help to re-establish credit if needed.

Now 3 llcs and a trust.  everything has own bank accounts, credit cards, ein numbers,  I don't mix any funds. not even gas for a car. one of the llcs own a truck and trailer. That sounds like a lot but it hasn't cost me 1/10th of what it cost me for not having one.   And I have lots of corporate veils to pierce. And more are coming. I learned a valuable information you personally own , a house and a car. 

The HELOC should give you a 80% loan, ( as good as you can do on a refi ) it Gives you the freedom to act when you need it and you owe nothing till you use it. Unless your trying to own the new property personally the LLC can own as many property's as you want.

Personal guarantees are usually required on all my loans. But I'm in this for the long haul. been 10 years now. Buying no Money down, In house loans.  

Here Arkansas secretary of States office, online , 50 bucks,  30 minutes, in your living room.  like earler has said get your Fed EIN number. 

I have a friend that has taken a lot of finance classes, he analyses many of my deals. we discuss them , he tells me how it can work or how it cannot work in his opinion. tells my how much of a % of a return I am getting over the regular rates I would get elsewhere.

He tells me that he is going to start doing this because the numbers look so good.

Now the rest of the story is. while he has been analyzing all these deals. I have been buying for 10 years now. I recognize a good deal, that fits in my parameters. I figure the rehab costs as close as I can. I buy , rehab, hold, and move on to the next deal.  

while the whole time (for 10 years) has suffered from paralysis of analysis. with all that education, ad experience. you are well ahead of most investors.

Define your parameters,  look for that deal and get your feet wet.

Good luck,

Go look at the comps in the area, I have had two laminate  houses that have been ruined by water, something that was caused by a MOP!!!.  Tile high traffic areas, and I am carpeting bedrooms, changes the look and a warmer floor in bedrooms. usually bedrooms are not the ones that get all the traffic  My current house is 100% laminate, starting to go back and carpet bedrooms. Tile will be added in traffic areas. Nothing is perfect. A renter can figure a way too ruin what ever you install.

guaranteed yes , but llc loans are not on your personal credit score. they are their own entity. Ours even have their own credit cards and accounts. soon to have their own Dun and Bradstreet rating.  Talk to your accountant and banker don't take my word for it.

each has its own bank accounts, credit cards, ein numbers,  I have spent a lot of time and money on this. 

 Believe what you want. I see it every time I close on another house. over 40 of them and buying more something is working.  Partner and I compair who's score is higher every time we close on a deal.   Almost a game with us.  who's lowest buys lunch.

1.  A 75 dollar lawyer letter will do amazing things and stop actions. dispute that you never received any change orders from original quote.

Or

2.  Send the agreed upon payment with paid in full on the line item on the check. If they cash it , you have proof you paid it in full.

Either way it's no fun dealing with a Bad contractor.  I dealt with that last year.  After that I went to BBB website to find any major contractor I need . It cost me more upfront. but professional all the way after that. Change orders. and exact quotes.  they even refered other contractors I needed for other work.

I use po box for everything. I don't want rent checks and legal documents in a mailbox on the street.  PO box is more secure.  Also no disgruntled x renter (for what ever reason) Has easy access to my personal address. .  

I have seriously considered buying a system like the one I have at home and self installing it in each house during the rehab. it's easy to install and no contract is required. if I want a contract it's 14 to 24 bucks a month  if I want the full system.  Also could be offered as an upgrade to the sales or rental contract if wanted.  I like mine its all ran wireless and has cellular backup. and I have a second video system also. simplysafe.com is the name of the company I use.  FYI I have no affiliation with the company besides i am a customer. I replace the batterys once a year.