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stlouislandlord

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Posts: 27
Reply with quote  #1 
anyone know more about becoming incorporated or LLC?  I own 3 rental properties and I'm about to buy a 4th, but everything is currently in my name and don't feel comfortable with that, plus I've heard you could have tax breaks if your homes are owned by a corporation and the company can buy you a car, pay for gas, etc.

Also, how does the loans work when it's a company?  I use to be a LO so I know a lot about residential loans but nothing about corporate, who's credit do they look at when a company buys a property? 

and if you know another landlord group or forum with more information please let me know, I'm desperately seeking more information on how to do this landlord stuff
OHlandlord

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Posts: 3,814
Reply with quote  #2 

I can't help you on the LLC.  We're currently looking into this same thing.  I, too, am not comfortable owning all these properties, even with the umbrella liability policy. 

 

Other LL sites I know of are: 

http://www.thelpa.com/pa/forum.html    Very helpful and polite to all LLs

http://bbs.mrlandlord.com/         Read the posts and search the index before posting questions (they don't like to answer twice, and some people there can be sarcastic)

 

siphongasse

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Posts: 3
Reply with quote  #3 
First read the book "Inc. Yourself".  Each property or group of very similar properties should be put into their own LLC. This is to protect one property against liaibility of the next and to protect your personal assets. If you got into a car accident and killed somone and they sued you they could take your personal assets and all your properties. If they are in LLCs they are protected because you don't actually own them. Them company does.  This also provides many tax benefits. Especially if your renatl income changes your tax bracket. Read books. There are lots of ways to do it but do it.
OHlandlord

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Posts: 3,814
Reply with quote  #4 
There are some unintended consequences of forming an LLC in my state.  I just found out that if I put the rentals into an LLC, I can no longer do the evictions myself.  I have to hire an attorney to do them because I no longer own them, the LLC does.  (Here, only an owner or an attorney can do an eviction.)  I'm thinking twice about this now - an attorney is expensive for an eviction here ($900-1500) per eviction.  I may just stick to the $1 mil. umbrella policy instead.
stlouislandlord

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Posts: 27
Reply with quote  #5 
that's interesting OHlandlord, never thought about that but that would be a problem.  Lawyer's usually charge about $300 here
OHlandlord

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Posts: 3,814
Reply with quote  #6 

In a small town like this, they have a corner on the market.  Their fees are too high!  That's why I do as many as I can myself.  Fortunately, I don't have to do too many.

kurt

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Posts: 137
Reply with quote  #7 

sad as it is to say, almost hope the dead beats run/take off so you don't have to file eviction.

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