LLC Benefits

This one is quite informative as are so many.

Remember..it isn't a substitute for legal advice. That can be acquired at a small fee and doesn't have to be even as large as some of the fees quoted here. On top of that once one did get their Self directed IRA wouldn't it be great to also be covered at no extra cost in the event of a tax audit?

Services available.
Open for partnering in business and real estate activities. Send a PM.

You can create an LLC then build up credit to purchase real estate.

Normally, LLCs do not have enough credit, for a year or so, to purchase real estate.

You will often want to establish the company then get lines of credit from companies that run only your business credit. Radio Shack is a great example. If you go to them they will give you a business credit card stricly upon your business credit and not your. Once you get this you will want to use the card, hold a debt, then pay it off.

If you have 5 or so different accounts like this your score will climb quickly. It will still often take a year or so but it can be done.

You may also want to check into correcting your own credit.

Here is a creative idea to pass through the attorney:

Use your business to partner with your self directed IRA. Your IRA loans the money to your business to purchase property. The IRA receives a note and will receive payments.

Your business then takes and rents the property... to you. The business has a lease, the lease money is used to pay the IRA.

Looking for advice- I have set up an LLC about 2 weeks ago, and still waiting for paper work to come in the mail. It of course does not have any credit rating. I just found a motivated seller of a Duplex that is fully rented that looks like a good buy and hold. Is it possible and would it be a good or bad idea to buy the rental house under my name (with umbrella insurance) and later try to transfer it to the LLC? I would need a loan to finance it, and I'm worried that by the time I secure financing through the LLC the seller will have found another buyer.
Thanks,

KandH - I own a few rental properties as buy and hold, and I simply buy them in my name, and have a $2M umbrella insurance policy for asset protection. I don't put anything into an LLC, based off the advice of my attorney. "Creates unnecessary paperwork and expense" was the advice.

As you'll see, it's very difficult to get a loan to the LLC. If you buy a place, then transfer it to the LLC, and then want to refinance in a year, you'll have to transfer back to you and then back to the LLC yet again!

That's my personal preference, but I've owned rentals for 10 years now and I'm comfortable with that legal set up.

Good luck!

Tom

I am have some buyers. Now, I need to find some motivated sellers. Since I am a wholesaler, do I need to get a LLC?

TDS properties has a good point it does add paperwork but it also ads a huge amount of asset protection to buy a property then place it into an LLC. Though you may have insurance you should not plan on using the insurance. Allow other fail safes to keep you safe then allow the insurance as a last effort.

TDS is correct on having difficulty getting a loan through and LLC. There are posts throughout Deangraziosi.com about getting this done. Once you have built up some company credit you can often approach commercial divisions of banks and have better luck getting a loan. If you work on your business credit correctly you can get a good score in about a year. This means you could, realistically, refinance into your company name when you are ready...again, assuming you have set this up correctly.

No. Having an LLC is a good idea but not a "need" for a wholesaler.

Having an LLC offers asset protection and benefits during tax time. You don't really have any assets to protect when wholesaling and you can do without the tax benefits.

Would you prefer the tax benefits? Would you prefer to protect any of the assets you currently own? Sure. Most of us do. However, many of us started doing wholesaling without a business such as an LLC for months and in some cases years.

Getting the LLC will be up to you, your accountant and your attorney.

I THINK THIS GUY CAN HELP YOU WITH YOUR LLC ISSUES

CHECK HIM OUT!

I learned that it must be at least 2 years old.
It must have a credit card from some wholesale business like Office Depot, Home Depot. He will give you all the details.
Good Luck

Chris Wise
www.creditlinemillionaire.com

Once I acquired a lot in my area, I was told by my insurance company that I would have to carry a 500,000 liability on my vehicle in order to hold an umbrella policy to cover the property that I purchased. That way if a child riding his bike happened to fall and break a leg, he would be covered and so would I. Would an LLC handle a situation like that?

LLCs can help do reflect the damage from yourself. If an LLC owned the land and someone crashed and needed to sue they would go your business. If a lawsuit was won the winner would be able to get what your LLC owned... ie. the land rather than your own house, car and so on. the insurance gives another level of protection for you. This way if you need to pay the owner you can instead of handing over the property.

Hello Anita,

My daughter Victoria and I, Sheila are brand new to Real Estate Investors and had a question as to how do we build a portfolio for free as we have no income at this time. Please enlighten us.
One more questin are we allowed to give out our email?

Sheila and Victoria

Hello Sully,

My daughter Victoria and I, Sheila are new to Real Estate Investing and wanted to know how we can set up our portfolio for free as we have no funds at this time to do so, please enlighten us on where to go on the internet. Oh and is it ok to give out our email address? Thank you in advance and have a nice day.

Sheila and Victoria

I used this source..

Veil Corporate

mandy nelson, customer relations

mandy@veilcorporate.com

I used this source..

Veil Corporate

mandy nelson, customer relations

mandy@veilcorporate.com

I thought my credit would be a hurdle in starting an LLC, but it literally never came up.

Goes to show you - sometimes the only thing standing in our way is our own thoughts.

So now I have an LLC with both checking and savings accounts.

Whether it's a corporation or and LLC (Limited Liability Co.), having a business while you are starting is a good thing.

There are many expenses, including education expenses, that you can categorize through your business, rather than take on personally. And, as such, this allows you to take advantage of many deductions that the government provides for people who think and live outside the "average" box.

Ask a tax pro how business separation is a tool that you can use to pay less tax, enjoy more profit and learn more about how to leverage your earnings...all the while providing more services and goods to our nation.

This has been a real helpful thread of comments!
Very very true!
This forum that Dean created is one of the neatest things I have ever seen. Imagine a legal way to allow students with a same goal, direction, and level of motivation to communicate with each other to pick each other up, help each other along, give helpful tips and tricks, and to ultimately pick our economy right back up where it needs to be for all of us.

I love that people from all walks of life, and with different areas of expertise share information, and ideas with each other ultimately picking each other up. Together we will all be better than the sum of all us us added up. That's what this is all about!

I love it!

Such an amazing asset that dean gives us access to. Everyone that participates in this site always teaches me. Even as a coach for Dean, I learn things every time I come in and read what you all have to say. We are all potential team mates in this program, and not competitors. Thanks so much for all of your input.

Happy Investing.

Matt W.

Thank you for that information. I was just think about how to build my business credit. Thanks again.

will LLC protest me from my SSDI? and will it protest from my boyfriend's exwife from increasing sponsal maintance?

I am assuming the word you are using "protest" is meant to be written as "protect". If this is correct? The answer is it depends upon what you are protecting from. If the ex-wife has claim on child support and the spouse tries to hide under an LLC there is not protection for this. However, if for instance the ex is renting from the spouse, slips and falls then sues there is a large amount of liability protection here.

I'm brand new at this, just joined Dean's Academy and bought a couple of his books which just arrived yesterday. I'm very excited and also a little scared. Reading these forums helps a little with the fear aspect.

Anyway, I was going to ask about LLC's, but I gather that if i start by just doing assigns then an LLc is not needed. Now that I know what one is for.

Thanks for the help!!7

I have sent the name of my LLC and it has now been about 2 weeks and still no reply. Today is May 12th 2013. Please, a little help.

Good information in these posts.
J&S

So what it take to do a land trust. (fla)

My understanding is llc can be free in UTAH
as you register in a off shore country .

Im a Canadian and ive been told that in order to open a bank account in Wellsfargo Bank I have to have a LLc set up first .

This is essential in buying and selling property as I think you could be sued on a breach of contract .

Your question, a little vague, is a little hard to answer. The reason to this is what are you trying to do? Are you setting up a trust to transfer your assets in the case of death? Are you setting up a trust to hide ownership and do an assignment without others knowing? Are you setting up a trust to sell a property without complications?

Trusts essentially have three people involved:
1) Trustee
2) Grantee
3) Grantor or beneficiary.

Trusts generally have documents:
1) Trust Document
2) Beneficiary Interest or similar.

You can have different names for the Grantee, Grantor and you may have more documents attached to the trust such as a transfer of beneficial interest or occupancy agreement.

This, again, depends on what you are doing with the trust.

Trusts are not, in almost all states, recorded anywhere. Thus the extreme ability to create anonymity. Most trusts are cheap and the documents used to create the first trust can be used over and over again.

A starter book to consider reading on trusts is Land Trusts for Privacy and Profits by Mark Warda. There are other books but this gives a good starting base.

LLCs are fantastic for business. They are generally suggested to obtain.

In Utah the cost for an LLC is $72 if you do the paperwork yourself. However, most people are not comfortable and unsure of how to set up the LLC on their own so they pay someone to make sure the LLC is created correctly.

LLCs are not required to do business. You have never needed an LLC to do business. You can do business in your own name. However, is it suggested to have an LLC. YES. The reason is it gives you protection and tax write offs.

For some people they cannot pay the cost to create an LLC. Fine. Do a couple of wholesale transactions then get an LLC. Will you run into problems? Most likely not but you may run the risk. If you have no assets to take most people will leave you alone and if you have never done a deal you do not need the LLC (need is the operative word). Again, it is suggested to have an LLC not not a NEED.

All the best.