LLC Benefits

I told my husband you would know the answer! I'll call the state revenue department tomorrow to see if I can get this started.

Roni

Hi,

I am new to the DeanGraziosi site and TALD program and I'm really trying to
wrap my brain around all the LLC information. I read each post in the
provided LLC subject link and YOURS is wonderful. Thank you. I did not
even realize a business name ( or business ), when created, starts with
a fresh credit history. All I can say is Thank YOU! I'm not sure what
my next move is, I live in So. California, and while I look for properties
to purchase/invest, I am wondering STILL, just WHEN am I really truly going
to need an LLC. And how in the heck am I ever going to locate a great lawyer.

Thanks to you, things seem - at least now - a faction more clearer (smile).

THANK YOU for Posting such helpful information.

Way Sincerely,

-quicksilver
Dante

Now that's what I call, Success!

You don't need a lawyer to get an LLC, I think you can do it at legalzoom.com. Check it out here, just click this li: http://www.legalzoom.com/limited-liability-company/limited-liability-com...
You really don't need an LLC until you've got one or more properties in your name. So if anyone ever sews you the LLC will protect them from the lawsuit.
Best of luck!

I just started reading Dean's book -- Be a Real Estate Millionaire.

This is my question.

I have a C-Corp registered in Nevada and California.

Can I use my C-Corp to assign the contract without selling or giving up my Corp as I understood from your advice to assign the contract and selling the LLC at the same time; or did I misunderstood your advice?

Please advise
Regards,
Lamin

The information from everyone is worth more then a million dollars and I `m so glad to be a part of this website, I get so excited when I learn new and true information from others. Please keep up the positive flow and trust me everyone will be rewarding years from now. Everyone is so professional and seem to know so much and I will continue to check in from time to time to learn from everyone, it`s good to know that true people mean business for a change. To everyone out there keep up the great work and God will bless you all, so glad to be a part of this new family.

God Bless,
Jacqueline

just get 1 LLC witch i did and then 1 land trust pre property but as the above said can or cant we gat a loan on our LLC. or being that i also have a small business lic cant i just get a small business loan and go from there

Welcome to the DG family, we are so happy to have you join us. We appreciate your kind words and are as happy to have you here as you are to be here. Please feel free to start your own journal or ask any questions you may have. Don't be afraid to ask for help, we're all here to help each other grow and learn to become successful investors!
God bless you,

$800 per year seems to be a rather trivial amount if you're making a lot of money. If it's just sheltering one rental with little positive cash flow, I can understsaand the complaint.

Wow! This is a great thread, with tons of good advice. I'm totally new and was considering getting a LLC. Since, I plan to start trying assigns, I think I'll hold off on the LLC for now.

Thank you all!

BTW, we are starting our fourth month in this adventure and now have 7 rental units in the works. We only have one with a mortgage on it..... but its under the LLC name.

It works, so go for it.

Rohn
DeJor Properties, LLC

Wow, I'm so glad things are going so good for you! You're an inspiration to all of us and a great contributor to the site! Thanks for sharing all your experience and knowledge with us.
God bless you,

to make the four-plex work, we had to find a hard money lender to fund the property. They will make a set $2000 to loan us $170K for 90 days. Easy money for them and quick processing for us and it was all done with the LLC.

Wish us luck

Rohn
DeJor Properties, LLC

Great job, Rohn! You pursued all avenues until you MADE it work!
You are an inspiration to everyone on the site.

Thank you,

Rina

O.K. This is my first time to participate. I haven't gotten started at all except to read Dean's book and do a little research. This website is a great tool! I would like to say that Greg and I share a similar conern, that is, what comes first the chicken or the egg. I feel like we are in a buy and hold market especially in Ca. So, say I acquire a property which I plan to keep without having first est. my LLC. Can't I just add my LLC to the title? Now my LLC has some value, right?
Also, Legalzoom has an offer from a c.c. co. for a business line of credit, so yes there are co. out there that will help establish credit for your LLC.

I love my job but i'm looking for something more, so i'm looking into real estate investing as a side job with an eye on the future. I formed an LLC and i'm ready to roll. However just as i'm about to get started a tremendous credit crisis has hit this country. I cannot imagine that any qualified bank would loan my new company or for that matter even me money to purchase forclosed properties to flip or rent. Any thoughts or suggestions?

To AITF:

I doubt if the current credit crunch will affect your getting a loan at all. Having an LLC is of dubious value in doing this, as most lenders already require the owners of entities to qualify for - and guarantee - any new loan. It is possible that in time your LLC may earn a credit history that will help, but it's not a free pass. Using an LLC for investing in real estate is primarily valuable for insulating your other assets from a legal claim arising from an investment property owned by the LLC. For that purpose, an LLC is well worth the modest cost and hassle.

Of course, your LLC can get a credit card, and you will probably get several offers as a result of the LLC registration. This could be a good place to start, but it won't impress a conventional lender - pet dogs have been offered credit cards. Eventually, lenders will be doing business like they used to, insisting that borrowers be qualified for the loans. That doesn't mean you have to forgo doing deals, it just means that you have to work harder to find the financing. Try getting sellers to carry back the loan (if free and clear) or see if the existing loan is assumable. If your credit score is good, you can qualify for a decent conventional loan. Taking a property "subject to" the existing loan, in some circumstances, can be a good choice. A line of credit on your home or investment property makes a good source of short-term credit. The rates are good now, but when the prime rate rises they won't be so good.

I wish you good prospecting. Just keep looking and learning, and you'll succeed.

cactusbob

Can you transfer an existing mortgage to an LLC? If so, how is it done? I'm trying to figure out how to best start. I just refinanced a home into my name only and plan to rent it out and start buying other homes. I'm leaning toward starting an LLC for all of my REI, but need an answer to the above question first.

Thanks,

Sean

Did you buy the house outright, or did it still have a mortgage? If it still had a mortgage, how did you transfer it?

Thanks,

Sean

Jon,

I happen to live in a small town (a blessing and a curse). I met with my bank loan manager, laid out my plan, asked for a HELOC on my existing home and started buying, for cash, homes in our LLC business name. So far everything is going as expected, I even met with the bank a second time to get some reassurance from them, now the that credit crisis has hit, that they are willing to continue down this road with me. They said stick to my gameplan because after four properties it is working GREAT and we both are benefiting from it.

Here's to your continued effort and success,
Rohn
DeJor Properties, LLC

I am new to this field. Can anyone please send me infomation on how to purchase forclosure homes.
How do I get a list of these properties.

Thanks

Wydie

I formed an LLC ( Virtuola, LLC ) registered in Nevada through The Corporation Company (http://www.incorporate.com/).

They are great!

They represent my LLC as the registered agent, in Nevada, for $225 per year.

I think it was about $500 to setup the corporation, with the options I chose. You can pay a little less or a little more.

It's perpetual ( that means it lives forever ), My wife and my three children are the sole shareholders and each property is held in a trust where the LLC is the beneficiary and trustee.

When decisions are necessary, the trustee (Virtuola, LLC) polls a majority of shareholders ( I own 55% of the shares ) and decisions are made, recorded in the minutes of a board meeting at which a majority of shareholders attended ( I own 55% of the shares ) and the action it taken by the trustee (Virtuola, LLC).

They remind me when I have to file things ...
They instruct me on maintaining the "Corporate Veil"...

And they have a 50,000 Corporate Veil Piercing Guarantee!

It's just damn convenient. It's done. On to other issues.

Joet

Is there anyone out there from Northern Virginia that has information on LLC's for this state?

I have an LLC for now and will keep it to provide orginizational efficiency. I plan to do something called a "series" next, which is available in many states now. It is perfect and works best for people who buy and hold rentals for income. Using a series lets you keep the properies seperate but works a bit like an umbrella. Kinda cool so you don't end up with an LLC for each property or two.

As for bar fights...well that could be one way to get sued...lol Try thinking of it for a minute this way...this is the way my attorney puts it...Lets say one of you're renters throw a birthday party for their kid. There is a horrible explosion from a gas leak or something, and a half a dozen kids go to heaven...it's a horrific accident but they DO happen. Your liability insurance on the property for 300/500K or even a million is NOT going to cut it. You need to protect what you worked your butt off for. Not only for you but for your loved ones who you may want to pass down your properties to one day. Get an LLC or SOMETHING...it's a fairly inexpensive way to protect yourself from misfortune.

Sorry about the somber story but I wanted to make a point...better safe than sorry.

I have an LLC for now and will keep it to provide orginizational efficiency. I plan to do something called a "series" next, which is available in many states now. It is perfect and works best for people who buy and hold rentals for income. Using a series lets you keep the properies seperate but works a bit like an umbrella. Kinda cool so you don't end up with an LLC for each property or two.

As for bar fights...well that could be one way to get sued...lol Try thinking of it for a minute this way...this is the way my attorney puts it...Lets say one of you're renters throw a birthday party for their kid. There is a horrible explosion from a gas leak or something, and a half a dozen kids go to heaven...it's a horrific accident but they DO happen. Your liability insurance on the property for 300/500K or even a million is NOT going to cut it. You need to protect what you worked your butt off for. Not only for you but for your loved ones who you may want to pass down your properties to one day. Get an LLC or SOMETHING...it's a fairly inexpensive way to protect yourself from misfortune.

Sorry about the somber story but I wanted to make a point...better safe than sorry.

CAN YOU PLEASE TELL ME MORE ABOUT A SERIEIS , I HAVE TWO RENTALS AT THE MOMENT , I NEAVER HEArd of that before wondering if its cool for alaska
mike

I had not heard of it either and I found this nice explaination of it.

http://www.assetprotectionbook.com/series_llc.htm

Hope this helps.

Regards, Rohn
DeJor Properties, LLC

Wow, this thread is fantastic information.

I didn't see this answered yet.

I currently have 3 rentals (all in my name). I do not have a LLC yet but after reading this think I will form one. My agent seemed to think the umbrella was sufficient but I guess not. Will it be costly to transfer these 3 properties to the LLC and time consuming? Second question, should I update all my current leases will the new name once it is done and make my tenants sign a new lease?

THANKS A BUNCH TO ALL WHO HAVE SHARED!

Kate

The level of wisdom from this site and its contributors is just unbelievable. I true can not go a day without you guys.

I started reading every thread from beginning to end. From my study of this thread I have scheduled an appointment with my attorney to decide if I should go with a LLC, LLC Series, or LP. I feel very educated to attend my appointment d/t this site.

Thank you all.

Thanks all for your contribution. I am new to DG and the site and the information has been a refresher and confirmation of what needs to get done.

I hope to give back soon.

Best to all!

Kenny

I am just getting stated and appreciate all of the comments and information available to me. I just finished a three day introductery seminar with a well known realestate investor trainer ( no name out of respect for all). First of all I should apologize to Dean for my wanting another opinion or a comparison of information. Their is nothing I learned at this expensive seminar that I have not read in Dean's book or the information I have read on this website. I am now on board full force as of today.As a side note, to receive detailed information that Dean already gives us, their was an additional fee of several, several thousands of dollars to much to swallow.Thank you Dean, I hope to meet you soon with a success story from California.