All Forum Posts by: Yisrael Weiss

@Pauleen B Atkinson @Ali Boone

Thanks!  An umbrella policy does sound like its the way I'll probably have to go.  I still want to speak to an expert to see if I can somehow leverage the fact that my partner doesn't live in CA. Pauleen do you want to recommend the attorney you spoke to?

@Matt K.

The LLC isn't to protect a "couple grand in cashflow". It's to protect my personal assets. And I'm not worried about 800 bucks. I'm worried about $800 x 100s of potential LLCs as I grow my portfolio.

I'm not sure why I feel the need to defend myself from someone that's probably just trolling, but for the sake of my limited reputation, I'm not a slum lord. For reference this particular property is a ******** in a B+ neighborhood that I am rehabbing into a high end property. And while it is apparently peanuts to you, I don't think there is anything wrong with taking in $200-$400/mo in profit per door in an SFR or Duplex.
 

@Katie L.

Thanks for the input.  An $800 fee isn't really nominal when you consider some of these LLCs may only generate 2-4k in cash flow each year.

It sounds like your advice is that I really need to seek the council of a real estate attorney and CPA.  I'll do so!  If you have a recommendation let me know, otherwise I'll continue my web search.

@Katie L.

Thanks!

Can I ask another question? I happen to have a partner in these (and likely future) properties that lives in MA. Would a potential workaround be for him to have all the individual property LLCs in his name only but then create one umbrella LLC that owns all the individual LLCs and have both our names on that one?

If this solves the tax issue, am I opening myself up to legal issues should this partnership ever go south? 

Thanks again!

Edit: in reading that article you provided I see "series LLC" are not allowed in CA. But I'm still curious if since my partner would be the owner of the individual LLCs and we would likely form the umbrella LLC in a state outside of CA, this may be a viable option.

If not, what would you recommend?

Hello brain trust,

I'm purchasing my second property in Ohio as an out of state investor living in CA. Everything I read said to put each property in it's own Ohio based LLC and each with its own bank account.

As I went to create my second LLC my agent warned me that due to California's tax rules I may end up spending more in taxes than the decreased liability of having the properties in separate LLCs isn't worth it.

I am reaching out to my accountant, but is this anyone else's experience?  I know there's tons of CA investors so hopefully someone has some insight into the best approach.

Much thanks!