So, my wife and I are looking to add a 4th rental property to our collection. Question is: at what point do we consider making it a legit business? We each have our own business and do the property thing on the side including renovations and managing. Should we look to making this property thing an S CORP? Thoughts, comments, and advice welcome.
Hazel Roberson: Also, all properties in San Diego Ca if that matters.
Adam Ramirez: Nina Gabrielle Ferraro, could you offer advice?
Maximiliano Patton: LLC for holding S-Corp for flipping
Leah Ortiz: Do an S-Corp for any rehab stuff you do. Rental property do LLCs. If possible in California do a series LLC and keep properties separate
Leah Ortiz: Look up Mark Koler on YouTube, he is a lawyer and CPA; he has several videos on this kind of stuff
Tiffany Austin: Wow great info.
Leah Ortiz: He is awesome!Also has a podcast called Refresh your Wealth …All on tax and legal tips for business owners and Real Estate Investors
Tiffany Austin: I will definitely look him up
Hazel Roberson: Leah Ortiz: I will definitely check out the vids. Are you basically saying make the renovation part a separate business from the rental management?
Leah Ortiz: Yes
Tiffany Austin: @ Hazel Roberson:. Do u also need stagers for your properties?#Staging Ninjas on Facebook. I am also OSHA certified. We do stage rentals as well. PM me at [email protected] for more info.
Hazel Roberson: Havent really had to stage anything yet, but I will save this info. Thank you
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Tiffany Austin: Thx. Would love to work with you in the future
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Tiffany Austin: Thx
Kaleb Klein: An LLC for the properties is a great idea, but CA charges $800/LLC every year as an annual fee. Do your research and consult a lawyer before you take the dive!
Hazel Roberson: Yeah, we just turned my wifes biz into an S CORP, so I know the filing fees change. No biggie, just want to make sure we are not losing out on any financial benefit
Kaleb Klein: Hazel Roberson: its more the liability you are saving, but same idea. Keeping assets protected is the goal
Riley Greene: Long Beach,ca. There are less affordable rentals. And little stock of homes.
Kayden Watson: Most set up LLC using street address of each property. Keeping funds separated is key.
Hazel Roberson: Oh tell me about it! Juggling bank accts, cards, and statements if a full time job in itself
Kayden Watson: This is what I do.
Johanna Lambert: Reach out to Rick Melero with HIS Capital Group. They have a partner in California
Carter Washington: following
Carter Washington: What if youre not sure if youre going to hold on to a property? I am thinking of buying a property to be used for rental for some time, but I may after some years flip it if the price significantly appraises. I have not invested in any property yet, but im looking to buy a property where I would stay at times, and when I am not around, rent it out.
Hazel Roberson: ^ great question
Ava Grant: Plan for holding, adjust sales negotiation strategy to accommodate any downside or additional expense by focusing on long term rental
Lia Banks: Following …
Selena Reese: We can help you with Florida investment properties. Visit our website. www.realpro.com
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Real Pro | Investment Real Estate
Paisley Copeland: I havent heard of anyone going the S CORP route until they have a fairly significant amount of properties. LLC is cheap and simple for a smaller portfolio.
Marilyn Webb: The nice thing about a corp is the rental income can be put into a UNIK or SEP IRA and therefore deferred. If you want to set this up – hit me up!
Maximiliano Patton: IRA can own an LLC
Marilyn Webb: Roth IRA is great to buy RE and rarely get audited and never pay taxez
Danielle Watts: Only if you want protect your assets have tax benefits and with a Corp even more benefits. The best of the best for any state is Anderson Advisors. Theyll give you a free consult. andersonadvisors.com
andersonadvisors.com
Asset Protection and Tax Advisors
Olivia Porter: If both you and your wife also have separate businesses you should meet with an attorney/tax advisor. Theyll give you better advice for your personal situation than the internet.
Avery Higgins: .
Georgia Santos: Absolutely!!! For Protection and the Tax Advantages. PM and I can get you some information for an amazing Tax Attorney and CPA in CA.
Marilyn Webb: Yes but if u ask 5 attorneys 1 will say llc. One will say C Corp for Taxes and one may say Pure Equity Trust as limited partner for asset protection.5k/yr fees. So like the internet attorneys advise will also vary
Alejandro Diaz: I cringe everytime I hear someone say the word LLC when involves property. Its a great way to lose everything you have worked for , should you lose in a lawsuit…..smfh
Hazel Roberson: so, in favor of s corp?
Alejandro Diaz: Of course, what people dont understand is llc means limited liability, meaning you still have some liability, with an s Corp, the liability is 100 % on the corporation. Not you personally .
MIDDLE NAMES FOR GIRLS THAT SUIT JUST ABOUT ANY STYLE Cook: Can you explain what happened to make you think this? Im curious.
Alejandro Diaz: JCGlancy being an attorney for 9 years and representing around 160 clients that formed an LLC. That is what makes me know, not think.
MIDDLE NAMES FOR GIRLS THAT SUIT JUST ABOUT ANY STYLE Cook: Thanks for this. I was under the impression that the corporate veil has almost never been pierced. Can you give me some examples of things that have happened where people with an LLC have lost everything if they lost in a lawsuit?
Emely Stephens: She is an attorney, you want free advice? SMH
Alejandro Diaz: Emely Stephens: and you are shaking your head why?
Emely Stephens: Alejandro Diaz: You are an attorney, right? You are not in the business of providing free advice on FB. Or are you?
Maximiliano Patton: Who was the attorney that lost for their clients? The LLC is the protection needed. Or they pierced the veil.
MIDDLE NAMES FOR GIRLS THAT SUIT JUST ABOUT ANY STYLE Cook: Emely Stephens: she said she was an attorney. I dont know how asking for more info is soliciting free advice. Im genuinely curious. I guess I should pay you too for being a keyboard warrior huh?
Emely Stephens: JC, good luck buddy.
Alejandro Diaz: Emely Stephens: , I dont mind giving basic common advice, I wont spend time going into great detail for free, however some quick good advice is all someone needs sometimes to get started in the right direction.
Alejandro Diaz: MichaelSobotka , you are 100 % incorrect.
Marilyn Webb: Exactly – each property and cars all in sep trusts. You are beneficiary not onwer. This of course requires attorneys.
Piper Porter: Look up Mark Kohler – he is awesome for questions like this!!
Alivia Marshall: Har.com
har.com
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Ariella Joseph: Great post and information.
Omar Aguilar: Where are you located?
Hazel Roberson: San Diego
Kensley Saunders: We too have struggled with this same question … please let us know what you find helpful
Piper Porter: We started an S-corp as soon as there was more than one entity.
Marilyn Webb: For asset protection FLP with pure equity trusts as limited partners. C Corp is Gen Partner. 1%.If u need Attorney email [email protected]
Kehlani Fernandez: An S-corp for liability and tax purposes 🙂 also allows you to spend down or up whatever the need be without actual personal holdings.
Marilyn Webb: IRA owned Real Estate is good if you have no other option but nearly all get audited constantly. ROTH. IRA owned RE is far better no taxes and rarely audited.
Jude Cruz: Each property should have its own LLC for liability purposes if you have any need for funding or insulting look up mortgage group LLC.com one word
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Luis Nunez: You need to have a Legal Advisor, or a portfolio manager
Mary Gonzalez: Yes absolutely. Create cashflow…legacy wealth. Form an LLC and keep rolling. Owning your own biz and living on cashflow investments can be very different. Good luck building your empire!!!
Leo Williams: .
Cheyenne Hanson: No, m