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Thread: Who owns investment property?

  1. #1

    Default Who owns investment property?

    Are you buying properties through an LLC? Do you use a seperate LLC for each property?

    Does anybody out there use a personal holdings company?
    Ken Fenner
    PressurePros, Inc
    House Washing
    Pressure Washing Companies




  • #2

    Default Re: Who owns investment property?

    We have 2 rental properties that we own under an Confident Investments LLC, and when I come home, we plan on ramping up and buying more. We've bought 10 homes under it, but sold or re-assigned 8 of them. My goal is to have at least 10 rentals by the end of 2010, but more preferably.
    Scott Davis
    Confident Roof Cleaning

  • #3

    Default Re: Who owns investment property?

    Scott, do you worry about the liability of any one property affecting your entire portfolio/LLC?
    Ken Fenner
    PressurePros, Inc
    House Washing
    Pressure Washing Companies




  • #4

    Default Re: Who owns investment property?

    Ken,

    We have separate LLC's for: commercial rental property, residential rentals, and finished building lots.

    Thanks,
    Tim Fields
    Sign2day.com
    301-331-4117

  • #5

    Default Re: Who owns investment property?

    We have one llc that owns 8 rentals.

    7 of the 8 are rented through section 8

  • #6

    Default Re: Who owns investment property?

    Don, I've been advised to start a new LLC for each property purchased so that someone cannot go after all the assets of a larger corporation. I can understand that, especially in today's world. Are there tax or other advantages to putting them all under one umbrella?

    The market is sweet right now. There are some good buys out there. I bought my first property in October an am getting it ready for section 8 rental. I really like the duplex and triplex real estate model. Every property I have looked at has positive cash flow at today's money rate and property value. I know many of you have other business vestments outside of pressure washing so any input or guidance is welcome.
    Ken Fenner
    PressurePros, Inc
    House Washing
    Pressure Washing Companies




  • #7

    Default Re: Who owns investment property?

    Ken,

    When we started buying rentals, our attorney advised to consider up to ten houses in one LLC before we should consider forming another. We never got to ten (all at once). One interesting note as it applies to LLC's in Maryland, several years ago it was proposed at the state level that the filing fee per LLC should go from $100.00 to $1,000.00. Per LLC, per year. They eventually settled on $300.00 per year.

    What are the downpayment requirements in your area at this time for non owner occupied, less than four units?
    Thanks
    Tim Fields
    Sign2day.com
    301-331-4117

  • #8

    Default Re: Who owns investment property?

    I was in a Partnership before LLC's and owned 16 rentals and some were Sec 8. Best advice is see your CPA. Got out of rentals 15 years ago . May get back in.

    When dealing with Sec 8 enforce the rules ! With Sec 8 you can not be an absentee owner! I had a guy get out of jail and torch my house where his ex-girl friend now lived and had to deal with allot of domestic problems .The area your property is in dictates the level of trouble you inherit. I inherited some problem renters. I have friends with properties and Sec 8ters and there great.You will be dealing with the Jerry Springer Crowd !!!
    Diamond Jim's LLC
    Wood & Stone Restoration
    Pressure Cleaning
    Waterbury CT

    James Foley

  • #9

    Default Re: Who owns investment property?

    Quote Originally Posted by PressurePros View Post
    Don, I've been advised to start a new LLC for each property purchased so that someone cannot go after all the assets of a larger corporation. I can understand that, especially in today's world. Are there tax or other advantages to putting them all under one umbrella?

    The market is sweet right now. There are some good buys out there. I bought my first property in October an am getting it ready for section 8 rental. I really like the duplex and triplex real estate model. Every property I have looked at has positive cash flow at today's money rate and property value. I know many of you have other business vestments outside of pressure washing so any input or guidance is welcome.
    Ken, this where it gets "complicated". This might start a discussion.

    If Joe Blow slips and falls I have insurance in place to take care of him. If he wants to sue me for my assessts, go right ahead. He can have my 6 figure debt. I think 99% of the time that would run someone off.

    With the taxes, I have shown a "loss" every year since I have owned the property.

    BTW, about starting a LLC for every property...do you think Trump has started an LLC for every property. I dont think so. Imagine at tax time having all those EIN numbers and everything.

    One thing to ask about this year when having your taxes done is meals. My Dad is my property manager and two years ago I was able to deduct $8 a day for meals.

    I do agree with enforcing section 8. We have a good reputation in Cape Girardeau, and we fix something within 8 hours if it goes out. Right now we have a waiting list.

    I'll share this link, some of you guys might already know about this. Go to hud.gov. There is a link on there for homes for sale. There is a TON of links from there from HUD, the VA, etc, where they have houses for sale. I have picked up good deals from 15-25K. The 15K house was the best. I put 10 K into it, section 8 rents for 675 a month, appraised at 70K before the market took a hit.

    This is window were are in again. I predict it will stay open for 24 months, but I am afraid interest is really going to be on the upswing here soon.

  • #10

    Default Re: Who owns investment property?

    Great dialogue.

    Tim, the bank will give me a 75% LTV at 5.5% no pts. I haven't started shopping yet, thats the deal from the bank I have used for awhile.
    Ken Fenner
    PressurePros, Inc
    House Washing
    Pressure Washing Companies




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