Best Legal Entity for Real Estate Investing

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Freedom Mentor

Freedom Mentor

Күн бұрын

Пікірлер: 342
@billygarrett9051
@billygarrett9051 8 жыл бұрын
I appreciate all your videos. 1 year ago I was homeless living in my car and just after watching your videos I over heard a lady talking about selling a rent house because people keep trashing the place. I had no money but she was dealing with a lost title so I hand wrote a contract and took possession on the place. in three weeks I flipped that place and was able to buy two more houses and some land. Thank you for all your videos they have really changed my life. I still have lots to learn ,but because of your help I'm well on my way to changing my stars.
@anthonyarias8293
@anthonyarias8293 8 жыл бұрын
That's what's up Billy. More people need to make it happen like that story
@TheOneluvlieladie
@TheOneluvlieladie 5 жыл бұрын
wow, so awesome and inspiring!!
@krisjoy2
@krisjoy2 4 жыл бұрын
sounds like bs
@freedom_mentor
@freedom_mentor 10 жыл бұрын
An attorney emailed me today to add the following: "...I just caught your video on entities. I'm sure you know this, but it appears to have been omitted from the presentation: regardless of the entity created ALWAYS cover yourself with insurance, especially if you're personally doing repair work on a property. I'm an attorney, and if I litigate my complaint with probably name the entity and the owner of the entity as defendants; I'll let the trier of facts figure out whose liable.In any case, the carrier will pay for legal representation!..." and I AGREE with him!
@bsinita_wokeone
@bsinita_wokeone 10 жыл бұрын
hi were do find the money to pay for attorneys and insurance is there a fee because im unemployment and cant get unemployment insurance. so what do i do!!?
@freedom_mentor
@freedom_mentor 10 жыл бұрын
B Sinita If you are too broke to afford the services of an accountant and attorney, perhaps you may not need to worry about protecting your assets? That's the position I was in when I first got started. They are going to cost several hundred dollars to get their expert advice.
@bsinita_wokeone
@bsinita_wokeone 10 жыл бұрын
ok so what another option!!?
@freedom_mentor
@freedom_mentor 10 жыл бұрын
B Sinita If you don't have the money to pay legal and tax professionals for their advice, one option is to not get legal or accounting advice. Or, save up the money and then pay for the advice at that time.
@bsinita_wokeone
@bsinita_wokeone 10 жыл бұрын
ok thank
@FloridaRealtor333
@FloridaRealtor333 4 жыл бұрын
Phil, you were one of the great guys that motivated me to get started and learn. I started watching and taking notes everyday on my lunch break from my day job. 3 years later, I was able to leave my full time job and become financially independent through real estate investing
@freedom_mentor
@freedom_mentor 4 жыл бұрын
Well done! Thanks for sharing.
@modicpa6546
@modicpa6546 8 жыл бұрын
Hi Phil, As a CPA, I just wanted to inform you that Rental Real Estate activities are Reported on Schedule E for an individual not Schedule C as you've mentioned in first few minutes in your video. This is very important to clarify for reporting purposes and how it is taxed.
@marlonbrando5342
@marlonbrando5342 7 жыл бұрын
Not if you are flipping properties
@AB-ey8nv
@AB-ey8nv 5 жыл бұрын
@@marlonbrando5342 flipping properties is different than Rental Real Estate like the CPA said it is true that you report RENTAL REALESTATE (which you are not flipping) on Schedule E. I caught that at the front of his video also.
@bicyclist2
@bicyclist2 5 жыл бұрын
I saw one of Phil's adverts not to long ago. Good to see a lot more good information. Great to see he's not trying to sell something. Thanks so very much from Ohio.
@sthsidekid24
@sthsidekid24 10 жыл бұрын
I am on a mission to watch every single one of your KZbin videos, and I applied to your apprentice program. You are a great teacher, I hope we can work together soon. Thank You so much Phil Pustejovsky
@noahchase1
@noahchase1 9 жыл бұрын
A few thoughts from a tax accountant here: 1. Owning real estate as a sole pro does not necessarily trigger self-employment tax, nor the filing of a Schedule C. Most likely, you are going to file a Schedule E, and the rental income is not subject to SE tax. So creating an S Corp for the purpose of avoiding SE tax would be a waste of time (and money). If you are a flipper, then that is another story. But I think most people watching the video own real estate as a landlord and therefore will not be subject to SE tax. 2. Passive income is not taxed at preferential rates. You are referring to capital gains here. Rental income, although considered passive income, is not capital gains, and is taxed at the same rate as your W2 active income. 3. Owning real estate inside an S Corp is ill-advised. Here are a few reasons why: A. Shareholders in S corporations are often limited in their ability to deduct rental losses. Losses are limited to your basis in the S Corp (this is the biggest drawback). B. Most residential lenders will NOT give a mortgage to an S corporation. C. S Corporations historically have had a much higher audit risk than other entities. *I could probably name 10 more reasons. I liked your video, just thought I'd share my thoughts.
@freedom_mentor
@freedom_mentor 9 жыл бұрын
noahchase1 I was NOT referring to setting up an LLC taxed as an S Corp for collecting rental income; it was in regards to flipping, which you corroborated. The vast majority of my audience flips houses over owning rentals.
@dark9218
@dark9218 9 жыл бұрын
So being an active investor, whether owning rentals and/or flipping, will be taxed at the ordinary tax rate? Also, does the IRS gig you on the amount of hours you spend being active or passive investor?
@noahchase1
@noahchase1 9 жыл бұрын
Black Future Yes, the preferential tax rates generally don't apply to rental activities. If you own a rental, the monthly rent is ordinary income taxed at ordinary rates (similar to your W2 job income). A year later you can sell the rental property and the gain would be taxed at the preferential long-term capital gain rate. The same is true if you buy a house and flip it. You would have to hold on to the flip for a year, then that would be considered a long-term capital gain taxed at the preferential rate. Hardly anyone does that though. In general, real estate activities are considered passive activities. This means passive losses can only be applied to passive gains. If you have a $2,000 real estate loss and no passive income to apply it to, you have to defer that loss to future years until you can use it. However, if you are deemed an active participant in the activity, you can apply that loss to any income (W2 income, etc). There are rules that determine if you are an active participant. And yes, some of those rules are based on the hours you spend in the activity. The simplest rule of thumb is if you own at least a 10% interest in the investment, you are an active participant. And an active participant can offset your passive activity loss against any income (not just passive).
@dark9218
@dark9218 9 жыл бұрын
So common sense is key here...thanks for the info
@frizela5161
@frizela5161 6 жыл бұрын
Winner of a video, I've been looking for "before investing in real estate" for a while now, and I think this has helped. Have you ever come across - Ponasson Estate Earthman - (Have a quick look on google cant remember the place now ) ? Ive heard some pretty good things about it and my cousin got cool success with it.
@douglascooke1926
@douglascooke1926 8 жыл бұрын
Rental activity is considered "active" if you personally manage the rental (advertise for tenants, show the property, arrange repairs/maintenance, deposit checks, etc..).
@amcrx
@amcrx 9 жыл бұрын
One of the best real estate teachers around , thanks Phil!!
@renatawbj
@renatawbj 7 жыл бұрын
Thank you very much phil for all your videos I’ve been learning a lot my husband and I were thinking about going to the real estate investment for rentals and we do appreciate all your help God bless you and your family
@TedPert
@TedPert 10 ай бұрын
we never ever own anything just dont pay your mortgage for a few months and you find out!very nicely put phil this is a video thats truly very easy to understand!Thank you.
@freedom_mentor
@freedom_mentor 9 ай бұрын
Glad you enjoyed it!
@irinab7524
@irinab7524 10 жыл бұрын
When you own LLC alone, you also file Sch.C on your own tax return. For tax purposes it is disregarded entity In state Ohio, USA
@JohnnyElihue
@JohnnyElihue 8 жыл бұрын
Thank you very much for this video. You'd be surprised how hard it is to find clear concise information on this topic. Great work! Thank you!
@justinf8630
@justinf8630 8 жыл бұрын
Wow, I appreciate people like you. Giving your time teaching others. Thank you for this very informational video!
@anthonyarias8293
@anthonyarias8293 8 жыл бұрын
Yeah his channel was one of the first to so spite to get into the business
@B2LPhoto
@B2LPhoto 11 жыл бұрын
I'm so happy to be the 1st to watch this video. Thanks for this post Phil! Great info.I needed this.
@leisuresuitlarry8311
@leisuresuitlarry8311 9 жыл бұрын
Phil, I believe another issue with deeding your property from your name to an LLC is that the Title Policy was issued to YOU and not the LLC, and moving it will void the Policy. I also believe that some Title Companies may have an additional rider you can purchase that will allow the move so the insurance carries forward.
@DemetriNocturnal
@DemetriNocturnal 9 жыл бұрын
I'm currently reading your book: "How To Be A Real Estate Investor" AWESOME! :) Thank you.
@chrisjohanson8200
@chrisjohanson8200 10 жыл бұрын
"Tennessee, when I was investing up there"
@sarahshinaberry6170
@sarahshinaberry6170 6 жыл бұрын
I lived in TN and now live in FL, so I totally get it! LOL
@ITILII
@ITILII 4 жыл бұрын
Makes sense to anyone who lives South of there, does it not ....
@MrCab3000
@MrCab3000 10 жыл бұрын
Thanks for the response Phil! I will try that..also thanks for all the videos, I've learned a lot.
@josephjones9123
@josephjones9123 9 жыл бұрын
I have been watching your videos the past few days. Thanks for the presentations. Your easy to understand. I'm seriously thinking of testing the waters in real estate in my area. i recently got completely out of dept and have a decent job in the oil field. So your videos are helping me out. Thanks bud.
@anthonyarias8293
@anthonyarias8293 8 жыл бұрын
Go for it joe. Phil has great content
@agiftedcurse
@agiftedcurse 9 жыл бұрын
Also even with an LLC it's a good idea to get liability insurance on rentals. For me it has only added another $80-$100 a year per property for a million dollar coverage. You never know who will and can get hurt on your property.
@maynez2670
@maynez2670 10 жыл бұрын
Keep up the great vids! they really help me out.
@Pdiddy2400
@Pdiddy2400 10 жыл бұрын
Subscribed!! Many thanks form Australia, here it is not common to purchase through owner financing or avoid banks for real estate loans.. very uncommon, its tight and people aren't accustomed to the idea!
@freedom_mentor
@freedom_mentor 10 жыл бұрын
True. But creative financing techniques aren't used by the majority of people either. It's a special niche within the overall real estate business.
@princegold1927
@princegold1927 5 жыл бұрын
Broooo I'm a 22 year old from canada and u just mention the wisdom of a life time.......
@storyofscripture
@storyofscripture 11 жыл бұрын
The strategy I like is when you get to the point where you are bundling properties with LLCs all owned by a C Corp. who is run by a Trust which is in a Limited Partnership, not for every one, but definitely cool thing to know and play around with.
@freedom_mentor
@freedom_mentor 11 жыл бұрын
Why a C Corp in the middle of all that? Having one entity own all of your individual LLCs is certainly a structure many larger investors move to, but I am curious as to why a C Corp?
@storyofscripture
@storyofscripture 11 жыл бұрын
C Corp provides better tax shelter and liability protection than S Corp. and S corp is a Flow-through entity providing no liability protection
@freedom_mentor
@freedom_mentor 11 жыл бұрын
benjamin lucas No liability protection? I'm not so sure I understand that rationale? The income for tax purposes is "flow-through" but my understanding is that it is a Corporation which hypothetically, is by its very nature a liability shield. Also, with a C Corp, you have to pay taxes on profits at the corporate level and then the personal level. So most real estate investors have chosen to avoid the double taxation. But you may know of "tax shelters" that eliminate the double taxation?
@sg1345
@sg1345 10 жыл бұрын
Phil Pustejovsky how does this whole thing play out if you own a duplex property (via cha loan), live in one side and rent the other out? It's still passive income that would have to be separated if you did any outside real estate business, right?
@jackgriffin8511
@jackgriffin8511 4 жыл бұрын
Phil - What does the state of Florida demand as far as the complexity of an operating agreement for an LLC, basic, or quite descriptive?
@freedom_mentor
@freedom_mentor 4 жыл бұрын
It has never been an issue for me. I have a standard Operating Agreement that I use that covers every aspect necessary. Whether complicated or simple, you'll need one that has been drafted by a competent attorney anyways.
@teched9956
@teched9956 10 жыл бұрын
Wanted to clarify your comments on tax related to rentals. For a corporation holding long-term rental properties, the net rental income is still taxed at your standard tax rate. Profit on sale of the property is where you benefit from having a separate entity for your rentals. If you make a profit on the sale of property in your active trading entity, the profit will be taxed at standard rates whereas if it is owned by the long-term rental entity, is will be taxed at the capital gains rate if that exists in your jurisdiction. I am not in the USA and there may be some special conditions that I don’t know about, but from a general accounting point of view, the above is true.
@freedom_mentor
@freedom_mentor 10 жыл бұрын
Then why on earth would it make sense to own rental property in a corporation?
@matthewceryes4455
@matthewceryes4455 10 жыл бұрын
Phil Pustejovsky what would be the best legal entity for rental property? explained above? (in the video)
@freedom_mentor
@freedom_mentor 10 жыл бұрын
Matthew Ceryes I believe this video answers your question.
@matthewceryes4455
@matthewceryes4455 10 жыл бұрын
Phil Pustejovsky I already watch the video I was just just confused about the comment you wrote above saying "Then why on earth would it make sense to own rental property in a corporation?" I thought a Limited Liability was the best one. Is this not the same thing?
@freedom_mentor
@freedom_mentor 10 жыл бұрын
Matthew Ceryes A "Corporation", also known as a C Corporation, is a VERY DIFFERENT legal entity than an LLC
@SUPERCIVILIAN44
@SUPERCIVILIAN44 4 жыл бұрын
This is great stuff!! Wow thats it your my real estate investor mentor! Im Canadian the rules are a little different as im just this learning industry keep up the great work thx!
@bestfrienddetroit3761
@bestfrienddetroit3761 8 жыл бұрын
I'm researching now on real estate and flipping houses this is the 1st video I've watched had great points but I would love to get more information
@freedom_mentor
@freedom_mentor 8 жыл бұрын
Take this course: courses.freedommentor.com
@300dionysius
@300dionysius 11 жыл бұрын
Thanks for the insight, very informative!
@realcyborgh
@realcyborgh 8 жыл бұрын
i don't have a mentor so i have to listen to you :/
@alial-big98
@alial-big98 4 жыл бұрын
Me too
@hgetahun
@hgetahun 7 жыл бұрын
Not exactly clear about the last 2 minutes. .... I wish you would expand on that
@garysullivan1970
@garysullivan1970 7 жыл бұрын
Phil, love your videos. I am in Georgia and am wanting to start rehabbing and selling as well as keeping some homes for rental properties. I can set up 2 separate LLC's for this correct? Also: I was told by someone that an LLC is good for longer term holds such as rentals, and an S-corp is best for rehabbing and selling. Your thoughts.....
@freedom_mentor
@freedom_mentor 7 жыл бұрын
LLCs can be taxed as S Corps. You never need to establish an S Corp to get the benefits of an S Corp. Plus, LLCs are easier to maintain than an S Corp. But feel free to take advice from others on this situation. I've spent no less than $20,000 on entity attorneys over the years to dial this in extremely well.
@lansawlandscaping2731
@lansawlandscaping2731 9 жыл бұрын
WhaT states can creative financing not be an option!? Tennessee? Due to deed "regulations?" I was also wondering about your mentoring program. Thanks for the knowledge Phil...Just bought your book! Waiting on it to show up!!!
@freedom_mentor
@freedom_mentor 9 жыл бұрын
Lansaw landscaping Every state is fair game for creative techniques. Absolutely Tennessee; that's where I did this business for over a decade.
@SpeakerBuilder
@SpeakerBuilder 5 жыл бұрын
You're talking about earned vs unearned income, earned from flipping houses, being labor based, earned income, vs rental income that is passive and technically unearned. The earned income is subject to social security taxes whereas the unearned income is not subject to social security taxes.
@fabmaserati
@fabmaserati 8 жыл бұрын
Hey Phil, You talk about this in your book: How to be a Real Estate Investor? Awesome videos here. Thank you.
@mbossom22
@mbossom22 5 жыл бұрын
Phil can you please do an updated version of this video and how the new tax laws apply to real estate investors. My accountant told me today, do not buy real estate with the purpose of depreciation. He said I’m better off flipping than doing rentals. I feel like my hopes and dreams of becoming a wealthy real estate investor had just gotten crushed.
@freedom_mentor
@freedom_mentor 5 жыл бұрын
Having an LLC allows you to deduct 20% of your net revenue thanks to the new tax laws. And you want to own rental property for all kinds of reasons, not just for being able to claim depreciation.
@shellypooh3272
@shellypooh3272 4 жыл бұрын
Hey Phil what about Alabama laws for this advice and thank u very much . u are so smart and I think u are making me a little smarter when it comes to real estate..
@freedom_mentor
@freedom_mentor 4 жыл бұрын
Same in Alabama as with every other state in America.
@parsonsd99
@parsonsd99 10 жыл бұрын
Hey Phil, Love your videos. I teach and coach at a small school in North Texas. Because of your videos, I'm thinking about trying my hand at real estate investing during my Summer time "off." Mostly flipping to start but I would like to begin to get into rentals as well. Is creating a LLC or sole proprietorship(with insurance) really necessary for a one or two deals a year type of situation? I do hope to get to the point where I am comfortable enough that I could do these year round, but for now its going to be a Spring/Summer time only thing. Thanks for your clear and easy to understand videos. It's making a very complicated process much more simple to understand.
@freedom_mentor
@freedom_mentor 10 жыл бұрын
(1) Teachers are fortunate to have that short period of extra time each year. Even doing one good deal per year that nets you an extra $20,000 could be really helpful. (2) As the video suggests, if you have nothing to lose, then what's it matter if you get sued, go to court and are ordered to pay a bunch of money. You're broke so who cares? But if you do want to liability protection, then creating a simply legal entity to do your side investing in would be wise. (3) The biggest hurdle will be the education to get you to the point whereby you have the knowledge to make good decisions and not end up wasting a whole summer on a deal that loses you money.
@lvtbus3167
@lvtbus3167 8 жыл бұрын
I am in Nevada, did not buy an investment property yet. I would consider getting an LLC for my investments once I learned not to use traditional financing, which was a fantastic point you made there. Would you suggest to use a non identifying name for this LLC (I have an unique name myself), and use someone else to file and be Managing Member on it so that you yourself would not show up anywhere on the business search? BTW, I am hooked on your channel, binging it like it's Breaking Bad!
@freedom_mentor
@freedom_mentor 8 жыл бұрын
Absolutely. But set it up in Wyoming if you want maximum privacy.
@KaliKali-hv9bt
@KaliKali-hv9bt 7 жыл бұрын
binging it like it's Breaking Bad! ---- I ♥ that!!!
@mdon718
@mdon718 4 жыл бұрын
Great content. I had the concern with LLCs and mortgages.
@rdwolf11b
@rdwolf11b 11 жыл бұрын
Phil, you mentioned taxes a few times in this video. It got me thinking, since there are several ways one can take to set up one's business - how are taxes therefore compiled. Not even sure if I am asking this question correctly. Can you do a, non-legal, instruction of how a creative investor tackles taxes and or being taxed? Does that make sense? Thanks.
@freedom_mentor
@freedom_mentor 11 жыл бұрын
This video is a bit difficult to hear due to the wind but this video may help 5 Ways to Save on Real Estate Investment Taxes
@swervomatic
@swervomatic 2 жыл бұрын
What would you recommend for someone who already has a business with liability insurance that isnt associated with real estate but the person wants to start getting into the rental property business. Combine the 2 with the same liability policy?
@freedom_mentor
@freedom_mentor 2 жыл бұрын
Each rental property you own will have its own liability component to it. For many years, people have asked me if there is a general liability policy for real estate investors and while I have never found one from any carriers, the bigger question is why you would need it? Under what circumstances would it be required?
@mexboxish
@mexboxish 11 жыл бұрын
Thanks for the video Phil
@MarcusLeepapi
@MarcusLeepapi 9 жыл бұрын
Thank so much. I just got your book this pasted Friday. Thanks...
@tyatolla
@tyatolla 5 жыл бұрын
Thank you very much for all the highly informative videos. You offer such great advice, and you are straight to the point. I appreciate you. I look to become a real estate investor some day, and your videos help.
@cottondai
@cottondai 5 жыл бұрын
Thank you for the insight on legal entity.
@krystlewhitehurst-mitchell5569
@krystlewhitehurst-mitchell5569 10 жыл бұрын
How do you buy rental property without using a bank loan? Investors and if so, how will you ever really own it? Is it better to buy it cash if you can?
@a_9414
@a_9414 9 жыл бұрын
Hello Mr. Pustejovsky, I'm majoring computer science, but wanted to get into real estate investing. Your videos are really helpful to me as beginner, and want to thank you sir for providing all these informations about real estate investing for free. I live in the state of California, and was wondering to be a licenced estate do i need to have some sort certifications or prior college education in real estate. I'm really new into real estate, so it would sincerely grateful of you to help me out please sir. Once again,thank you Sir for all the incredible information you provide to us on youtube and also on your website. I also got myself a copy of how to be a real estate investor, and trust me it's a fantastic book to have to get started in real estate investing. sincerely, Akash Chand
@Noum77
@Noum77 8 жыл бұрын
I'm a web developer and I'm highly interrested in real estate investing too
@stevehenry9826
@stevehenry9826 5 жыл бұрын
It the State that your investor freind owns these properties, in California? As I have read that the California state laws are not friendly to Corporate enities such as LLC's and charge a redulous fee just for having an LLC.
@juancano1704
@juancano1704 7 жыл бұрын
I only own 1 home free and clear and file as a sole proprietor. Should I change entities to save on taxes and if so which one?
@freedom_mentor
@freedom_mentor 7 жыл бұрын
I'm NOT giving you legal or accounting advice, but my legal counsel would tell me, if I was in your shoes, to make sure you have liability protection on my real estate; such as owning the property in an LLC (and depending on the state, it may need to be multi-member). As for my accountant, he would prefer that it be taxed as a partnership rather than an S Corp.
@elizaamaro
@elizaamaro 7 жыл бұрын
What about Texas? Is this for all the states in America?
@dearsophiebrooke
@dearsophiebrooke 10 жыл бұрын
Great video!! Thank you for sharing.
@princeascetique
@princeascetique 9 жыл бұрын
Great video Phil Putsejovsky ! Question: You mention you need one entity for active and one for passive incomes. What about "rent to own" ? Do you put it in passive income entity or active income entity? Because you get a deposit that I would consider active income, but then you rent, which would be passive income. Thanks
@freedom_mentor
@freedom_mentor 9 жыл бұрын
+princeascetique Passive income. option Payment can either be considered income at the point at which they pay or a deposit that only becomes income once the tenant either exercises their option to purchase or vacates the property.
@princeascetique
@princeascetique 9 жыл бұрын
Phil Pustejovsky Ok I understand. I guess it would be passive if you dont ask for the deposit upfront, because I m hearing some investors do. Well thanks very much for the quick follow up
@jesussandoval2184
@jesussandoval2184 10 жыл бұрын
Hey Phil what do you suggest passive or active go into which one your sole proprietorship or your LLC which one do you use for which one or what do you recommend?
@freedom_mentor
@freedom_mentor 10 жыл бұрын
Depends on the state you live in and the tax rules associated with it. ASk your accountant.
@len1092
@len1092 8 жыл бұрын
Hi Phil , I am really enjoying your video and learning a lot from them. Thank you so much for sharing your videos. I have another question, I am setting up another company and would love to know what is the difference and meaning between LLC and LLLP company thank you so much Phil, looking forward to hearing from you soon.
@freedom_mentor
@freedom_mentor 8 жыл бұрын
+Len Ask an attorney :)
@anonymousdata6771
@anonymousdata6771 4 жыл бұрын
Phil, You said you have never got a bank loan to buy a rental property, how did you fund your first rental property? Private, hard money, your own money?
@freedom_mentor
@freedom_mentor 4 жыл бұрын
At the time of the shooting of that video (2013), I had never used a Bank Loan, Hard Money Loan or Private Money for purchasing a rental property. I had simply structured creative financing with the seller. However, in the past 7 years, I have used a bank loan to acquire vacation rentals.
@anonymousdata6771
@anonymousdata6771 4 жыл бұрын
Phil Pustejovsky Aweomse! I am in East Tn your videos are so helpful I appreciate all you do man! I’m getting my ducks in a row then I am going to be interested in your apprentice program
@freedom_mentor
@freedom_mentor 4 жыл бұрын
@@anonymousdata6771 I love East Tennessee. I own quite a bit of real estate in Pigeon Forge / Gatlinburg.
@jodiewilson5456
@jodiewilson5456 8 жыл бұрын
Hello Phil, I have a question, but first I would like to say thanks for sharing your knowledge, also I just ordered your book on amazon, you said you never use banks to finance any of your properties, how do you pull equity out of your properties.
@freedom_mentor
@freedom_mentor 8 жыл бұрын
There can be some very good reasons to borrow money against real estate which is explained in this video: kzbin.info/www/bejne/iaq9pptvms1jgKs Especially in very low interest rate times
@kristenm9984
@kristenm9984 8 жыл бұрын
Hey Phil, do you have a video that goes deeper into land trusts in FL? I tried to search but didn't find any. Some investors I work with swear by them, but I've heard it can be difficult to get insurance or refi. What's your take? Any advice? FYI You're awesome and your videos are priceless. Thank you so much for taking the time & making them! I wish I knew half of what you know!
@freedom_mentor
@freedom_mentor 8 жыл бұрын
I have as much knowledge on the subject as anyone you could possibly find or hire. And I don't use them. LLCs are better.
@jeffflowers729
@jeffflowers729 6 жыл бұрын
One further step is that the LLC, taxed as an S corp, is under control of a trust. While ownership of an LLC is public information, a trust is not. You create anonymity against who actually owns the property. LLC protects the ownership entity, not the asset. Creating a trust protects the asset. Nevada and Wyoming are the preferred states for anonymity and nondisclosure. Don't be the low hanging fruit lawyers love to go after. You would likely have to register in your home state where you do all or most of your business as a foreign entity. But for reasons you suggest, setting up in your home state can make sense.
@freedom_mentor
@freedom_mentor 6 жыл бұрын
Asset protection attorneys would disagree with you and argue that the only reason to use a Trust is for base level anonymity but that a court order could cut through it easily and find the true owner, even if using a Trust in Nevis or other the Cook Islands.
@jeffflowers729
@jeffflowers729 6 жыл бұрын
Phil Pustejovsky wasn’t expecting a reply from the man himself :) you know what they say Phil, you can put two attorneys in a room and they come out with 3 opinions lol. I’m just saying most attorneys go for the low hanging fruit. My fruit is set so high they can’t even see it. Another reason for setting up a RE trust is that most mortgages are assumable into a trust. Great strategy for foreclosure bailouts.
@freedom_mentor
@freedom_mentor 6 жыл бұрын
Getting property insurance when the title holder is a Trust is not only difficult (meaning there are far fewer carriers than when owned in an LLC); it's also much more expensive than when owned in an LLC. Obtaining a mortgage when the borrower is a Trust is extremely difficult and the terms are much, much worse. Ownership in an LLC is almost always a commercial loan which is usually much higher rates and shorter amortization and usually has a balloon. Furthermore, a trust doesn't provide liability protection. The smartest asset protection thinkers in the world that I have connected with all echo the same advice; own real estate in LLCs and then the member (or members) of that LLC can be a Trust. @@jeffflowers729
@HuyVu-mk4kl
@HuyVu-mk4kl 8 жыл бұрын
hi Phil, you mentioned traditional investors (those who get loan from banks) and non-traditional. How non-traditional investors raise money to acquire estates? do you have a vid about this topic? many thanks
@freedom_mentor
@freedom_mentor 8 жыл бұрын
Watch this video: kzbin.info/www/bejne/ima8g2Swg52Ap8U
@siqueirabf
@siqueirabf 8 жыл бұрын
Phil Pustejovsky
@osheawilson4786
@osheawilson4786 11 жыл бұрын
what are your feelings on setting up a holding company for the two entities or is that the same thing as setting up a trust?
@freedom_mentor
@freedom_mentor 11 жыл бұрын
What would be your purpose for setting up the holding company? What would that do for you besides creating another entity to which yearly annual fees are owed as well as tax return filings?
@johnnybillingo9065
@johnnybillingo9065 11 жыл бұрын
Phil, since I am not 18 yet what do you recommend I do to better understand creative real estate investing? ( I already have read your book, along with the 8.5 hour video training course )
@freedom_mentor
@freedom_mentor 11 жыл бұрын
Perhaps you could become a Birddog for a local investor and knock on doors and dig up some deals for him/her.
@justinm5725
@justinm5725 7 жыл бұрын
in florida if you wanna buy and lease out and have rentals isn't best to get liability insurance or LLC
@kriszma1212
@kriszma1212 7 жыл бұрын
I like the way you teach and explain things. i understand you're in Florida. Was it Jville. I like your style, and live in Jville. maybe we can get together. I don't know what you charge 4 what you teach, but I will I can learn from you.
@angelfuentes4919
@angelfuentes4919 9 жыл бұрын
hellow i was going to ask how can i get started and how do i make turms with the bank when im only 19 i bin ready and on stocks and realastate and trying to look for a mentor but looking at your videos makes things a little better but im young they look at me difrently hard for me to try and get a house im reading books and i wont to get tour book but im manuging my money in going to get it this weekend
@freedom_mentor
@freedom_mentor 9 жыл бұрын
+Angel Fuentes Take this course (it's free): courses.freedommentor.com
@johnnybillingo9065
@johnnybillingo9065 11 жыл бұрын
Thank you for your response, one last question is do you think someone straight out of high school can do this? And by out of high school I mean someone who had just turned 18. Or would it be smarter to wait just a year or two? Because I know you say a lot people wish they started earlier but how early is a good time?
@freedom_mentor
@freedom_mentor 11 жыл бұрын
The best time to start would have been yesterday
@chuck5470
@chuck5470 11 жыл бұрын
I totally agree with Phil. I wish I had started right out of high school!! Don't try to buy a new car, get some property, but be a student of the game!!!!!!
@parkerbuchanan1594
@parkerbuchanan1594 10 жыл бұрын
Thanks for providing us with a source of information.
@jimsutton4456
@jimsutton4456 8 жыл бұрын
Phil: How might you shield yourself from being disclosed as the person buying? Can one of these Entities be used to by a property anonymously. Let's say you want to purchase a property of someone you know, but don;t want them to know it's you as the buyer. How? What's the best way? Have you covered this?
@freedom_mentor
@freedom_mentor 8 жыл бұрын
+Jim Sutton Use an LLC or a Trust as the Buyer
@MissaLifeStyle
@MissaLifeStyle 9 жыл бұрын
I thoroughly enjoy all of your videos.
@lifewithali3697
@lifewithali3697 8 жыл бұрын
I respect and thank you for your will to provide knowledge to those without it. I am very interested in investing in properties mainly wholesaling. I've been watching your videos and researching. I would like more one on one coaching from you so i can apply what I am learning. I live in atlanta. I believe this is an excellent market for wholesaling. what steps do I need to take in order to become one of your apprentice?!
@freedom_mentor
@freedom_mentor 8 жыл бұрын
Go here: www.freedommentor.com/apprentice
@pv0315
@pv0315 4 жыл бұрын
Very nice stuff
@len1092
@len1092 8 жыл бұрын
Hi! Phil this is probably out of the question with regards with your video, I am very sorry about that, but just want to know if I have the right to ask for the original Title of the property , I am very confused about, and wanting to know if this is legal or not, I bought a property through insider cash in Utah, so I did put 12,000 dollar for a down payment on the property that I have purchase, so now when I ask them about the Title of the said property she told me that the Insider Cash company will be the one to hold the original Title of the property because the said property is not fully paid yet or I still have a mortgage through them. Thank you so much Phil really do appraciate your feed back.
@freedom_mentor
@freedom_mentor 8 жыл бұрын
+Len Ask a Title Company to help you verify if you have clear title from the previous owner.
@tigeradam220
@tigeradam220 5 жыл бұрын
This gentleman is gold. Thanks!
@monikakattanarealtor288
@monikakattanarealtor288 7 жыл бұрын
Thank you for all the useful information!
@shassane
@shassane 11 жыл бұрын
Thanks for the post Phil.
@tyrones3535
@tyrones3535 9 жыл бұрын
Hey, Phil I'm a landlord in DC. I need to set up a LLC. This is what I'm doing. I'm converting my 4-unit apartment into CONDOS. Once this is done.I plan to live in one and sell the three or rather two to paid off the hard money loan...the third one will be profit. What Entity do you suggest?
@freedom_mentor
@freedom_mentor 9 жыл бұрын
Call an attorney and an accountant familiar with real estate investing.
@janmartin6753
@janmartin6753 10 жыл бұрын
good information! All of these videos are great!
@matthewconner463
@matthewconner463 3 жыл бұрын
Great advise 👌🏾
@Mitchh615
@Mitchh615 11 жыл бұрын
Phil how do you find buyers before you close the deal with the seller, without them asking to buy it from the seller themselves. So that way they don't know what you just paid for it
@freedom_mentor
@freedom_mentor 11 жыл бұрын
i think this video may answer much of your questions. What They Don't Tell You About Wholesaling Houses If not all of them, keep watching more of my videos. I cover this topic in great detail.
@rafaellim6816
@rafaellim6816 10 жыл бұрын
if you only have 2 houses would you still recommend talking to an attorney? Also my friend was asking if he should talk to an attorney first or a tax advisor?
@freedom_mentor
@freedom_mentor 10 жыл бұрын
Yes. Both. Talk to the tax professional first.
@BK-gm5nm
@BK-gm5nm 5 жыл бұрын
Great Video
@code3design
@code3design 7 жыл бұрын
You mentioned that sole proprietor may not pay excise taxes where as with an LLC, depending on your state, you may. If purchased property with an LLC and is a single member and pays taxes as a sole proprietor, would I still have to pay the excise tax?
@freedom_mentor
@freedom_mentor 7 жыл бұрын
You'll have to research that for your particular state's business income tax code.
@GamerDjsquared69
@GamerDjsquared69 9 жыл бұрын
Great video Phil! I'm starting out in the Real Estate world and talked to a friend of mine who is an agent. I mentioned to him about getting homes with out a bank and says that's really hard to come by. Even if the seller paid the house off, its rare that they will finance. He also said doing an equity loan I would still need to run a credit check. Just wondering how you still acquire property without a bank?
@freedom_mentor
@freedom_mentor 9 жыл бұрын
+Gamer Djsquared69 If you ask a real estate agent how to find the deals that we do, he/she won't know. You asked the wrong person :)
@GamerDjsquared69
@GamerDjsquared69 9 жыл бұрын
+Phil Pustejovsky fair enough lol I figured since I grew up with him he'd help. Oh well
@renaymiddleton2868
@renaymiddleton2868 10 жыл бұрын
I Phil your video was very informing...I'm actually in the process if setting up my own llc interested in rental properties.... I live in CT but I don't know how to go about getting property... I'm just looking for some insight and someone to provide me with steps in the right direction ... HELP!!!!!
@freedom_mentor
@freedom_mentor 10 жыл бұрын
Take this course www.udemy.com/real-estate-investing-flipping-houses and use the coupon code "freedommentor" to get it for free
@bajovujovic2004
@bajovujovic2004 6 жыл бұрын
Hi Phil, I am looking to get into the business of flipping and I am doing it with my cash. What are the pros to do few of them in my name and not opening in a company name? I appreciate your take on it. Happy New Year pal, Thanks Bajo
@freedom_mentor
@freedom_mentor 6 жыл бұрын
None. Do your first flip in an LLC.
@bajovujovic2004
@bajovujovic2004 6 жыл бұрын
@@freedom_mentor thanks Phil :)
@carolhazel
@carolhazel 7 жыл бұрын
Phil, as I'm setting up my two different entities should I also have two different phone numbers? One for the buyers and one for the sellers and of course should I also have two different business cards?
@freedom_mentor
@freedom_mentor 7 жыл бұрын
Depends on what types of sellers and what types of buyers you are dealing with.
@carolhazel
@carolhazel 7 жыл бұрын
Could you do a video on that?
@freedom_mentor
@freedom_mentor 7 жыл бұрын
It doesn't matter enough. Whether you have one phone number and one business card or two phone numbers and two business cards, it will make very little, if any, difference in your results. I have a video for my Apprentices called, "Don't Major in Minor Things". In that video, I tell them NOT to get business cards because it is a minor thing and takes away from focusing on the major things that actually produce results in real estate investing.
@betterbprepared
@betterbprepared 6 жыл бұрын
Hi Phil, thanks for the great explanation.
@robertwrightjr5175
@robertwrightjr5175 10 жыл бұрын
Great Video! very informative Phil :)
@brendakamga777
@brendakamga777 8 жыл бұрын
what if you don't have money to talk to an attorney or lawyer, where would you get informed about doing a sole proprietorship or llc
@curiousadam1863
@curiousadam1863 8 жыл бұрын
What do you think of Detroit home investment?
@freedom_mentor
@freedom_mentor 8 жыл бұрын
Depends
@curiousadam1863
@curiousadam1863 8 жыл бұрын
I really don't know much about Detroit but I heard the houses there are so cheap so I asked you if you have any information about investing in Detroit.Thank you.
@B1GJOHNSTUD
@B1GJOHNSTUD 9 жыл бұрын
any advice for a partnership llc where both partners live in different states? any advice, comments, information is appreciated! thanks!
@freedom_mentor
@freedom_mentor 9 жыл бұрын
Partnership? Yikes! Watch this video: kzbin.info/www/bejne/qai8doquatZ3iJY
@B1GJOHNSTUD
@B1GJOHNSTUD 9 жыл бұрын
thank you for the quick reply phil. i watched it and am fully aware of all the factors that come along with bad partnerships. you made a valid point at 8:03 so wish us luck! i like what you said at 9:58 as well.
@jcjimenez5327
@jcjimenez5327 9 жыл бұрын
Hi Phil so I'm closing in a few days on a four Plex and I'm going to create a LLC for it. I want to also put it in a land trust under somebody else's name in a different state So what should I do first the LLC or the land trust? I know that both offer protection
@freedom_mentor
@freedom_mentor 9 жыл бұрын
+Juan Jimenez LLC and the Trust owns the LLC
@karenkennedy6998
@karenkennedy6998 7 жыл бұрын
very good information.
@araoke
@araoke 8 жыл бұрын
Hello Phil. How can I invest in real estate without a bank loan or personal finance. I have two houses now that are finance by a mortgage company.and will like to buy more in the future.
@freedom_mentor
@freedom_mentor 8 жыл бұрын
Watch this video: kzbin.info/www/bejne/ooS7eKuFnrejbaM
@kidsplaymusic
@kidsplaymusic 4 жыл бұрын
Phil How do you get the money to invest. Do you need your own money or loans.?
@freedom_mentor
@freedom_mentor 4 жыл бұрын
Take this free video course. It will explain everything to you. Remember that I started off homeless. www.freedommentor.com/video-course
@konradbroer5290
@konradbroer5290 8 жыл бұрын
Great Videos, I'm intrigued. You're losing me at 17:17. How are you obtaining financing to get around the bank's demand that the deed be in your name? Thanks.
@freedom_mentor
@freedom_mentor 8 жыл бұрын
No. This video explains: kzbin.info/www/bejne/ima8g2Swg52Ap8U
@garyuren84
@garyuren84 5 жыл бұрын
I wanted to set up a real estate business with a couple of our kids but I was told that it was a stupid idea to use a LLC if you have partners. Any ideas?
@freedom_mentor
@freedom_mentor 5 жыл бұрын
It's a great idea if you structure the LLC correctly.
@markpineda5404
@markpineda5404 9 жыл бұрын
Hello Phil my name is Mark and I want to go into the real estate industry I don't know anything and have no experience what's so ever what should I do ?
@freedom_mentor
@freedom_mentor 9 жыл бұрын
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