Posted by Joe on June 15, 2005 at 19:27:31:
It did.
Thoughts on each property in a seperate LLC - Posted by joe
Posted by joe on June 15, 2005 at 07:13:36:
I wanted to get your thoughts of placing each property in a separate LLC.
Or, should I put all my properties under one LLC?
Or, should I place 5 properties under one LLC and the other 5 under a different LLC.
Any thoughts/comments/suggestions ?!?!?!?
Thanks
Joe
Re: Thoughts on each property in a seperate LLC - Posted by Mary in CA
Posted by Mary in CA on June 15, 2005 at 13:15:21:
Multiply the paperwork and fees on 1 LLC by the number of LLCs you would/might have.
It’s tedious enough to do the paperwork on one corporation . . . unless I had a staff of 20, I wouldn’t have more than one. ugh
Maybe you have more time, energy, help than I do . . .
Mary
Re: Question on Phil(NJ) scenario - Posted by Brian
Posted by Brian on June 15, 2005 at 10:03:23:
Phil…I agree with the way you explained setting this up as I’ve read that scenario before. My question is once this is set up how do you handle the existing leases with the tenants? Do you then draw up new leases naming the LLC as the ‘landlord’ and yourself acting as a representative of the LLC?
Just trying to understand what information should be on the lease…and what the tenant should and should not know. 
Thanks!
Brian
Re: Thoughts on each property in a seperate LLC - Posted by nick
Posted by nick on June 15, 2005 at 09:33:37:
When you form an LLC, dont forget about the 500 annual fee to the irs. If you own alot of properties that fee will add up and it may not be worth it.
Re: Thoughts on each property in a seperate LLC - Posted by Stan
Posted by Stan on June 15, 2005 at 08:18:13:
How many properties do you presently own? That would be a determining factor.
Re: Thoughts on each property in a seperate LLC - Posted by Phil(NJ)
Posted by Phil(NJ) on June 15, 2005 at 07:26:32:
Its inpractical to have a LLC for eash Prop. Suppose you have 95 properities? Put each Prop. in its own Trust (125 Main ST. Trust, for Ex.)and have your LLC as the benefactor, with someone else (out of area or state) as trustee. Now no one knows wh owns the prop. (Harder to get sued).
Re: Question on Phil(NJ) scenario - Posted by DavidV
Posted by DavidV on June 18, 2005 at 22:10:34:
No need to draw up new leaeses until they expire. Just send them a letter telling them who the new manager will be and any change of payment address. If you have to evict take a signed management agreement from the trustee to whoever will be managing the property. I also take a certificate of trust that shows the property was deeded into trust. (It doesn’t show beeficiary) I haven’t needed it,the few times i have been the tenant has never shown up.
David
Re: Thoughts on each property in a seperate LLC - Posted by Natalie-VA
Posted by Natalie-VA on June 15, 2005 at 18:50:58:
Nick,
Can you clarify what $500 fee you are talking about? Is this located somewhere on our tax returns?
Thanks.
–Natalie
Re: Thoughts on each property in a seperate LLC - Posted by Phil
Posted by Phil on June 15, 2005 at 10:00:25:
Well Nick, this may be true. But without some asset protection, would youu want some tenant to sue you and come after your personal asset’s? Like cars, your pay check for the next million years. All the pros on this site, including the super well respected Bill Bronchick, strongly recommed asset protection, in the form of a “C”, or “S”, or LLC, plus its smart to have a Land Trust as well.
Re: Thoughts on each property in a seperate LLC - Posted by Phil
Posted by Phil on June 15, 2005 at 08:23:32:
Even 1 is enough for an LLC and Land Trust. Nothing should stand in your way to protects your assets, by that I mean not just real estate, cars, boats, etc. Try getting sues with a corp or LLC.
Re: Thoughts on each property in a seperate LLC - Posted by joe
Posted by joe on June 15, 2005 at 07:49:57:
Hey Phil,
What do you mean by trust? How would I go about doing this?
Thanks for your help.
Joe
Re: Thoughts on each property in a seperate LLC - Posted by nick
Posted by nick on June 15, 2005 at 10:05:56:
The question whether to form one LLC for each property or multiple properties under one LLC. My point being is that if you have multiple LLCs you will be paying the annual LLC fee for each one, opposed to paying one fee for an LLC that incorporates all the persons properties into it. I never said forming an LLC is not an asset protector nor did i say i wouldnt suggest it.
Re: Thoughts on each property in a seperate LLC - Posted by stan
Posted by stan on June 15, 2005 at 13:14:12:
Sure one is enough. But my point I am making is that is now the right time to be thinking of setting up an LLC. Or thinking od putting his properties in an LLC. If he has no properties, this would be the last thing I would be considering. May not be for everyone, but just my opinion. When a person is just starting out I think that they should be concentrating on getting that first couple of properties. Then re-evaluate and see if there is a need for an LLC/Corp then.
Now if he says he is already has several properties, then yeah, now maybe an appropriate time. But just starting out, he may go through the steps to set up his LLC, get his framework for trusts established and never buy the first property (which happens quite a bit). How many dormant bank/checking accounts do you think are established. Get a couple of deals under your belt and then start thinking of these other necessaties.
To answer yur question, people with LLC’s get sued every day. LLC will not prevent you from being sued. Will not prevent that asset from being taken. It is just a ‘blanket’ or shield for that asset.
Re: Thoughts on each property in a seperate LLC - Posted by Phil
Posted by Phil on June 15, 2005 at 08:20:58:
Bronchick has an excellent course sold on Cre here. We are talking about a Land Trust. It is really a device to hide ownership, its a beautiful thing. I received 649 hits when I searched Cre for “Land Trusts”, so check it out.
Re: Thoughts on each property in a seperate LLC - Posted by Joe
Posted by Joe on June 15, 2005 at 11:49:50:
Sounds dishonest.
I like that.
Why do you keep using that persons email address? - Posted by Killer Joe
Posted by Killer Joe on June 15, 2005 at 13:52:19:
joe,
Why do you keep using that persons email address when time and time again that person asks this board NOT to respond to your posts because it goes to his box.
Use your OWN email address and leave that poor fellow alone. (Yes this will probably go to his box)
KJ