1031 INVESTORS - What does that mean?

Anita,
within the next couple of months I may be in that position if I'm not finding enough good deals of my own. (right now they're abundant.) I'm setting up an LLC,which should put me in the right category. Or can a person do this without being a "business"? I'm ALWAYS looking of course, but I'm kind of waiting to reorganize after we close on our final property this week and get the LLC up & running. It's taking a lot of my brain right now.

Really nice to meet you! I'll put you in my e-mail contacts.

Rina

thank you Rina for the kind words. Up until recently I knew nothing about investing and investments but I DID know a little about real estate but Deans course is fabulous and I am soooo glad I took this step.

Anita

I set up an LLC also just so I could protect my assests, not because it was needed. You can do this all under your name with no company or business license.

D - DE

Thanks,D,for the input! I'm going to go ahead and start up the business because I have other things I want to do, but I was wondering about the properties we already have. Would you transfer them to the business or keep them as they are and just purchase any future properties through the LLC? I spoke with an investor friend and she said that's what they did this year, kept the 16 they had as is, and put new ones under the business name. Hazco Investments, is that a business that you currently have, or is that just your screen name? I appreciate the bold image in your profile picture. I get the impression you are successful at what you do.

Thanks for taking the time to write.

Rina

P.S. Did you set up your LLC online yourself, or did you have an attorney?

Yes Hazco Investments LLC is my active co. I set it up myself. Went to the county building and filled out the app. and payed the fee.

Here is what I would like to do for the future. I would like to create a separate LLC for each of my rentals, all of which would be umbrellaed unde my parent co Hazco Inv... Reason for this is what if I had them all uunder one LLC or under may name....and someone gets hurt on one of the properties and sue....they could take it ALL. If I have them under their own then only that one property is at risk. Also if you have them under your name (tisk tisk)what if you get personally sued???? Then all your props are at risk.

p.s the bull represents my stock trading investing

D - DE

OK, I contacted a FSBO last night about a 4-plex he had in the paper, got a ton of information. Really nice guy, motivated seller too. I drove by the property today. Looks good. I called & set up an appointment with him for tomorrow. I'm not sure it's worth what he's asking, but I know he's willing to work with me because of his situation. I've got a call in to the bank. No problem there, I'm sure. Anyway, to go ahead & put it under the LLC (which isn't quite official yet), what would be the first step? I'm curious what you mean about putting each of your properties under a sparate LLC. I'm going to have to keep buying and not worry about it for now and tranfer them as I have more knowledge. I don't want to lose any good deals just because I don't know what I'm doing. lol. Appreciate your input.

Rina

Hi Rina

I dont know how it works here but if you do all paperwork fast enough you can submit bid under your name if its an REO and you have around 17 days from there to close deal after bid acceptance. You could make offer in your nam and complete deal under LLC - as purchaser. If you dont have the time to do that right off do it ASAP before you rent property.

Anita,
How much of a difference would it make to wait? Is it just a bunch more paperwork, or a bunch more money? It's not an REO. The guy has several rental properties and has started a new business in town, wants to eliminate some of the managing time & get some extra money. The reason I said he's a motivated seller is because he said that he meant to start the business next year and ended up having to do it early, I could just tell from the tone of his voice that he was eager to sell. Also, I don't know how long he's had it for sale because I haven't been looking for multi-family and his ad was in the Duluth paper (across state line) instead of our local. I don't usually look there, but that's one thing I learned from Dean.

Thanks,
Rina

But its great that you are doing FSBO with no distress because it allow for you to extend your time. Talk to him in-depth and get a firm hold the work it out on paper .....then go from there.

Thanks, Anita,

I'm not too worried about someone else grabbing it because, one thing I do know, is multis here are not selling right now. Which makes me guess his has been on the market for some time. He also has a 7-plex in town that has had a sign in the yard, but he's asking almost triple what he wants for the 4-plex.
I hadn't even considered owning a multi until I got Dean's book. Was very comfortable with SFDs (is that the right abbreviation for single-family?)
We closed last week on a single-family that another investor was selling. We got a great deal. I've asked both of these gentlemen now if they belonged to or know of an REI club in our area. Neither one knew what an REI Club was. I think it's a foreign concept to us up here in the icebox of the country.

Rina

good going RINA....but about the REI club why not start one online. I would certainly participate. It may even pull in enough participants to the point that we could even consider investing as a cooperative group.

maybe we already are one? LOL

For example I have my parent LLC Hazco Investments, then I would have one for each rental.... the address LLC (king st LLC)or A.Hazco Properties, B.Hazco Properties...so on.

Most banks won't lend to your co., so get the financing in your name when you close you can do a quit claim which transfers the house from your name to your Co's name.

D - DE

Thank you for simplifying what I was trying to say...lol...

Dear Anita & D,

Well, I did it! I went online & filed the articles of organization for my LLC. I called an accountant friend who's done them for people and she talked me through it. I am now Buyers Match LLC. Good name for what we're doing, huh? Thanks so much for the encouragement!

Sincerely, very happy,

Rina

:smile: :) :smile: :) :smile: :)

Thats great. If you did express you should have it in 10 days.

I have been reading lots of you guys comments and just wanted to say great job on buying a single family home and starting your LLC. My husband and I also have an LLC and it is a lot easier to start than it was always made to sound.

Thank you. You're right. It was "suspiciously" easy online. lol
It was so easy I'm hoping there isn't something I missed.
Congratulations, yourself, on yours!
I'm excited to learn more about running an LLC, especially about transferring our properties to it. If you have any good pointers for me, that would be great.

Thanks again,

Rina

There are actually groups for 1031 investors to help find properties to divert the money to in order to beat the time frame. So if you have 1031 money to spend, check with your realtor and see if they know of any of these groups.

for those looking for this info this morning