This audience question is submitted by Joan P. Thank you, Joan!
Her question was do you create your LLC before or after you purchase your rental property. If you are going to go the LLC route (and I discuss reasons why some people have rightly chosen not to), then you need to create the LLC beforehand. This is make sure their are no problems with the banks calling a mortgage due, also to ensure your sales contract is not invalidated. Enjoy, and let’s spread the word about affordable rental properties are in every neighborhood.
38 Comments
Akbar 3nibaa f tari5 hhhhhhhhhhh
Thank you Lisa! I appreciate your videos and blog, they are a great help and a wonderful inspiration for people like myself who don’t know about real estate investment.
Thanks Joan! I got more coming for you! Let me know when you finally find a property you are thinking of purchasing. I want to see pics!
You’re doing great!
Hi Lisa,
We are ready to officially go forward with our business. I would like your
opinion about setting up LLC. I live in NYC, but will invest in SFR in NC.
Should we go with a company like RocketLawyer (recommended by
BiggerPockets) to set up our LLC? I needed to know the best state to set up
an entity. I know you can set up a entity in a different state from where
the business will operate. So, I wanted to make sure I am doing this right.
Please advise.
From Dana
Hi Dana. General rule of thumb is to use Nevada, Delaware or Wyoming to incorporate. Delaware and Wyoming are cheap (~$50 – check their secretary of state pages to find out the filing fee for the articles of organization) and Nevada is ~175. Now, whatever state you actually do business in, there will be a separate foreign business fee to pay to the state (it costs the same as if you filed there, but their jurisdiction ends there).
He is my role model..Even tho parody kinda hurtful
LOLOL
Very good info. One more thing, an S-Corp is also a viable option. I have
one, but you have to pay yourself a salary as an employee of your own
business, as opposed to an LLC that it’s not needed. I hired ADP payroll
services for a very small fee and pay myself tiny salary as an employee of
my own business. It’s easier to keep the books that way tax wise, and an
S-Corp gives you as much protection as an LLC. Very good info! Please keep
it up!
Hi. Do you have to create a separate LLC for each property you purchase or
can you use the 1 LLC to buy multiple properties?
another informative video from the investor with the pretty smile. thanks!
What Happened to Flammy?
Not to sound funny or anything but what exactly is an LLC
Could I get my llc . In another state then buy my house somewhere else
Hi Lisa love your channel and your spirit just start following you I have 2
properties one is my primary and the other rental. You have inspired me to
move on and I have see another vacant property went to city hall owner owes
$11000,00 in taxes try to find the owner to find out what the status is at
no avail what do I do?
Thank You!!
oo its so nice!! i will do a maincraft!!
Does PENFED refi an LLC
Thank you for the info.!
SR
thank you Shean!
Very informative.
Good Video…i would like to add that the llc is a great business model,
however due to the federal court system it has a huge draw back in the
business of real estate. Being a landlord and owning an llc that your
lease is in leaves you open to a huge disadvantage…the law recognizes you
as an , agent not the landlord. This a huge pitfall because you are
consider a debt collector and fall under FDCPA. you don’t want to get the
tenant evicted on to follow up in federal court and owing them more money
than your judgement is worth. just thought i would add that to your video,
but i love your videos you and me are on the same path and i look forward
viewing all your videos.
Thank you@ as I have evolved and learned, I now prefer LLPs to LLCs due to its smaller audibility rate.
You’re doing a great job!! Thanks so much!
thank you!
your awesome, love your everyday joe vibe!!!!!!!!!!!!
Good job , lisa i Emailed you ,still waiting for your reply
Thanks
got it!
Hey Lisa, I’m a landlord in DC. I need to set up a LLC. This is what I’m
doing. I’m converting my 4-unit apartment into CONDOS. Once this is done.I
plan to live in one and sell the three or rather two to paid off the hard
money loan…the third one will be profit. What Entity do you suggest?
I will always prefer you do an LLP over and LLC. Its a bit more paperwork, but gets audited significantly less.
Do you know anything about starting an LLC in California?
Do you know anything about Trust?
I know you should create one on your laptop, and if you establish an LLC or LLP, you should make it the owner. Yes, sir.
Looking to make my first deal. I don’t intend to buy and hold at this time.
I have no personal assets.If my first deal is a fix and flip, then will it
be ok to get an LLC after?
Authentic! Appreciate the genuine advice. Relocating from the BayArea Cali
to NJ/NYC ready to start researching opportunities in those areas.
~Angel
Thanks! Willing to Drive for the deals. Whatever makes sense, sacrifice
sacrifice sacrifice. 🙂