All Forum Posts by: J Zev J.

After you set up your LLC with the state you can apply for an EIN with the IRS. If it's a single member LLC then the default is to report the business activity on your Schedule C or Schedule E (depending on activity type). You still can get an EIN for this scenario. You would file an 1120S or standard 1120 if you file a special election with the IRS for your single member LLC.

Markets are constantly changing, and there isn't a perfect one. I think you should list your top 3 criteria (eg appreciation, low crime, good schools, etc) that you want in your market and your top 3 criteria (eg high crime, low returns, high property taxes etc) that you refuse to invest in. Start a spreadsheet and then look at 50 potential markets and rank them based on each of your criteria. See which markets you can narrow down through this method, weigh the pros and cons of the finalists, and then pick a winner. Commit to build your team there, invest there for at least a year, and then reassess the markets again after a year of investing there. Every investor has different criteria that will attract them or repel them from a market so really think about the criteria that is most important to you.

Just wanted to throw it out there that Warren Buffett has said multiple times that the more important classes to take at business school are accounting courses because they start you off with the 'language of business'.

I always recommend working with an attorney to structure this. You'll definitely need an operating agreement. Setting it up properly in the beginning will save yourself many headaches in terms of legal compliance and tax consequences down the road. 

I think in general, it's simpler to start with one bank account if you're the only owner. There normally aren't that many transactions for rental properties and as long as you'll be able to track which transactions apply to which properties you'll be good. As you start to have more transactions it will then make sense to have more bank accounts.

I think you should research the differences between a JV and Partnership and that might help you structure it better - and so you don't run into any unintended tax consequences.

I recommend speaking with an attorney who is familiar with the raising capital (securities) rules before you meet with any investors. 

Hi @Natan Gutt - I think what Dan is recommending is to think of the long term picture. You'll want to have a relationship with a bank as you expand your portfolio which is normally easier with a local bank or credit union. In terms of your other question, yes it's good to keep the rental activities in a separate bank account. Just look online where you're located for banks with good reviews for online banking. Check out the reviews for that bank's mobile app too before deciding.  

The go getters that keep their clients updated on a constant basis. Also, having the integrity to disclose any possible conflicts of interest.

@Maria Bakaj Please send me his information too. Thank you.