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ctrmrz31

Should I be concerned with a LLC ?

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no prob bob, if I can share my thriftiness I am down with it.....but I don't know if that will work for sure. But I am in a strong sellers market and am thinking about buying conventional and sell via l/p to my LLC, then l/p from there. Don't get me wrong I will still look for a sandwich lease but may have to settle for a patty melt.

 

Play the odds off 25% t/b actually buying. Even if they do I will not loose money, TRUST ME. :)

 

Cruz and Brandon good luck hope this helps

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Welcome back!!! How did the REI meeting go?
Thanks, Mike. It went well. Lively and friendly crowd. And I love the northeast in October. Tough to beat for a soul soothing experience.
By any chance you know where to find how to make an LLC online for NYS? I have used google and have been unsuccessful, all i have found are sites that charge $364-$600 to get it done.
No need to pay anyone to set up an LLC for you. Go here for information. As is often the case with good ol' NYS, they make things a bit more complicated than necessary. Nevertheless, you can do it yourself and save money. Or, at the very least, shop around if you aren't comfortable with the process. Or ask some fellow members of your club if they can assist you.

Michael,

 

Thanks for the link, I now have all the paperwork filled out pending my first deal. How great to see that for $75 NYS can get this done in 24 hours. I didn't think any beaucracy in my state can operate that quickly.

 

Mike

:ph34r:

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-Hey ctrmrz31

 

I currently have had a l/o go upside down and am now being sued by the owner. With this deal being signed by me personally, I have learned the hard way the importance of an LLC. Remember with all the benefits of L/Os, you are working with (3) parties in a deal: the owner, you, and tenant/tenant buyer. If one of the three parties fails to meet their obligation with in the deal you may be left holding the bag and find yourself in trouble.

 

Please, especially being a newbie, save your nickles and get your business set up in an LLC. You want to keep what you have worked hard to get.

 

<Steve>

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Hey Steve! I hear you loud and clear and I have been trying to collect my pennies, as you put it, while marketing myself at the same time. It's hard, but I am confident that this will all pay off in the long run. I don't wish to lose all I have worked for because of someone's defualt and if all works out as planned I will have my LLC when I get my first deal in writing.

Thanks for your input Steve!

Cruz or Brandon

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Hello, Maxmagic, and welcome to The Naked Investor. If you visit www.sunbiz.org you'll find all the information you need for setting up a Florida LLC. Let me know if you have any questions.

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As the story goes... an investor established a line of credit with a bank in his community, then used the credit line to buy homes at a discount to Fair Market Value.  This man ended up owning around $1.5MM worth of real estate and he had NONE of them protected legally.

 

Something happened with the bank and I believe somehow he got a little behind on a few of his property payments.  The bank was pressing to reclaim everything, all, he had. I believe he ended up becoming a motivated seller.

 

Today, we know that each property could have been set up as its own business entity and he would not have lost all his property but just the few that were financially distressed.

What is important in this story is NOT the fact that the investor failed to use a business entity, but that the investor used a LINE OF CREDIT. I am guessing that the bank foreclosed on his credit line and ALL of the collateral used to secure his credit line was exposed to foreclosure.

 

I have seen credit lines structured in such a way that all equity in property purchased by the credit line is used to secure the note -- even if the equity is larger that the amount of the note in the first place. This is what cross-collateralization is all about. The bank gives a release of its lien against the property, only when the credit line is paid off.

 

If this is the case with the investor in this story, then his problem would have developed in exactly the same way even if he had a business entity in place. Based on the scant details concerning the financing, I assume that the investor personally guaranteed the loan, and personally pledged the equity in his properties as collateral for the loan in order to end up with this result.

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Does anyone know of an internet site where I can get an LLC in California. I looked on www.Bizfilings.com They are about $215. Is there a cheaper place.

 

Also, does anyone know of a book or web site that explains how to run an LLC. ie. meeting frequency, tax filing, how to put the LLC on title of a property?

 

Thanks,

 

Ed

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Ed, chances are you can do it yourself. Visit the CA Secretary of State website for setting up your LLC. It is state specific, but most state's have a streamlined process that can be done online inexpensively and quite quickly.

Also, ask our Legal Eagle about this and give him something to do. He is Sacramento based, and has a lot of clout with the State bigwigs. I know for a fact that he hangs with the new Governor on weekends :) .

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Most folks setting up a single entity LLC are not required to use an EIN. To verify whether or not you do, you can call the IRS Business and Specialty Tax Line at 1-800-829-4933.

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Just received the paper work back from the Secretary of State here in NC and it's official. My company is Triad Management & Realty, LLC. It took about a week. Had to do it by mail and cost $125.00. Cheap Insurance.

 

<Steve>

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Just received the paper work back from the Secretary of State here in NC and it's official.  My company is Triad Management & Realty, LLC.  It took about a week.  Had to do it by mail and cost $125.00.  Cheap Insurance.

 

<Steve>

Damn! I was just about to sue you, too! :D

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